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  • bankrupcy questions

    I realize I'll need to speak to a pro about this, but I'm just trying to
    gather some info first.

    My and my wifes situation:
    - I owe the IRS about 20K, I've been trying to borrow to pay them off but
    nobody will give me an unsecured loan. Probably a good idea since I suspect
    within the next year I will have to file bankrupcy as some legal bills come
    into play.

    - I owe about $100K in legal bills. They haven't started giving me a hard
    time yet, but I've been paying them $20/month for three years, it's only a
    matter of time.

    - We have probably 30-40K in credit card debt. We've never been late on
    anything, so both of us have clean reports, but the amount of debt we carry
    gives us poor credit.

    - We'd like to buy our first house sometime soon since the amount of rent we
    are paying is basically the same as a mortgage payment (we live in the
    northeast and are moving to texas where housing costs are half the price).

    - I have a somewhat exotic sports car that's 14 years old and paid off, it's
    worth about $30K these days. I'd probably sell it for a down payment on a
    house. I'm not selling it to pay off the IRS weasels.

    So, I guess I'm wondering which would leave me in a better position to buy a
    house for about 150K... carrying lots of debt but with no bankrupcy (frankly
    I'm not even sure we'd be able to afford rent much longer, nevermind a
    mortgage), or carrying a minimal amount of debt but with a bankrupcy on our
    credit reports. The IRS debt wouldn't show when the bankrupcy is said and
    done and I'd be in a much better position to pay them the $550 a month
    (payment plan, currently $150/mo, jumps to 550 in november). Frankly I
    don't even know if I can file bankrupcy where I'm managing to handle the
    debt we have now, but I know we won't be able to soon (also have first child
    on the way). I'd like to take care of it before we start getting behind and
    destroying our credit (I estimate 6 months before we're in way over our
    heads).


    Any thoughts appreciated before I shop for a pro.



  • #2
    bankrupcy questions

    "Rob" <[email protected]> wrote in message news:<[email protected]>...
    I realize I'll need to speak to a pro about this, but I'm just trying to gather some info first. My and my wifes situation: - I owe the IRS about 20K, I've been trying to borrow to pay them off but nobody will give me an unsecured loan. Probably a good idea since I suspect within the next year I will have to file bankrupcy as some legal bills come into play. - I owe about $100K in legal bills. They haven't started giving me a hard time yet, but I've been paying them $20/month for three years, it's only a matter of time. - We have probably 30-40K in credit card debt. We've never been late on anything, so both of us have clean reports, but the amount of debt we carry gives us poor credit. - We'd like to buy our first house sometime soon since the amount of rent we are paying is basically the same as a mortgage payment (we live in the northeast and are moving to texas where housing costs are half the price). - I have a somewhat exotic sports car that's 14 years old and paid off, it's worth about $30K these days. I'd probably sell it for a down payment on a house. I'm not selling it to pay off the IRS weasels. So, I guess I'm wondering which would leave me in a better position to buy a house for about 150K... carrying lots of debt but with no bankrupcy (frankly I'm not even sure we'd be able to afford rent much longer, nevermind a mortgage), or carrying a minimal amount of debt but with a bankrupcy on our credit reports.
    probably the latter. You said yourself you have poor credit.


    The IRS debt wouldn't show when the bankrupcy is said and
    done
    What do you mean, "wouldnt show"?

    and I'd be in a much better position to pay them the $550 a month
    (payment plan, currently $150/mo, jumps to 550 in november). Frankly I don't even know if I can file bankrupcy where I'm managing to handle the debt we have now, but I know we won't be able to soon (also have first child on the way). I'd like to take care of it before we start getting behind and destroying our credit (I estimate 6 months before we're in way over our heads).
    You sound like you are hoping to preserve your credit by filing before
    you are behind, but your credit wil be "destroyed" (your term, not
    mine) anyway when you file.

    Any thoughts appreciated before I shop for a pro.
    Talk to a lot of pros before you decide on one. Its free.

    Comment


    • #3
      bankrupcy questions


      "Joe" <[email protected]> wrote in message
      news:[email protected] om...
      "Rob" <[email protected]> wrote in message news:<[email protected]>...
      I realize I'll need to speak to a pro about this, but I'm just trying to gather some info first. My and my wifes situation: - I owe the IRS about 20K, I've been trying to borrow to pay them off but nobody will give me an unsecured loan. Probably a good idea since I suspect within the next year I will have to file bankrupcy as some legal bills come into play. - I owe about $100K in legal bills. They haven't started giving me a hard time yet, but I've been paying them $20/month for three years, it's only a matter of time. - We have probably 30-40K in credit card debt. We've never been late on anything, so both of us have clean reports, but the amount of debt we carry gives us poor credit. - We'd like to buy our first house sometime soon since the amount of rent we are paying is basically the same as a mortgage payment (we live in the northeast and are moving to texas where housing costs are half the price). - I have a somewhat exotic sports car that's 14 years old and paid off, it's worth about $30K these days. I'd probably sell it for a down payment on a house. I'm not selling it to pay off the IRS weasels. So, I guess I'm wondering which would leave me in a better position to buy a house for about 150K... carrying lots of debt but with no bankrupcy (frankly I'm not even sure we'd be able to afford rent much longer, nevermind a mortgage), or carrying a minimal amount of debt but with a bankrupcy on our credit reports.
      probably the latter. You said yourself you have poor credit. The IRS debt wouldn't show when the bankrupcy is said and
      done
      What do you mean, "wouldnt show"?
      because debt to the IRS does not appear on a credit report unless it reaches
      a point where they file a lien against you. however, i wrote
      this before knowing that i might be able to have that debt discharged via
      bankrupcy.

      and I'd be in a much better position to pay them the $550 a month
      (payment plan, currently $150/mo, jumps to 550 in november). Frankly I don't even know if I can file bankrupcy where I'm managing to handle the debt we have now, but I know we won't be able to soon (also have first child on the way). I'd like to take care of it before we start getting behind and destroying our credit (I estimate 6 months before we're in way over our heads).
      You sound like you are hoping to preserve your credit by filing before you are behind, but your credit wil be "destroyed" (your term, not mine) anyway when you file.
      i figure a credit report that shows just a bankrupcy is better than a credit
      report that shows a bankrupcy and lots of late payments.
      i have a friend that buys houses, fixes them up and resells them at a rate
      of 3 or 4 a year who had almost a million in debt discharged about 4 years
      ago, so clearly a bankrupcy doesn't have to mean credit is so bad nobody
      will touch you (he has about 600k in debt at the moment until
      he sells the proprties he's working on now).
      Any thoughts appreciated before I shop for a pro.
      Talk to a lot of pros before you decide on one. Its free.
      yep, i put in a couple of calls today.


      Comment


      • #4
        bankrupcy questions

        >
        i figure a credit report that shows just a bankrupcy is better than a credit report that shows a bankrupcy and lots of late payments.
        And it may be hard to convince anyone that you cant make your payments
        if in fact you havent missed any payments. Just a thought.

        i have a friend that buys houses, fixes them up and resells them at a rate of 3 or 4 a year who had almost a million in debt discharged about 4 years ago, so clearly a bankrupcy doesn't have to mean credit is so bad nobody will touch you (he has about 600k in debt at the moment until he sells the proprties he's working on now).
        I've heard of people buying houses not long after bankruptcy, though
        they may not get the most competitive rates.

        Comment


        • #5
          bankrupcy questions


          "Joe" <[email protected]> wrote in message
          news:[email protected] om...
          i figure a credit report that shows just a bankrupcy is better than a credit report that shows a bankrupcy and lots of late payments. And it may be hard to convince anyone that you cant make your payments if in fact you havent missed any payments. Just a thought.
          I had that thought as well which is why I brought this up here . I CAN
          make my payments now, but barely,
          in a few months it will not be possible. I'm trying to be proactive.
          i have a friend that buys houses, fixes them up and resells them at a rate of 3 or 4 a year who had almost a million in debt discharged about 4 years ago, so clearly a bankrupcy doesn't have to mean credit is so bad nobody will touch you (he has about 600k in debt at the moment until he sells the proprties he's working on now). I've heard of people buying houses not long after bankruptcy, though they may not get the most competitive rates.
          Understood. I suppose I also need to consider if the state laws would
          benefit me more in MA or TX if I end up
          relocating. Dunno if a local attorney will be able to answer that one.


          Comment

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