My situaion

[brokeman79]

My situation is sort of complex and Im sure alot of people have heard it before. I am 28 years old, own 3 homes, a small business which is going under, and have lots of debt.

I have the following
Home 1 - Owe 280k Worth 270k Rent it out for 1800 MTG payment is 2400
Home 2 - Owe 220k Worth 220k Barely Rent for 1200 MTG payment is 1400
Home 3 - Owe 95K, worth about 95k rent for 900 MTG payment is 900

I co own all of these homes with my unemployeed brother. We had a successful contracting business but when the real estate market busted it all went down hill.

Business Credit
Home Depot CARD owe 18000k WIll be 90days past due in 23 days

Credit Card Debt
10000 Chase Line of Credit
13000 GE LOC
3000 Bank of America CC
3000 Discover Card
10000 Citi Card
10000 Chase Card

Car Owe 6000k, pay 350$ per month, never missed a payment

I make around 2300 dollars a month and moved back in with my parents because I am not making ends meet.

I am about to have a new job making 40000k per year and can work my other job part time.

I have not missed a credit card payment yet, but am on the verge of emplooding. I am losing sleep and getting very agitated at my situation.

I am debating filing but don't know which one to file, and what would happen to my brother since we co-own these homes together.

Any tips, hint, advice are welcome..

[keepmine]

Your brother will be on the hook for the homes if you file bk.
Were I you, I'd file a Chapter 7 in a heartbeat and once your brother gets back on his feet, he should follow suit.

[MomIcantFindmy]

You situation looks similar to mine. Have you spoken with an attorney regarding the median income and the new job? You could end up over the median income after the new job and be filing a 13 instead of a 7.

[JollyGG]

What keepmine said.

It sounds like the buisness is eating both you and your brother alive.

You didn't say if you have any dependents or are married, or what state you live in. A lot of that will go into if you can file a chapter 7 or a chapter 13.

It sounds like it may be time to schedule a pre bankruptcy counseling class and a few free consults with lawyers to see where you stand.

[Flamingo]

You are at that stage where reality finally hits and pushes us toward investigating BK because the situation will just not go away and just become worse causing you to "spiral down that black hole" as I call it to finally make you file. You can get physically ill worrying about debt as you are finding out. Do yourself a favor and have a consultation with a BK attorney - it may be wise to take your brother with you. That way you will know exactly where you stand and what you can do in the state in which you reside. Most attorneys give free, initial consultations. If you don't know where to start to find a good BK attorney, ask friends/family for referrals or call your State Bar Assoc. for BK attorney referrals in your area. Call and make an appointment and take with you a complete listing of all your bills, monthly payments, sources of income, paystubs, asset listing and your most recent tax returns and information as to the houses you and your brother own including any appraisal information.

Best of luck to you...

[uofaguy]

It looks like the majority of your debt (rental homes) is business debt vs. consumer debt (credit cards). If so, you are in the same situation I and some of the other posters are/were in - - feeling the effects of the real estate market bust.

I would recommend scheduling free consultations with at least 5 bankruptcy attorneys that specialize in business bankruptcy about pursuing a business Ch. 7 BK. Also, search this board to learn as much as you can. I met with 9 different attorneys. Most tried to push me to a Ch. 13 -- likely because it is more fees for them or they were ignorant of the new law. I was over the median income in my district - however, the means test does not apply. Schedules I & J, however, will apply.

A business BK attorney will probably cost you more than some of the BK mill attorneys that handle hundreds of BK's a year. However, this may be your best bet to land a Ch. 7 - if you & the attorney feel BK is your best option and you are not interested in repayment of some/all of your debt over the next 5 years in a Ch. 13.

Good luck.

[JRScott]

Is this mostly non consumer debt (business debt) or consumer debt?

It appears mostly non consumer however you don't mention if the credit cards are the business or your own.

Like the others said start scheduling some appointments. If you let it go to long the sleep deprivation can lead to depression and a host of mental and physical problems. If your starting down that road best to just see what you can do. Most attorneys offer a free consultation, you'll want to see 3-4 before choosing and as suggested above it this is primarily non consumer debt then you need someone experienced in business bankruptcy. They might cost a little more but would be worth it.

Is the car in your name or business?

[justplaintired]

It sounds to me like you're a perfect candidate for BK. You sound like I was before we made this decision. Couldn't sleep anymore. Worrying non stop. Best bet get a few free consulations with some attorneys and see what your options are. Either C7 or C13 is better then how your living now.

Good luck and it sounds like you brother should be talking to an attorney just as soon as he gets a job. This is no way to live, way too much stress.

[brokeman79]

I live In MarylanD, im 28 have no wife, kids, just 2 dogs. Most of My debt is associated with my business but is on personal credit cards with the exception of the Home Dept cards. I worry about this alot, call me stupid but I worry about what a future spouse with think, my friends or family if I filed chapt 7 or 13. If I could somehow erase this debt and not have to live with these mistakes I made it would be such a blessing.

Another concern I have on filing is I have extentions on my tax returns, I have 3 huge boxes filled with recepits, bills etc. I work 12-15 hour days and just can not seem to find time to do my taxes.

I am going to file for a loss last year, and I do not know how in depth the Govt goes looking into that.

The real estate market hurt both of my business's my real estate business, and my contracting business.. Just look how hurting home depot and lowes are right now..

thanks for your help

[JRScott]

With you working already 12-15 hours a day I'm not sure there is a way to avoid bk.

I would consult with a lawyer. Since you used personal cards for business expenses you might put that forward and see if the lawyer thinks you'd be still able to file for a business bk.