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BK Options

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Regular Contributor

BK Options

Hello. We have two attorney BK consultations next week. It's a decision we have not taken lightly and have thought about for months.

Specifically I'm wondering what our options will be. We have about $100k in credit card debt, $90k in auto loans (2 cars), $90k or so in SL debt and a $180k mortgage. We are just now coming up this month on our first 30 day late payment. Otherwise we had been able to keep afloat.

Unfortunately my husband lost his job a week ago. He was making $90k. It's unlikely we will receive that kind of salary again. If he does find a job, it will likely be a $13k - $15k paycut. I make $84k.

Even if my H did not lose his job, we would have needed to file Ch. 13. My student loans were in forbearance while I was in grad school. I just finished last month. With the new payment, that would have set us over the top as we were already living paycheck to paycheck. I also don't anticipate my salary increasing as I work for the government and my degree isn't a necessary requirement for my job.

Right now per my research the courts would look at and consider my H's old salary. However if we wait and if he is unable to find a job we could possibly file a ch 7 instead of 13. Am I understanding this all correctly?

Also, my H in December decided to go back to college. Just part time at a local community college, will that impact anything? He was laid off the week before his classes started. He has started his classes.

Thank you so much for any advice you can offer.

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Regular Contributor

Re: BK Options

I forgot to add that we also have $30k in back taxes as well. It's from a 401k withdrawal when I was laid off in 2013 and found out I was pregnant 2 weeks before the lay off.
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Frequent Contributor

Re: BK Options


@luvs2barre wrote:
I forgot to add that we also have $30k in back taxes as well. It's from a 401k withdrawal when I was laid off in 2013 and found out I was pregnant 2 weeks before the lay off.

Talk to the attny about not filing until after April 15, 2017.  Assuming you meet all of the requirements to discharge taxes, the 2013 tax year becomes dischargeable in mid April, 2017 (or mid October, 2017 if you requested an extension).

 

Des

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