My husband's company went down the drain a couple of years ago. I make a large income as a consultant and support both of us. He has a couple of lawsuits from business creditors that will end up as judgments but the creditors won't be able to collect on them. The house is under water and he has no job from which to garnish wages, and he has no non-exempt assets laying around. We don't plan on leaving the house in our lifetime so we aren't concerned about the judgment liens. I do earn wages from multiple consulting companies however from what I understand a spouse's wages can not be garnished, and I don't keep any money in any joint accounts. So I'm not concerned about his creditors.
I co-signed on a business loan with my husband, but it's been two years since the business closed and the last payment was made and the bank, which has financial problems of its own, has yet to send any collection letters. Also, the landlord has filed suit, claiming $650,000 for unpaid rent due to six years left on the lease. I personally guaranteed that as well, way back when. We countered and the landlord has not pursued the case in the last six months. I now believe that he was hoping for an easy settlement and won't pursue expensive litigation.
Four months ago we consulted with a bankruptcy attorney to discuss our options. We had him draw up the forms to file a non-consumer chapter 7 but then decided we were not in a position where we had to file bankruptcy. We aren't "broke," if you don't count the business debt. In addition, I'm concerned that my potential for future consulting jobs will be at risk if I file. It simply doesn't make sense for me to file.
We are remodeling our house, which has been an ongoing project for over a year now. We don't care that it is underwater. We can easily afford the payments and aren't leaving it, however it is in need of repairs. In the last three months I have charged around $20k on Home Depot and other credit cards, all for remodeling expenses. I'm about to use another $10k line of credit I have on kitchen and bathroom cabinets. I have excellent credit, enough money coming in each month to cover all of my expenses and I pay more than the minimum each month. I don't intend to stop making payments.
Here's where I'm concerned: my outlook may be different in the future. If the two business creditors pursue litigation and win judgments (I won't go down without a fight) there is no way I can pay that debt. I will lose the consulting jobs if my wages are garnished and I will have to file bankruptcy before I can let that happen. If things change and I end up filing at some unknown time in the future, I'm concerned these home improvement charges will be deemed luxury purchases and my bankruptcy thrown out for fraud. Am I needlessly worrying? I know not to file within 90 days of a charge. But how long after that do I need to wait, since these charges are so large? I need to get these home repairs completed as I'm not willing to live with drywall and exposed wiring and the construction mess any longer. It doesn't make sense to me to not complete these projects due to the small chance that I might have to file bankruptcy at some unknown time in the future.
I co-signed on a business loan with my husband, but it's been two years since the business closed and the last payment was made and the bank, which has financial problems of its own, has yet to send any collection letters. Also, the landlord has filed suit, claiming $650,000 for unpaid rent due to six years left on the lease. I personally guaranteed that as well, way back when. We countered and the landlord has not pursued the case in the last six months. I now believe that he was hoping for an easy settlement and won't pursue expensive litigation.
Four months ago we consulted with a bankruptcy attorney to discuss our options. We had him draw up the forms to file a non-consumer chapter 7 but then decided we were not in a position where we had to file bankruptcy. We aren't "broke," if you don't count the business debt. In addition, I'm concerned that my potential for future consulting jobs will be at risk if I file. It simply doesn't make sense for me to file.
We are remodeling our house, which has been an ongoing project for over a year now. We don't care that it is underwater. We can easily afford the payments and aren't leaving it, however it is in need of repairs. In the last three months I have charged around $20k on Home Depot and other credit cards, all for remodeling expenses. I'm about to use another $10k line of credit I have on kitchen and bathroom cabinets. I have excellent credit, enough money coming in each month to cover all of my expenses and I pay more than the minimum each month. I don't intend to stop making payments.
Here's where I'm concerned: my outlook may be different in the future. If the two business creditors pursue litigation and win judgments (I won't go down without a fight) there is no way I can pay that debt. I will lose the consulting jobs if my wages are garnished and I will have to file bankruptcy before I can let that happen. If things change and I end up filing at some unknown time in the future, I'm concerned these home improvement charges will be deemed luxury purchases and my bankruptcy thrown out for fraud. Am I needlessly worrying? I know not to file within 90 days of a charge. But how long after that do I need to wait, since these charges are so large? I need to get these home repairs completed as I'm not willing to live with drywall and exposed wiring and the construction mess any longer. It doesn't make sense to me to not complete these projects due to the small chance that I might have to file bankruptcy at some unknown time in the future.
My credit cards will be put to rest after this last purchase and my plan is to have them all paid off within the next two years. I get paid a chunk of change at a time, and I already have a plan to knock them all out. 
341 on 10/20
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