Filing for bankruptcy

[manny78]

20k and you're thinking about bankruptcy ? Bro, you must be joking right ? With your annual income I wouldn't even touch this unless you reach 50k$ or more...

Pimpin' your wife might be a solution...

 

[Stangfriik]

Does anyone have any better options? We can only make the minimum payments on our bills. Once those are paid, we'll have $100-$200 in the bank at the end of the month. We have to wait for my fiances check on the 10th so we can make our mortgage payment. We did take out something called an equity plus loan which is something like a home equity loan but they only approved us for 6k. They wouldn't just give us the money to distribute amongst the bills ourselves. We had to pick 2 or 3. So we picked the two bills that are the most per month. That paid off her car and the engagement ring. That helped us a little but I don't see our financial situation getting any better unless one of us starts making a lot of money soon and I just don't see that happening. I guess my fiance is already walking the strip so to speak. She's about to get back into the Hawaiian Tropic contests so hopefully we can get some extra cash that way. Plus everything she buys to compete is tax deductible which is cool. She also wants to start doing the baby making thing before she's 28 and she turns 25 this year. I told her that I am not having a kid before we get out of this whole we have dug for ourselves. I just don't know what to do

 

[manny78]

Does anyone have any better options? We can only make the minimum payments on our bills. Once those are paid, we'll have $100-$200 in the bank at the end of the month. We have to wait for my fiances check on the 10th so we can make our mortgage payment. We did take out something called an equity plus loan which is something like a home equity loan but they only approved us for 6k. They wouldn't just give us the money to distribute amongst the bills ourselves. We had to pick 2 or 3. So we picked the two bills that are the most per month. That paid off her car and the engagement ring. That helped us a little but I don't see our financial situation getting any better unless one of us starts making a lot of money soon and I just don't see that happening. I guess my fiance is already walking the strip so to speak. She's about to get back into the Hawaiian Tropic contests so hopefully we can get some extra cash that way. Plus everything she buys to compete is tax deductible which is cool. She also wants to start doing the baby making thing before she's 28 and she turns 25 this year. I told her that I am not having a kid before we get out of this whole we have dug for ourselves. I just don't know what to do

Did you think about getting a second job ? or work more hours ?

 

[[email protected]]

Break it down to secured loans (house, car) to unsecured loans (credit cards).

Depending on how much each unsecured loan is they will probably write the loss off as a charge off. If they are each under 5K that would most likely be the case. I had an 11K default and then later bought the loan for 5K. Even with the 11K debt they still just sent it to collections and about 6 months later wrote it off. Things happen that you can’t foresee.

Secured loans and they come and take their stuff back. If your credit is all screwed up anyway what are you protecting by beating your head against the wall trying to pay back unsecured debt. If you have late payments all over your report the damage is already done. Let them chase you for a while and eventually they will let it go. When they sell the debt to a collections agency just send them the cease and desist.

Even if they sue you and you’re a “no show” they win the judgment by default. It’s not common that they will sue for a small amount. Even if they do and get a judgment they still have to collect the money. That in itself is MORE resources and money they have to invest and possibly get nothing in return.

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Kayne: I’ve heard of that kind of a loan but I never really heard of anyone taking it. Well, at least I never had something like that offered to me. It seems like a very restrictive type of a loan that no one would want.

 

[KAYNE]

Kayne: I’ve heard of that kind of a loan but I never really heard of anyone taking it. Well, at least I never had something like that offered to me. It seems like a very restrictive type of a loan that no one would want.

THEIR ARE 2 TYPES OF LOANS (WHEN SPEAKING OF INTEREST). ONE IS THE SIMPLE INTEREST LOAN. TAKE FOR INSTANCE, YOU BORROW $10K FOR 4 YEARS AT 8% FINANCING. THE SIMPLE INTEREST ON THE LOAN WOULD BE PRINCIPAL*RATE*TIME. THUS, 10K(4)(.08)=$3200. $3200+$10K=$13200 FOR THE AMOUNT YOU HAVE TO PAY BACK. IT DOESNT MATTER IF YOU PAY IT BACK IN ONE YEAR OR 4 YEARS.

THE OTHER TYPE OF LOAN IS A COMPOUNDED INTEREST LOAN. THE SIMPLE INTEREST LOAN IS ARITHMATIC AND DOENST INCORPERATE THE TIME (COMPOUNDING) COMPONENT. THE COMPOUND LOAN IS GEOMETRIC, INCORPERATING THE TIME COMPONENT. INTEREST IS ADDED TO THE PRINCIPAL EACH COMPOUNDING PERIOD. YOU THEN HAVE TO PAY INTEREST ON THE PRINCIPAL PLUS THE ADDED INTEREST. THAT IS A RECURRING PROCESS FOR EACH COMPOUNDED PERIOD.

COMPOUNDED LOANS CAN BE COMPOUNDED SEMI-ANNUALLY, QUATERLY, MONTHLY, DAILY, AND CONTINOUSLY. CREDIT CARDS ARE CONTINOUSLY COMPOUNDED LOANS WHICH IS WHY YOU NVR PAY THEM OFF IF YOU ARE PAYING THE MINIMUM. THE MINIMUM DOESNT DO ANYTHING BUT COVER THE PREVIOUS PERIODS FINANCE CHARGES PLUS A MINUTE AMOUNT OF THE PRINCIPAL.

THIS REALLY HAS NOTHING TO DO WITH SECURED AND UNSECURED LOANS. ITS ALL ABOUT THE INTEREST.

 

[[email protected]]

So I guess you can actually sell a simple loan because you have a guaranteed payback amount and a time period. Then the lender would use that money to give another loan and do the same thing. He gives a loan at 8% of X and sells it to a third party for 5%. He profits 3% and rolls the principal back into another loan.

Does this sound feasible?

 

[KAYNE]

YES, BUT COMPOUNDED LOANS HAVE A SECONDARY MARKET AS WELL. NOT JUST SIMPLE LOANS.