Help, need some advice.
First, we're a family of 9. Even then, our current income puts us above the median average by about $1.5k/month. I'm looking at changing jobs to get better medical insurance -- there will be about 1-1.5k/month in pay cut, but we'll make up nearly that in gains on benefits, and the long-term potential is far far better. And did I mention the better medical insurance because the bills are racking up quickly with the current one (easily >$6k in the last three months!)
With the change in jobs, we'll be able to make our payments on everything, but only just barely -- minimum payments everywhere (and we are currently on everything). We'd probably try to do that, but for the house -- we are upside down (not sure to what extent), the neighborhood has gone to crap in the last year, graffiti, car's windows shot out, etc. Schools aren't terrible, but they're pretty bad -- and a very bad influence for my teen, who is becoming quite interested in the gang-bangers all around. Perhaps most importantly, the house is falling apart -- furnace is broken and we can't afford to fix, electrical panel is ancient and making scary sounds, and we see mold growing in some places.
So -- we're thinking it's time to give up fighting, and get out via Bk. Worst case Ch13 plan that I've worked out is still way better than where we're at. The thinking is that, after talking to a lawyer to double-check everything, we'll simply stop paying on everything but the one car loan we're planning on keeping (and utilities, of course). That savings, combined with a little cash that we have on hand, should easily allow us to pay first/last/deposit on a much nicer place (that still costs much less per month!) and move before any late payments even hit the credit report. Within the month or two of not paying after that, we should have enough to hire a BK lawyer (though we will consult with one before doing anything).
Any obvious flaws? Terrible idea?
I'm guessing that we should wait six months after the new job, for the drop in income to be fully reflected, or can they look at the new job paperwork and go from that rather than last six months? Should we wait a couple months into the six months at the new job, to reduce the length of time the late payments are there, before filing, to reduce calls and potential law suit problems? Or just get it over with and save up from not paying for longer before ch13 payments kick in? Or...?
Ack, feel like such a failure for not being able to protect my family right and not following through on comitments :-(
--randy
First, we're a family of 9. Even then, our current income puts us above the median average by about $1.5k/month. I'm looking at changing jobs to get better medical insurance -- there will be about 1-1.5k/month in pay cut, but we'll make up nearly that in gains on benefits, and the long-term potential is far far better. And did I mention the better medical insurance because the bills are racking up quickly with the current one (easily >$6k in the last three months!)
With the change in jobs, we'll be able to make our payments on everything, but only just barely -- minimum payments everywhere (and we are currently on everything). We'd probably try to do that, but for the house -- we are upside down (not sure to what extent), the neighborhood has gone to crap in the last year, graffiti, car's windows shot out, etc. Schools aren't terrible, but they're pretty bad -- and a very bad influence for my teen, who is becoming quite interested in the gang-bangers all around. Perhaps most importantly, the house is falling apart -- furnace is broken and we can't afford to fix, electrical panel is ancient and making scary sounds, and we see mold growing in some places.
So -- we're thinking it's time to give up fighting, and get out via Bk. Worst case Ch13 plan that I've worked out is still way better than where we're at. The thinking is that, after talking to a lawyer to double-check everything, we'll simply stop paying on everything but the one car loan we're planning on keeping (and utilities, of course). That savings, combined with a little cash that we have on hand, should easily allow us to pay first/last/deposit on a much nicer place (that still costs much less per month!) and move before any late payments even hit the credit report. Within the month or two of not paying after that, we should have enough to hire a BK lawyer (though we will consult with one before doing anything).
Any obvious flaws? Terrible idea?
I'm guessing that we should wait six months after the new job, for the drop in income to be fully reflected, or can they look at the new job paperwork and go from that rather than last six months? Should we wait a couple months into the six months at the new job, to reduce the length of time the late payments are there, before filing, to reduce calls and potential law suit problems? Or just get it over with and save up from not paying for longer before ch13 payments kick in? Or...?
Ack, feel like such a failure for not being able to protect my family right and not following through on comitments :-(
--randy
Comment