BK question

[dudley3874]

Good evening all, after many months of attempting to hold on, we are looking into BK.

Background:
Income is holding steady now with my new job, around $110K before taxes.
Debt- unsecured around 90K, have been served with one summons in Civil court.
House is 50K upside down, owe 207K estimate of worth compared to house sold next door is how I came up with the figure.
Home equity loan of 23K.
Vehicle #1 loan balance of $15K Blue book trade-in around $13K,
Vehicle #2 loan balance of $13K Blue book trade-in around $10K.
Boat loan balance of $65K NADA around $41K.

We are not able to catch up, looking into BK.

We live in Florida

Questions:
1. Do we qualify for BK?
2. Can we keep the house, we are not at the age we can buy another home after a BK.
3. Can we keep our vehicles?
4. Can we keep the boat or is that automatically gone as a lux item?

Just doing some pre-investigating to see what to do.

Thanks,

D

[dudley3874]

anyone care to shed some light?!?

[StartingOver08]

You sound like a good canidate for a Ch 13, especially if you want to strip that second mtg. Is the value of your home worth less than the first, if so, then you can strip the second it in the BK. You won't actually know the value unless you get a CMA with an experienced agent first.

As to keeping the house and vehicles, it sounds possible. The boat, no. There will be others that can give more info on your ch 13. Have you filled out the means test yet and schedules I and J so you know how much disposable income you are showing? That would be the first thing to do.

[forgotten]

1) Yes, you sound like you would be a Chapter 13.
2) Yes, if your first mortgage is more than the value of your home you can also strip the second mortgage.
3) Yes, provided you and your wife both drive.
4) Unless you make your living using the boat it is not considered necessary for your reorganization, you would not be able to keep it unless you are paying back 100% to your unsecured creditors in your plan.

[dudley3874]

StartingOver08 & Forgotten,

Thanks for the response, I have not gone through the means test and the schedules yet, just looking for an "eyeball" opinion. I plan on attempting the means test this weekend. Also, looking to figure out our monthly bills.

In regards to the Vehicles, both of us drive, one payment is $332/mo and the other is $659/mo. We have tried to sell the higher payment vehicle, but no luck. On a side note we sold off our 'vette. Sign of the times........

Thanks again, if I have any more questions, I'll post more.

Happy Holiday's to all!

D

[andy158]

If you go into bk13, let the boat get repo'd. I did the same with mine as well as 2 motorcycles. Bought them when times were good for family enjoyment. Boat became an $18k lawn ornament when we couldn't afford to use it anymore. Still made payments on it for 3 years. I will never buy new "play" things again through a dealer that require a loan. There are thousands up for sale by personal owners used and real good prices when this 5 years are up.

[frogger]

I will never buy new "play" things again through a dealer that require a loan. There are thousands up for sale by personal owners used and real good prices when this 5 years are up.

Excellent words of wisdom. If you can't pay for a "toy", then you just don't need it. There are boats running out the wazoo now and no buyers in our area. If I were in the market for a boat, I could buy one dirt cheap.

Same goes for RV's, campers, 4-wheelers, etc. Buy private, buy cheap, pay cash.

[dudley3874]

Thanks all, just needed to hear words of encouragement...... Pride is a hard thing to get out of the way of clear vision.... I am going to work on the Means test and the schedules, looking forward to my appt with the BK attorney on Jan. 8th.

HAPPY HOLIDAYS to all.

See you after Christmas

D