ugh, new here but ready to learn

[screwedMHIC]

[ameliabedilia]

Welcome!
I don't know much about business debt, but I can answer a few questions.
If you file a 7 you can file all your unsecured and secured debt, not just business debt.
Your student loans can't be discharged.
Discharged means totally wiped out and you don't have to repay them. That is what you want!

[screwedMHIC]

What I'm really struggling with the more I read is what I owe vs what my family needs from me for income and how that would be viewed.

Technically the only monthly debts I have are the $912 to the state for the collections and maybe another $300 in studen loans and the one CC. My part of the income is $5900/mo. however after tax my biweekly income of say $2100 take home barely covers our biweekly mortgage payment of just about $2100. I'm now sure how I can do this, I guess I need to keep reading and start talking to local atty's who will know the ins and outs of the business debt criteria. Just looking at it from here I don't think I would meet any criteria but I don't have the $900 extra with a 4 month old around.

Is there any wisdom in using the threat of BK to negotiate my debt down and scraping up the payoff amt. I don't think this type of debt can by tagged as income.

The other part is that my score is in the crapper with 9 new collections for $85K and I'm not sure its worth waiting on that to recover.

[AboutToBK13]

There is always wisdom in using leverage to negotiate debts to avoid BK if you can. I was doing that with my secured CC's unti Amex refused to play ball. At that point, for me it was a deal breaker and we are not going to file a BK.

Before you go to far down the road, talk to a BK lawyer concerning your options. You can use the info from the consult for additional leverage in your negotiations.

[screwedMHIC]

should I retain a BK lawyer to negotiate that settlement for me or should I just go it alone. My gut now says that a BK will cause too much detriment to make it worthwhile. I will file Ch13 if I do in which case I think I could only hope for interest rate help and maybe a small reduction, I/we are not insolvent. My only hope in BK is that the business penalties could be discharged, to do that I assume a lot of risk to personal property and lose control of my income. As I understand it I would also need to put my wife's 780+ score at risk by not paying bills and we are co-signed on 2 accounts that I would have to include.

Please let me know if I am thinking about this the wrong way. I have a consultation next week.

[mcdulph]

With the amount of money you are talking about, only an attorney can advise you. Your situation also sounds fairly complex. However, my first impression is that bankruptcy would be a good option for you. With a bk, you'll have no worries about having to claim "forgiven" debt as income, for example.

From what I understand (and I really hope it's correct--I'm in same situation as your wife is), one spouse filing is not supposed to have much of an effect on the nonfiling spouse's credit. My hubby filed about 2 weeks ago, and I just got approved for new credit yesterday.

Your joint debts will have to be addressed in the plan, but that shouldn't really be a problem. In our case, I'm just going to keep paying the house and car notes directly to the creditor. Again from what I understand, my credit report will eventually flag these accounts as "included in the bankruptcy of a cosigner", but the accounts will still be current, so it shouldn't hurt my credit score. (At least in theory.)

Anyway, see what the attorney has to say. If he or she recommends filing for bankruptcy protection, try to think of it in terms of a business decision. Good luck!

[woeisme]

If you can prove these are non-consumer debts (from a business not personal) then I think you can file CH 7 even with your high income. My concern is your extremely high morgage payment. If you are no longer paying the 900 a month on the business debts, are you still going to be able to get by with so much going for your house?

[screwedMHIC]

yeah the mtg is ok, been doing it for 3 years now, we pay extra as well. No cars, no CC's really to speak of just the mtg and bills like gas, elect, type stuff.