$300,000 In Unsecured Debt

[skip1963]

What is the name of your state?What is the name of your state ? New York

I owe about $300,000 in credit card debt. I am 60 to 120 days behind on most of my cards, some are already in collections. I have a mtg 105,000, I am up to date on my mortgage . Home value $350,000.

For the last 3 years I have been living off my credit cards, doing the balance transfer game. I am 42 years old, married. 3 kids. I work for a Co. as an outside salesman. I have been unable to work consistently for the last 3 to 4 years due to an illness.I will make about $10,000 this year. I am going to be able to go back to working on a full time basis, & will look for a 2nd job as well..

Wife cannot work, has Multiple Sclerosis, Not on disability. With no health Insurance, I don't know what I will do , when I didn't have prescription coverage, 1 of her meds. is Avonex cost $250.00 per week(an injection)


My bills consist of : MTG $1,300
Health Ins. $ 700 (can't pay, so will be cancelled)
credit cards minium pmt $ 6,000 (an estimate)
Phone, Internet,utility $ 500
food $300
Prescriptions(Co Pays) $200

Auto expenses:
(loan not in our $600
names), but we pay bill..

Misc. bills $200
________________________________________________________________

Total: $9,800


Some of my options are to sell home, use the estimated $240,000 in Equity to payoff as much as I can to the creditors. Leaves me with nothing..To rent where I live makes no sense, 2 bedroom apts.going for $1,200 to $1,500. So we would have to move out of state. My wife does not want to move,only as a last resort, her family, friends,are here, all her doctors & on days where she is having trouble walking, it's nice to know if she needs help, someone is around.

Can't refinance, no income to show, credit scores are to low for a No Doc Loan. Can't borrow from any Family or Friends, (not an option)..

File a BK seems like the only way out. Will I be able to file a Chapter 13, without a steady Income ??

I came to this board first to get some feedback first. Then I will be looking to speak to a couple of BK Attorneys too see what they feel is the best way to go. Any advice is greatly appreciated..

[Ladynred]

You're in a tough spot. You've got far too much equity for a Ch 7, the Trustee will take the house. Ch 13 would be your best bet, but you MUST be able to make the plan payments or your case will be dismissed and you'll be right back where you started.

[Rhubarb297]

Originally Posted by skip1963

What is the name of your state?What is the name of your state ? New York

I owe about $300,000 in credit card debt. I am 60 to 120 days behind on most of my cards, some are already in collections. I have a mtg 105,000, I am up to date on my mortgage . Home value $350,000.

For the last 3 years I have been living off my credit cards, doing the balance transfer game. I am 42 years old, married. 3 kids. I work for a Co. as an outside salesman. I have been unable to work consistently for the last 3 to 4 years due to an illness.I will make about $10,000 this year. I am going to be able to go back to working on a full time basis, & will look for a 2nd job as well..

Wife cannot work, has Multiple Sclerosis, Not on disability. With no health Insurance, I don't know what I will do , when I didn't have prescription coverage, 1 of her meds. is Avonex cost $250.00 per week(an injection)


My bills consist of : MTG $1,300
Health Ins. $ 700 (can't pay, so will be cancelled)
credit cards minium pmt $ 6,000 (an estimate)
Phone, Internet,utility $ 500
food $300
Prescriptions(Co Pays) $200

Auto expenses:
(loan not in our $600
names), but we pay bill..

Misc. bills $200
________________________________________________________________

Total: $9,800


Some of my options are to sell home, use the estimated $240,000 in Equity to payoff as much as I can to the creditors. Leaves me with nothing..To rent where I live makes no sense, 2 bedroom apts.going for $1,200 to $1,500. So we would have to move out of state. My wife does not want to move,only as a last resort, her family, friends,are here, all her doctors & on days where she is having trouble walking, it's nice to know if she needs help, someone is around.

Can't refinance, no income to show, credit scores are to low for a No Doc Loan. Can't borrow from any Family or Friends, (not an option)..

File a BK seems like the only way out. Will I be able to file a Chapter 13, without a steady Income ??

I came to this board first to get some feedback first. Then I will be looking to speak to a couple of BK Attorneys too see what they feel is the best way to go. Any advice is greatly appreciated..

Do yourself a favor and do the Chapter 7. You are exactly the type of person the BK laws are made for.

You might lose the house (depends on the law of that particular state) but you'll be in far better financial position.

Also, get really good BK attorney. You have the assets to pay for one up front. It would be a great investment.

[Ladynred]

He's got over 200K in equity on the house NY exemptions won't even cover 1/10th of that. He would definitely lose the house to the Trustee.

[enjay]

He has 300K in debt, makes 10,000 per year, and hasn't been able to work in several years. There's no way he can fund a Chapter 13, even if he were to get a decently paying job within the next couple of months. I'd be very concerned about the balance transfers and how the trustee will take that.