New to the forum but have a few questions BK7

[Anonymous]

Hi,
So I have looked and searched over the forums and finally decided to post, I am a very private person. Here is a little info, Had a great job up until last year but lost it and was not able to find another with enough pay to cover my bills. Decided to start a rideshare LLC, I had driver for uber before and made decent money and only wanted to do it till the end of this year, this time though i would do them all ft. Well all was great till the middle of this year when Grubhub and doordash cut there rates, uber and lyft over saturated the market as well as instacart.
 
The money dropped and I have put this off long enough, what did it for me was when i ran out of savings and I could not help out my son this month, also last week i twisted my ankle so severely i though it was broken, could not walk for 2 days and even now cant work my full 12 hours per day. The decision was made last week and now my appointment to pay the lawyer and get it started is on the 11th. What also did it was the fact Avant and Upgrade would not rewrite there notes for me, this was the second with avant and my first with upgrade, both never missed a payment and still currant on everything. Not even capital one would drop the interest rate for me even after 10 years with them.
 
Sorry for the long post, here are my questions and i am just looking for information is all, the phone interview i did with the law firm was vague at best. I am 54 and single so this is very hard for me and still have not missed any payments yet but 62k in debt and 1k per month for those 2 loans have done me in. Here are my questions:
 
Capital one i have a cc 8k and a auto loan at 17500 4y 10 months left at 350 per month at 5.9%, kbb value 13500 46k miles 2018 chevy malibu is it worth keeping the car and can you if you don't keep the credit card.
 
As i stated i am self employed, the rideshare plus i have a small ebay business which has about 3k in stock left, the stuff that does not sell, would the make me close the ebay and sell of the stock or no since it so small.
 
I recently opened up a amazon store card, needed it to purchase a dash cam plus food, its new with about 500 on it, open within the last month, I can reaffirm it if need by, will this be a issue.
Also i used a dormant kohls card for personal reasons for my son but have not used it in maybe 2 months 1200 on it.
I had to use my chase card for gas yesterday to work, will this be a issue.
 
Last one, i know i am well within the means atm for pay only about 30k this year gross for both business, but how much can i make from the signing anf iling to the moc or disscharge. For intance, I decide to give up my car, after the filing i work like 16 hours per day till i get the cash for anew car, say 3k, would this be a issue, also how long if i stop paying the car will capitalone go to come pick it up.
Thank you all and sorry for the long post.
 
 

[FireMedic1]

Sorry about the situation. Long post are fine. Trying to remeber each creditor when you read you get lost. Time to get down to the basics. List your debts. Company/Credit Line/ Balance, income presently, any baddies. Then we can go from there. Welcome.

[Anonymous]

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@FireMedic1 wrote:

Sorry about the situation. Long post are fine. Trying to remeber each creditor when you read you get lost. Time to get down to the basics. List your debts. Company/Credit Line/ Balance, income presently, any baddies. Then we can go from there. Welcome.

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^^^This. 

Hard to give advice to someone when we don't have the full picture I know you work for yourself and your income probably varies significantly especially with your injury, however the key(s) to bankruptcy, rebuilding, paying off debt all start with your income.

Income  : 

ALL debts: Who, How much owed, Credit line, interest rate.  (I prefer them listed smallest to largest by balance.)

Fixed expenses: Mortgage/Rent, Utilities, etc. 

What state are you in? 

Household size?

Any late payments, charged off accounts?

Your post has some weird page breaks in it, and it made it difficult to read. 

[Anonymous]

Hi,

Sorry about the spacing and what not, I posted on my computer at home and when i edited it on my phone it got all messed up, so here is the condesned version. 54 and single, no late payments until i missed the avant and upgrade this week, make about 800 - 1100 per week gross, averages out to 3700 per month or so, Debt is 3600 per month not including food or extra anything, also i rent do not own.

Total debt is 62k or so here are the following cards that i will most likely burn in bk7

Avant 6700 1.5 years left

Upgrade 8400 1.5 years left these 2 together are 1k per month and would not rewrite

Cap1 8k  

CaP1 auto loan 17500

Amex 6k

Wellsfargo CC 5k

Wellsfargo CL 4k

Chase 2k

Kohls 1200

CFNA - Firestone 800

Amazon Store Card 500

So questions are as follows:

Can i keep the car from cap1 if i burn the CC and should I, here is the loan:

17500 left 4y10m at 5.9% 350 per month payment 2018 Chevy Malibu KBB value at 13500 46k miles on it.

Amazon is new, 30 days, needed a dash cam due to a uber issue and food can pay it off once i stop paying cc's, i can also reaffirm if needed

Kohls kinda same issue it was dormant but needed it for my son can do the same if needed havnt touvhed it in 2 months.

Last one, lawyer meeting is on 10/11 to bring paperwork and pay a retainer, they tole me 2 weeks to sign and file, the time of filing and MOC can i work more to make money to try and buy a used car if i go that route or no.

Thank you all and sorry for the first post.

[Anonymous]

I only recommend bankruptcy when it is absolutely necessary, and I never recommend debt consolidation companies.

If you worked more to buy a used car what would your income be?

62k in debt seems like a lot when it’s 95% of yourself income. But from the outside looking in it seems like you have an income problem more than a debt problem.

It may be possible with a few late payments to get out of your hole. Consider this, late payments are better then the situation bankruptcy will put you in.

Also remember every credit card you have will be included in bankruptcy, so if you have 0 balance cards close them now.

Now to your specific questions. I would immediately stop paying all debts, and pay for necessities, food, rent, etc...

I would not reaffirm the car. You can however continue making payments and keep the car, I wouldn’t do that either. You’re upside down quite a bit.

Charges under $600 are not typically considered luxury items and there is no need to reaffirm that either.

Find out where the means test cut off is for your state. You can make as much money under that amount that you want.

[Anonymous]

Thanks for the information philannony, but i have a few more for the forums and some more clear numbers, so here they are.

For the income I am unsure what they will use, the lawyer assistant who called me asked for my gross for the rideshare llc but i would think it would be the net income after expenses, does anyone know about this. He did ask for the the profit only on the ebay business, though small as it is.

First question will they make you close that llc and take the stock, its stock that does not move, its about 3k or so.

Here are some more solid number for my situation:

House bills 1630, this includes car insurance and food at 75 per week 300 a month

CC and loan bills 2109 including the car

Total 3739

Net income before expenses this year to day on the rideshare is 27k about plus 4k in profit from the ebay total 31k or 3400 per month average.

Net after expenses for the rideshare 20k plus 4k profit from ebay for 24k or 2700

2700 - 3739 = -1039 explains where my 20k in saving went this year.

Last year i made 56k with job and rideshare, last year the rideshare was doing about 1200 - 1500 per week or average for the year of 5k per month before expenses.

With the cuts in the pays and over saturation its tough and i owe to much to get a job that will pay. I did try and get several debt consolidation loans, even went to talk with wellsfargo whom i been with for 15 years and they said they would then declined me.

Avant and upgrade refuse to rewrite even though i have never missed a payment and they are 950 per month and cap1 said no to a intrest reduction even 8 years now with them.

As for the car here is my take and i am curious on opions, the loan is the following 17500 owed 4y 10m left at 350 interest 5.9% KBB about 13500 due to the miles i put on it. Now i have seen people gets loans at bk but there rates were higher, this is a solid car and honestly i would probably not due better, plus i only plan on doing rideshare maybe 1 more year just to get some money in the bank.

Last on the 600 in 90 days, my min payment for cap on is 300 per month my car 350, avant 405 and upgrade at 525, and i am currant on all my bills at this time, will this make me have to wait or will there be an issue.

This is really hard for me at 54 and I have been working more hours and just not making the money needed, I have been pondering this for almost 4 months now and the injury just woke me up to the fact this is no win for me. Opinions and comments both good and bad are all welcome. Thank you for looking and giving me a place to vent sort of.

[FireMedic1]

You got a lot on your plate. I feel its best to seek a BK lawyer and sit down and see what will be best to get you out of this mess. All these LLC's, eBay, and everything else added up is a bit much for anyone to give you a solid direction to take. Either way. I always say in the time it takes to pay this all off will be more time than a 7 to rebuild or a 13 with a payment plan. Good Luck!

[Anonymous]

Jaffoman

If your income on average is 2700, and the total monthly bills are 1980 you’ll be fine to keep the car. I still wouldn’t reaffirm as it gives you the ability to walk away at a later date and time if need be.

While I didn’t have a business I’ve never read of anything where bankruptcy takes your llc.

You’ll have to talk to an attorney if you have an exemption to use for that stock, otherwise yes it would be taken unless it’s a retirement account.

Attorney can help you with eBay. I’d venture an educated guess it’s not being considered a job or business, but more of a hobby. Is it also an llc.?

Whether you have to wait or not, you wouldn’t be paying those bills, your income would remain the same and you would start to have the relief you needed although the lenders would be calling you all the time. Just tell them you’re filing bk and give them your lawyers numbers. Or just get good at ignoring them for a few months. The bankruptcy will damage your credit more than the late payments are concerned


They look at your gross income, not net.

I think I covered all your questions.

Fire medic is right though, you have a very complex situation. Tour attorney should be walking you through these things, and giving you advice. If they aren’t consider finding another attorney.

[Anonymous]

Hi Everyone and thank you,

So as for the car I put in the wrong numbers:

17500 loan total kbb value 14700, 350 per month at 5.9%. With the low rate and only 3k under water due to miles i might just reaffirm the loan, its better than i will get and still need a dependable car for what i do.

Yes the ebay business is an LLC also, I have asked the lawyers office if i can sell the remaining stock ( inventory ) for a bulk price otherwise they are welcome to it. I think i said it wrong when i said stock I ment inventory for the ebay business in my house. The stuff hasnt moved in a year so they are more than welcome to it, I will be closing that any ways.

I am going to file in october, not going to wait as i am still currant but will not pay any debt in october. My meeting isin a few weeks and then its about 2 weeks once i meet them and pay. I think this is the best choice at this time as there is zero chance i can get caught up. Thank you all again and I know i had some differant issues than the norm.

Just worried about the Amazon card as it is new, this month but only about 600 on it and using chase this month for gas. I will tell me lawyer that i could either pay it off or reaffirm it, what ever the best choice is. I am waiting till the 3rd week in october that way i dont fall into the 600 for 1 card as i just wont pay this months bills coming. Thank you all once again

[pizza1]

Is your business actually registered with the state, and do you have an EIN?