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  1. #1
    Join Date
    Jun 2011
    Posts
    1

    Unhappy Massive Debt, Depleting Resources

    My question involves collection proceedings in the State of: Wa

    Title says it all, about 45K in cc debit, 75 on mortgage, 10K on rv.

    been unemployed over 2 years, no longer getting ui benefits, living off stock market cash account then on to ira account.

    Have house , rv, car and few other assets. At some point I will be forced to default.
    What are my options, should I sell every thing and just walk (or drive) away?

    I can survive 6 more months before accounts are depleted, I'm thinking I should sell as much as I can to extend time period, close all accounts, pay by cash and default on all the cc account and "hide" until statute of limitations expire. Not a pretty sight but my options appear limited.
    I spoke with Bk attrny and was told I don't qualify for ch 7 due to number of assets.


    suggestions

  2. #2
    Join Date
    Mar 2009
    Location
    Key West, FL
    Posts
    2,350

    Default Re: Massive Debt, Depleting Resources

    I would suggest selling the RV, probably the thing you need the least. At least right now, you can take your time and get a decent amount, rather than having it be a fire sale. Pay that off and perhaps have a little left over. Check WA law and see what is exempt from execution. Just depends if you think you can keep your home, what is important to you, etc.

    You don't qualify for Chapter 7 either due to the small amount of debt. You need 350k of debt to justify a Chap 7. It would get converted to a chapter 13 by the court most likely. Perhaps a long term unemployed can get a chap 7 these days, but judges don't like doing that.

  3. #3
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: Massive Debt, Depleting Resources

    Stop dipping into your retirement funds. If you need to use or sell off assets to pay your ongoing bills, use assets that are not exempt. If you can sell your stuff, get out of debt, and have some money to pay to support yourself during your job search, that's not such a bad outcome. Your other options appear to be to spend down your assets until you qualify for Chapter 7 or to get a job and consider Chapter 13.

  4. #4

    Default Re: Massive Debt, Depleting Resources

    Yeah to qualify for a chapter 7, you pretty much have to be poor.
    Wouldn't selling the RV at least buy you a couple more months? I mean whether you used your retirement money or not?

    Thing is, since you have NOT filed for BK yet, your assets are still totally yours. If you tried to sell off assets AFTER filing, you could run into problems. Just don't sell the RV and then file for BK right away cause someone will wonder where all that money went so quick. Well same for whatever other assets.

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