Author Topic: I need some guidance about what to do please  (Read 1353 times)

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I need some guidance about what to do please
« on: May 27, 2012 05:49:22 AM »
We may, or may not have to file BK in the next 3-4 months My feeling is right now leaning toward we will... but we may have to postpone it, and suffer through so to speak.

Here is a little info about whats is going on... Between me and my wife, we have aprox 19-20k in CC debt between several different cards. She has not worked in the last couple of years and with 1 2 year old, and another kid due in july she has no plan to go back....the good thing is, since we are low income, we have state helth insurance that is going to pay all the medical bills. The min payments on our CC's are around $600 a month.... I only make 600 a week before taxes (around 480 after) I can not do it any more...I also have some business income, that ranges from 400-1000 a month... most is written off at the end of the year though. but even with that, and not counting any write offs... and with my income in Arkansas, we still are well within the income to file chap 7.

Now, the issues:
We bought a house in feb, all is good on it, we are current and intend to keep it regardless. The issue is, we had bought a trailer house and 1.5 acre of land from my grandma before, and thats where we lived for around 5 years before we bought the house. Also, the house we bought from my grandma (we had a owner finace mortgage set up on it for 11k but, after paying around $1300 to $1500 she canceled it and just gave it to us) it adjoins my mom and dads land.... and my grandma lives in a trailer that pretty much sits in the middle (half on one and half on the other) but, that has since been put in my mom and dads name as far as I know. but on to the point...After we bought this house that we live now, we did some trading with my mom/dad Basically we gave them the trailer house (80's model and in very poor condition) and 1.5 of land in exchange for a 2000 ford f150 pick up truck... I had been driving it anyway since my wife crashed our 2007 xterra and I just told them, won't you take the house for the truck as a even swap. we made everything final in march. however, I remember when I signed the title at the title company it just said sold for $1. We do have a bill of sale we made up though, basically saying it was a trade. All this was done before I really started even considering bankruptcy (though I may should have been) But since I have been doing research I have seen abounch of stuff about transfering assets before a bk and it causing a problem. I am just wondering If I do end up having to file (It wouldn't be before the 1st of sept if we did) is this really going to cause a problem if so what can i do about it?? I do not want them to lose the land since it adjoins them... I have no intention of taking it back, or anything such as that.

Second issue is, My wife is not named on the mortgage... But arkansas allows Fed Exemptions. Even though she is not on the mortgage, since we bought the house well after we are married will she be able to claim the homestead exemption also?

I should also add that we have very few assets... the house appr for 62k when we bought it loan is for 58k
we have a 2000 ford f150 with 212k miles on it
a 1998 mustang gt convertible with 138k miles
a 2007 honda rancher 420 4 wheeler
a riding mower, garden tiller... a couple tvs but nothing of great value

(Hers) Tractor Supply (citi bank) $2800 - Did not make payment due 5/21
(Hers) <Removed> 1 aprox $400 - Will miss payment due 6/9
(hers) Cabelas Visa aprox $2200 will kiss payment due 6/16
(her) Bill Me Later Aprox $1400
(Me) Lowes- GE Money Just over $3,000 - missed paymeny due 5/19 (may try to make 1 more on this one)
(Me) Natl Home - Ge Money $1200 will miss payment due next month.
(me) Wal Mart - Ge money - $2300 will likely miss payment next month
(Me) AMEX - $1600 Missed payment due 5/21
(Me) Bill me Later - $1000
(Me) Visa- Chase - $1600
- I feel like I am forgetting a couple...

right now, we are current on all cards, but are going to have to stop paying them and try to save a little money

I don't know if we should go ahead and file around sept, if the above is not an issue... or If we should wait, and see who sues, and who just writes it off.... but, with my income, we can just barley get by... pay the house, the light bill... put food on the table... etc... and the business income is not a given, it could go away... or it could grow (but most likely will stay the same through the end of the year)

I just hate the thought of all the collection calls... and I do have to use my home phone for work, not to mention the fact of will be having a new baby in the house. But, I am not sure I will have the time to fight all this, If we do end up getting sued...

Sorry for the long post....Thanks in advance for any help...Nothing is ever easy for me... :soapbox:
« Last Edit: May 27, 2012 05:54:28 AM by shotgun7 »


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Re: I need some guidance about what to do please
« Reply #1 on: June 07, 2012 08:02:04 AM »
Wow, that was allot to digest. I will try to help you the best I can.

1) It is important to get at least 6 months or more out before filing BK.

2) Do not use you CC cards anymore than usual. Best to stop all together.

3) Once you stop paying debts do not make any major purchases at all.

4) Your assets listed will not be taken away in BK from my experience.

5) Keep paying your mortgage on time and let your lender know you want to Reaffirm your Debt with them. This will cost you some legel fees to get them to do for you but they will be glad to bend you over for the piece of paper stating you agree to exempt them from BK.

6) The trade with your parents can be explained in front of the trustee in you BK and should not be a problem if you wait another 6 months and follow 2 & 3 above.

7) I advise you to change your phone number if you are going to stop paying debts as the collectors will be overwhelming in about 3 months. Obviously do not update this number with any reporting creditors. This will also force them to send all collections in writing.

I am sure I missed something but these items are important to know.


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Re: I need some guidance about what to do please
« Reply #2 on: June 17, 2012 07:59:12 AM »
Thanks for the reply, And I apologize about the long winded post and it kind of running together some.

However, We are probably going to have to end up waiting over a year and a half to file. My wife has some medical issues that have come up and she will need treatment for, however she is about to have a baby so we can't do anything right now and it will be pretty expensive as with my insurance I have a 3k deduct.

So, If we start treatment before the end of this year, we will quickly hit that and then it will reset next year.

 I think the plan is changing more to, stop paying and hope we don't get sued and if we do defend to the best of our ability.

The 2 I am most worried about, atleast within a year or less are Citi (3k balance) and Amex (1600) They seem sue happy in my area. Chase seems to have slowed down I think they got in trouble. GEMB seems to sell to JDB. I think for the most part the others do the same. Those 2 OC's seem to really go after people though.

My Wife, with the CITI card is pretty well judgement proof. (no job, not on the mortgage and can quickly be taken off all bank accounts)

Maybe we can make it, It just does not make sense to file now if we know, or atleast there is a good chance of racking up 6-10k in medical bills over the next year or year and a half.

I did change all the phone numbers on my accounts to a new google voice number, maybe that will help. AMEX had called my work 3 times this week I found out when I returned. I am not sure how they got this number as it was no where on my profile. I called them and told them never to call there again they tried to give me the run around but the girl finally got premission from her boss to delete the number. I again gave them my GV number and told them that is the only number they have premission to contact me at... for all the good it will probably do.


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Re: I need some guidance about what to do please
« Reply #3 on: June 18, 2012 01:46:42 PM »
Make sure that you have everything you dealt with your parents well-documented so you can properly establish the dates if challenged.