Trying to work our way out of it.

[Kkole425]

Well my husband is looking to buy a dental practice that he has been working at the last 4 weeks. Dentist died and it is going to go at a really good price. We were told not to file BK no matter what because we would never get any loans. So the last couple of weeks I have been putting every penny we have on past bills. Started with the smallest monthly payments and now I am in the next to smallest. I have not even come close to the big ones yet. We do have some money coming in which is nice because 4 weeks ago we did not have money to buy food. Can we make it back out of this or are we just kidding ourselves? How nice are the credit cards going to be when we slowly start making small payments? They are all very understanding when you are not working but now we are working but so far behind it is going to take a while.

$300,000.00 in credit card debit and back taxes. Wow when it is on paper I think what a dumb ass I am.

[HHM]

With that much debt, you can also kiss your chances of business loans good-bye.

Without more info, I would probably say you are kidding yourself. When you say small payments, do you mean minimum payments, or do you mean you are making token payments that are less than the minimums.

Let's put it this way, unless you can pay at least $8,000 per month toward your credit cards to pay them back within 60 months (that is what it will take assuming 18% interest on your cards), then you are kidding yourself as far as paying this debt back.

[Kkole425]

Without more info, I would probably say you are kidding yourself. When you say small payments, do you mean minimum payments, or do you mean you are making token payments that are less than the minimums.


I have been making at least the past due amounts and paid off 3 cards so far this past week. I have about $2500.00 a week to pay towards cards. If I can get the small ones before my 4 big ones want money now I should be able to do it. I need about 6 weeks to catch up and pay off the small ones so I can afford at least the minimums and then some on the big ones.

I don't think we can get a loan either but we do have some property to put up against it and we are going into it with a business partner. A money man so to speak. It will make a big difference on our profits if we can put some money into it to.

We had never been late or missed a payment on anything til 3 months ago. Then things fell apart. I do have much more money because I am living on a budget and not spending on anything but what we need.

If things don't work out and we do need to file does it look bad that we have been paying on these cards? I have made sure that we are paying in payments not more than $400.00 each. I am also trying to equally pay everyone that I can right now.

[DeadManCrawling]

When you say paying in increments of less than $400 each, what is your intent?

If you are trying to avoid the bankruptcy threshold for preferential payments, that will not work.

The threshold numbers for BK purposes are determined in a different fashion, and use an aggregate number. That is, they calcualte the TOTAL paid to creditors over a period. Three months perhaps? So, in a 3 month period, you would have paid a creditor as much as $6,400, which is far above the threshold for preferential payments.

That may not matter, though, as long as all are paid equally, even at a higher number than normally permissible.

Apologies if I misunderstood your intent.

If you have $2500 per week to work with on creditors, you stand a fighting chance of catching up. But what if something goes wrong? Something seems to ALWAYS go wrong.

I would hate to get within 10k or so of finishing and see it all go haywire. I gues even then, though, you could default and settle.

Good luck on this, and I do hope it works out for you all!