Do we have anyone here that can give general level advice about a specific possible bankruptcy situation? NOT MINE!! but a close friends. No wise ass remarks please!!
a note from my friend:
The 4 tier problem:
A) Income lost from business (economy created lack of spending, hence no new clients or income) –Also an increase of operational expenses, living expenses. The loss of our SEP money and investments have eliminated our money for xxx’s college. We lost 177K plus our SEP is down 93%. We cashed out our last 33K to live on 6 months ago, but have to pay taxes on that now!
B) Value of home dropped tremendously in short period of time. We (xxx) lost 5 major anchors with top level executives. This leaves no deep pockets for Million + Real-estate spending. Two-fold the xxx buyout took many Exec’s to xxxx and absorbed their properties for bottom line prices (a big reason for our decreased appraisal). Current Appraisal is 1.8M down from 2.2 just a couple months ago. We are in a 5/1 loan that expires in 11/1/09 and refinancing is not much of an option as we owe 1.6M in two mortgages.
C) To make ends meat and keep working hard to bring income in, we took the risk with xxx and put our operational expenses on credit(for the last 18 months). We also had to use credit (since Sept. ‘08) to live on. As you might imagine, our monthly outflow is tens of thousands. I creatively have been barrowing from Peter to pay Paul, but with the credit crunch now, and unbelievable high interest rates, it is killing us. The window gap is closing fast and even though I have ALWAYS paid on time (and above the cc min. pymt) we are almost out of credit to live on. 6-8 weeks max is left. Btw, we have a total of 2M open credit on our credit report.
D) XXX has been looking for a job, and needless to say, there are NONE. Without income, everything has been put on hold. I too have looked, but the part time work I can obtain wouldn’t even cover babysitting expenses. He did pick up a few small jobs (less than 1k/month), but is still trying to get some BIG contracts.
We need to speak to a financial person about bankruptcy. If we contact a lawyer they will charge us $ and probably advise us wrong. Who should we speak with? Should we try debit consolidation? W/O income, what is the point? Oh, on the other note, we paid 179K in taxes last year for our capital gains and taxes in 2007 (a BIG reason we have SO MUCH DEBIT and NO money).
a note from my friend:
The 4 tier problem:
A) Income lost from business (economy created lack of spending, hence no new clients or income) –Also an increase of operational expenses, living expenses. The loss of our SEP money and investments have eliminated our money for xxx’s college. We lost 177K plus our SEP is down 93%. We cashed out our last 33K to live on 6 months ago, but have to pay taxes on that now!
B) Value of home dropped tremendously in short period of time. We (xxx) lost 5 major anchors with top level executives. This leaves no deep pockets for Million + Real-estate spending. Two-fold the xxx buyout took many Exec’s to xxxx and absorbed their properties for bottom line prices (a big reason for our decreased appraisal). Current Appraisal is 1.8M down from 2.2 just a couple months ago. We are in a 5/1 loan that expires in 11/1/09 and refinancing is not much of an option as we owe 1.6M in two mortgages.
C) To make ends meat and keep working hard to bring income in, we took the risk with xxx and put our operational expenses on credit(for the last 18 months). We also had to use credit (since Sept. ‘08) to live on. As you might imagine, our monthly outflow is tens of thousands. I creatively have been barrowing from Peter to pay Paul, but with the credit crunch now, and unbelievable high interest rates, it is killing us. The window gap is closing fast and even though I have ALWAYS paid on time (and above the cc min. pymt) we are almost out of credit to live on. 6-8 weeks max is left. Btw, we have a total of 2M open credit on our credit report.
D) XXX has been looking for a job, and needless to say, there are NONE. Without income, everything has been put on hold. I too have looked, but the part time work I can obtain wouldn’t even cover babysitting expenses. He did pick up a few small jobs (less than 1k/month), but is still trying to get some BIG contracts.
We need to speak to a financial person about bankruptcy. If we contact a lawyer they will charge us $ and probably advise us wrong. Who should we speak with? Should we try debit consolidation? W/O income, what is the point? Oh, on the other note, we paid 179K in taxes last year for our capital gains and taxes in 2007 (a BIG reason we have SO MUCH DEBIT and NO money).
