Filing, but don't know when

[estreeter34]

New here. We got caught up in the real estate market and built a new house (father in law was builder, and thats another story!)
Ended up keeping our prior house as the market crumbled while building the new home. Rented old house out at a monthly loss (lost $400/mth for almost 2 years), then renter moved out unannounced and trashed the place. Oh, and we are way upside down with the market being so bad now. Also have credit card debt, one car loan (2 cars), revolving credit account on Motorcycle and also on A lawn tractor. We have first and second mtgs on both houses and as of now everything is on time, but we are screwed with no renter a trashed house and being upside down. Talked with an attorney and are meeting him next week.
We are sort of planning for all the stuff to hit that we see coming. To top it off I am starting a new business and had already put in my notice at my desk job before this all hit. I think the good in that is my income will go down and we will meet the means test in a few months...
Any advice is appreciated.
Thanks

[Flamingo]

You've already done what should be advised and that is make an appointment and see an attorney for a proper evaluation of your situation. The economy downturn and subprime mortgage situation has taken a toll on many people in many ways forcing many into bankruptcy and foreclosure. Retail businesses are suffering laying more and more people off. The best thing to do at this point is get a full legal evaluation of your situation and find out what you can do from there. Best of luck to you.

[no_it_all]

I smell a no asset Chapter 7 coming. If that is indeed what is looming, then all you have to do is start some tactical and strategic planning. Since you really don't own anything, you will have very little to lose..(or protect for that matter)...Good luck BTW starting a business at this time is probably a really dumb idea...no offense..

[estreeter34]

Thanks for the reply Flamingo. I am just going a bit crazy waiting right now. I have never been in this situation before, so I don't know what to expect. I have found lots of information here!

[estreeter34]

I smell a no asset Chapter 7 coming. If that is indeed what is looming, then all you have to do is start some tactical and strategic planning. Since you really don't own anything, you will have very little to lose..(or protect for that matter)...Good luck BTW starting a business at this time is probably a really dumb idea...no offense..

The business was started prior to losing our renter...And I have been planning and have that part under control! A third party to finance the minimal equipment i will need and do a rent/lease agreement. I have clientel all lined up.
We would like to protect the house we are living in and our vehicles.

[no_it_all]

The best thing to do at this point is get a full legal evaluation of your situation and find out what you can do from there.

Yeah, and in the <mean time> stop paying all your debts and start stuffing the mattress with some C A S H....Hey, it couldn't hurt! Especially if waiting for <full legal evaluation> ...

[no_it_all]

Look at the big picture...play <pretend>....Pretend you have only one car loan and one mortgage and unsecured debt is gone..does it help? Do you have a lot equity in your properties (vehicles, home)? If so, it may be difficult to <exempt> those. If not a chapter 7 liquidation may work. How steady is your income going to be? Once you go BK you have to wait a LONG time to do it again..so use this silver bullet wisely grasshopper..

[estreeter34]

Met with an attorney. He advised us to let second home go to foreclosure and see if bank will do a deed in lue of foreclosure?? Then watch everything else and if need be file Ch. 7 in a few months. Based on our income and the debt we have going forward.
We both agree with him, but I would appreciate any input here as well. Thanks.

[estreeter34]

We are waiting patiently for the proverbial you know what to start hitting the fan! We have made the decision to let our rental house go to foreclosure and probably file bankruptcy in the next 6 months or so. On one hand I feel guilty and the other I feel like we need to plan, plan, plan and hopefully come out of this better off.

[brokeNconfused]

sorry to Hijack this thread... i am not giving back a home, but got caught in the subprime morgage. My arm starts in 2 years and i have already decided to act now. i have been living with about $100-$200 left over each month. and that is before diapers and kids school/sport expenses. My attorney said toquit paying too, but i have used them before i retained her so i am not sure if they will consider it luxury or not. I have noticed i get more $$$ in the bank and have used it to buy paint for our house, which has not equity, and plan on some yard supplies, feralizer, grass etc. we also just bought a car for 18k and cut our current payments down more than half witha total savings of 10k. I plan on chapter 13 so i can refinance and hope to be a reasonable payback. planning ahead is best here i am learning.