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  1. #1
    Join Date
    Jan 2009
    Posts
    5

    Default Almost All Secured Debt

    My question involves bankruptcy in the state of: MI

    very little unsecured debt, and that's only charges from several months ago for some surprise expenses. My wife and I were generally adverse to unsecure debt.

    house (primary and 2nd mortgage), easy 75-90k upside down
    boat, 10k upside down
    my car 10k upside down
    visa card (same bank as car note, but not our primary account) 4k
    all the above are in my name alone, both ownership and debt

    wifes car, 5k upside down, her name, with me as co-signer
    her visa - essentially zero balance

    I suddenly lost my good paying job in this wonderful economy. I have no expectation of anytime soon returning to work, and when I do, expect to see a substantially lower salary. Without making house/my car/boat payments, we'll survive a year before things get really ugly.

    My attorney (not BK) made several recommendations.
    immediately stop making payments on all of my fixed assets and visa
    He would recommend a BK attorney in about 12 months, said I'm far from needing to file.
    Hinted that some of clients have made credit purchases 120 days ahead of BK filing, and had the debt discharged.

    If there was any way to keep my car, it would be my preference, but he said it would be illogical to lose 10k on an inanimate object.

    What is the status of our joint investment account? Should I use that to pay our bills, or will that go to satisfy my debts?

    Is Chapter 7 the logical answer?

    I know I'm way ahead of the game, but want to help plan through this so we can get on with rebuilding our life.

  2. #2
    Join Date
    Apr 2008
    Location
    Texas (Dallas area)
    Posts
    1,404

    Default Re: Almost All Secured Debt

    Quote Quoting bankrupt
    View Post
    My question involves bankruptcy in the state of: MI

    very little unsecured debt, and that's only charges from several months ago for some surprise expenses. My wife and I were generally adverse to unsecure debt.

    house (primary and 2nd mortgage), easy 75-90k upside down
    boat, 10k upside down
    my car 10k upside down
    visa card (same bank as car note, but not our primary account) 4k
    all the above are in my name alone, both ownership and debt

    wifes car, 5k upside down, her name, with me as co-signer
    her visa - essentially zero balance

    I suddenly lost my good paying job in this wonderful economy. I have no expectation of anytime soon returning to work, and when I do, expect to see a substantially lower salary. Without making house/my car/boat payments, we'll survive a year before things get really ugly.

    My attorney (not BK) made several recommendations.
    immediately stop making payments on all of my fixed assets and visa
    He would recommend a BK attorney in about 12 months, said I'm far from needing to file.
    Hinted that some of clients have made credit purchases 120 days ahead of BK filing, and had the debt discharged.

    If there was any way to keep my car, it would be my preference, but he said it would be illogical to lose 10k on an inanimate object.

    What is the status of our joint investment account? Should I use that to pay our bills, or will that go to satisfy my debts?

    Is Chapter 7 the logical answer?

    I know I'm way ahead of the game, but want to help plan through this so we can get on with rebuilding our life.

    Actually chapter 7 seems like a great choice and do it NOW not in a year. This site can put you intouch with a bk lawyer in your area.

  3. #3
    Join Date
    Dec 2007
    Location
    Ohio
    Posts
    2,006

    Default Re: Almost All Secured Debt

    Did your attorney give you a reason as to why wait a year? Is it bc you have money in the bank to pay your current bills?

  4. #4
    Join Date
    Jan 2009
    Posts
    5

    Default Re: Almost All Secured Debt

    He didn't come right out and say it, but think he was waiting until I burned through the cash and have some collections. The biggest question is how long will I be out of work, and in today's economy, I'm estimating 12-18 months and at a considerably lower income level then I was at a week ago. Problem is, I'm totally current on all my bills.

  5. #5
    Join Date
    Dec 2007
    Location
    Ohio
    Posts
    2,006

    Default Re: Almost All Secured Debt

    Your obsticle here is that you qualify for Ch 7 now with no income. If a job presents itself, depending on your income, you may no longer qualify for Ch 7. Bankruptcy isn't exactly a quick process.
    And without coming right out and saying it, thats exactly what he meant. Keep great records of where your money is going from now until you file if you do. You will have to list all your collections in your bankruptcy and risk surrendering them.

  6. #6
    Join Date
    Jan 2009
    Posts
    5

    Default Re: Almost All Secured Debt

    Quote Quoting gigirle
    View Post
    You will have to list all your collections in your bankruptcy and risk surrendering them.
    What does that mean?

    Keep in mind I will be collecting unemployment for 6-9 months and providing some income. Does it make sense to wait until I'm not going to have any income vs the unemployment income? My wife remembered something from our visit with our personal attorney, he said we had to have a judgment against us to actually file.

    I do not have a great desire to keep the house or boat, although not thrilled with moving, especially since our youngest is a sophomore in HS.

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