I know the bankruptcy laws changed, so my question is how bad should things be before declaring bankruptcy and is it even an option for us? DH bought a business a year and half ago and its not going well. He is great at what he does, just not the business part. I work full time and am the primary earner. He owes 5.5 years on the business loan, secured by our home, so we can not sell it - there is no equity in it. We have lots of debt - student loans, credit cards (due to medical and business costs - majority is my credit card and SL), a business loan and we recently sold 2 more expensive autos for cheaper ones (a Mazda small truck for DH that he can use for work and a 4 cyl car for me - both 3 years old). I am not expecting a substantial raise and DH seems to be making less $$$ every time I checked. I asked him to get a part time job at night for when he doesn't have work lined up but he just keeps telling me things will be OK. He didn't get his taxes done on his business or personal so I don't even know how much we owe...I am guessing 5k...I keep asking him to get them done. If I knew who the accountant was that has the records I would call him, but DH just gets mad when I ask. We will probably owe another 5k in taxes for this year too. I don't know if I should just file seperately even though it will cost us more or not. My credit card interest rates are pretty low - under 6.5% fixed - some are 4% fixed. But DH doesn't seem to pay his on time and his rates are closer to 15 or 20%. I am not going to balance transfer his to my better rates - I did that 25k a few years ago and he just ran them back up. I don't know what to do. I don't think we would be eligible for bankruptcy because of our income. I have decreased expenses where I can - shut off the home phone and ADT, switched to cheaper cable and internet (we can deduct that - if we ever file our taxes - DH has to have high speed for work), bought cheaper cars with better gas mileage, turned down the heat to 65. I am trying to contribute to my 401(k) as my company gives me a 50% match. I am trying to decrease pet costs but our two dogs have allergies and I am not giving them away. Its seems whatever I try doesn't work. I try to tell DH we don't have $$$ for him to buy new clothes and I need him to cut out all unessecary expenses and to quit using his credit cards but its not working. FYI - his parents have the same problem he has with managing money. I have to admit I have been sucked in by it too...until I realized we were spending money we clearly do not have. Suggestions?
Here is our expenses, annualized:
Pay yourself first 401 (k) account $4,800.00
Other savings $1,200.00
Rent/mortgage
Monthly payment $20,328.00
Condo/neighborhood fees $300.00
Food
Eating out $1,560.00
Lunch at work $780.00
Sodas, snacks at work/school $78.00
Stops at convenience store $156.00
Fast food $260.00
Groceries $5,200.00
Coffee, etc.
Gourmet coffee, lattes, double mochas, etc. $30.00
Clothing
Planned shopping for school, work $500.00
Shoes
For self $50.00
For spouse $50.00
Holidays
Gifts plus mailing costs $500.00
Travel $260.00
Decorating $100.00
Cards plus stamps $25.00
Gifts
Birthdays $300.00
Anniversaries $100.00
Other - Mom, Dad $300.00
Movies
Going to the movies $150.00
Renting /Buying movies $84.00
Communications
Cell phones $180.00
Computer expenses
High-speed internet access $600.00
Television
Cable or satellite TV fees $240.00
Automobiles
Car loan payments $7,200.00
Gasoline $1,300.00
Car washes $50.00
Oil changes $160.00
Other maintenance (tires, new batteries, etc.) $100.00
Body upkeep
Massages $130.00
Hair cuts and color $270.00
Pets
Vet bills $300.00
Toys and collars $50.00
Regular medicines (flea/tick preventative, heart worm) $304.00
Food $1,500.00
Credit cards
Monthly minimums/Paydown balances $16,800.00
Other loans 401k $3,816.00
Home Maintenance
Utilities (gas & electric) $3,917.16
Yard service $60.00
Garden/lawn plantings, etc. $50.00
Financial obligations
Property taxes (dont count if in house payment above) $600.00
Auto insurance $1,800.00
Life/disability insurance $1,200.00
Other
Medical expenses
Health insurance $2,100.00
Medical costs $2,500.00
Charitable contributions
Donations $50.00
Reading
Books, magazine subscriptions $50.00
Other untrackable expenses $500.00
taxes on business $5,000.00
TOTAL EXPENSES $87,938.16
TOTAL INCOME $78,134.00
WHATÂS LEFT -$9,804.16
Debts
Credit Cards $60,000
Student Loans $95,000
2 Autos $20,000
401(k) loan $3,000
mortgage $225,000
Business Loan $55,000
davidandkasie
keckOriginal Author
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