The "My Debts" Recommends Bankruptcy.. New York
Date: Fri, 11/09/2007 - 10:52
I did the "my debt" thing and it recommended bankruptcy but I have a concern that I will not qualify due to income being WAY over the NY limit ($85K+).
Total overall debt is $400K+, of which $350K is a house that is fully mortgaged (bought at height of market, market has crashed entirely in my area, would have to do a short sell to get out of it).
Newly divorced.. ex left me with all of our debt, and with 100% financial responsibility for our just under 2 yr old daughter, who has special needs due to extreme prematurity at birth. Childcare alone costs me $1,500 a month.
Sooo, my questions are:
1) I am currently NOT behind. In fact, I pay early and through savings, pay slightly above minimums. My credit score is in the high 700's.
The "my debt" thingy says that bankruptcy drops your score 100 points?? Can you continue to pay monthly minimums until your discharge to minimize effect on credit score?
2) What do they take into account in order to qualify for total discharge BK versus repayment BK? If I'm going to have to repay then I'd just rather continue to do what I am doing (which is working full time, and ebay'ing everything I own).
3) What do you do with cards you owe NOTHING on? I owe $45K in unsecured debt.. have another $40K or so in available credit. Before doing a bk, I'd transfer balances to ONE creditor (ie: Chase) leaving myself with open and unused cards/lines with Citibank and other banks. Can you do this? Do other creditors ALWAYS cancel your cards? I have about 12 cards between credit and store cards. Could easily put everything I owe to one single creditor. What is likelihood of having NO cards left after? (again, not reaffirming any existing debt.. keeping cards that have $0 balances - many of which have been unused for ages).
I really hesitate to do a BK; however, I already have my balances on cards with 5% interest or less or will be transferring balances with higher rates to those cards.
My big issue is a single line of credit that we used to pay medical bills from daughter's birth and my pre-birth hospital stay (2 months) = $23K. Interest on that is almost 14%. Can't transfer that anywhere.
Thoughts/suggestions/opinions????? I'm 38 and really hesitate to trash my credit.. again. I rebuilt to this level after trashing my credit in my late teens early 20's. My folks filed in their late 50's and now have no issues at all, even buying two different homes before the BK rolled off their credit (this year). Both have credit cards.. etc.
Total overall debt is $400K+, of which $350K is a house that is fully mortgaged (bought at height of market, market has crashed entirely in my area, would have to do a short sell to get out of it).
Newly divorced.. ex left me with all of our debt, and with 100% financial responsibility for our just under 2 yr old daughter, who has special needs due to extreme prematurity at birth. Childcare alone costs me $1,500 a month.
Sooo, my questions are:
1) I am currently NOT behind. In fact, I pay early and through savings, pay slightly above minimums. My credit score is in the high 700's.
The "my debt" thingy says that bankruptcy drops your score 100 points?? Can you continue to pay monthly minimums until your discharge to minimize effect on credit score?
2) What do they take into account in order to qualify for total discharge BK versus repayment BK? If I'm going to have to repay then I'd just rather continue to do what I am doing (which is working full time, and ebay'ing everything I own).
3) What do you do with cards you owe NOTHING on? I owe $45K in unsecured debt.. have another $40K or so in available credit. Before doing a bk, I'd transfer balances to ONE creditor (ie: Chase) leaving myself with open and unused cards/lines with Citibank and other banks. Can you do this? Do other creditors ALWAYS cancel your cards? I have about 12 cards between credit and store cards. Could easily put everything I owe to one single creditor. What is likelihood of having NO cards left after? (again, not reaffirming any existing debt.. keeping cards that have $0 balances - many of which have been unused for ages).
I really hesitate to do a BK; however, I already have my balances on cards with 5% interest or less or will be transferring balances with higher rates to those cards.
My big issue is a single line of credit that we used to pay medical bills from daughter's birth and my pre-birth hospital stay (2 months) = $23K. Interest on that is almost 14%. Can't transfer that anywhere.
Thoughts/suggestions/opinions????? I'm 38 and really hesitate to trash my credit.. again. I rebuilt to this level after trashing my credit in my late teens early 20's. My folks filed in their late 50's and now have no issues at all, even buying two different homes before the BK rolled off their credit (this year). Both have credit cards.. etc.
With what you make, you would be forced to file a Chapter 13 BK,
With what you make, you would be forced to file a Chapter 13 BK, in which you would repay a portion of your debts.
They do a means test to see what chapter you will qualify for, and if you are over the median income for your state, you pretty much have to file a chapter 13.
