mudnuri

Do the fixed business expenses count towards his 30%?

Quick question regarding being self employed and looking for a mortgage. Back story House purchased 7 years ago, 10 year note. Both husband and wife on note. $13,000 owed- late twice Home Equity taken 3 years ago (windows/vinyl siding etc) $20,000 owed- never late $33,000 owed combined loans divorce, husband retains house, pending financing, and paying off $21,000 to ex wife needed financing for $54,000 current loan includes property taxes, total monthly payment is $1,400 which husband has been paying for 18 months while divorce is in process Husband is self employed, business and personal checking accounts are with same bank as mortgage Tractor, and Trailer purchased through same bank in 2009, based on 2008 taxes. (commercial loans) - never late Been self employed for 15 years, income was down in 2009, but 1st quarter of 2010 looks VERY promising as far as income goes, newer tractor purchased so repairs are down etc. When going to the bank to refinance the 2 loans, and add the $21K that he owes the ex wife, what do they look at as far as his income? His schedule C has a gross of $91K, depreciation of $17K (tractor and trailer) his business profit is listed at $25K, but his AGI is listed at $22K His other fixed expenses, personal, are his Harley $488 a month, and no credit cards with balances. He has 4 cards, total available of $15K. House insurance is $300 a year, he has never had PMI, So the question is, he needs to have his fixed expenses at the 30% mark, but 30% of what? Thanks guys!

Brief background, divorce, bk7 in 2008, graduated with my degree in May of 2008, gainfully employed, with VERY minimal risk of job loss (healthcare). Since the BK, I have not been late on anything, and have funded an emergency fund to the tune of $3500.00. I've been a bit lax on my spending- well, no, savings I guess and I know that on paper I make enough money for this new house, but need to see it and get some input from you guys. Net pay $3400 Monthly $560 child support per month total income $3960.00 Rent $1000 Heat $150 Elec $50 Cable/Internet $60 Cells $190 Ortho $101 Health Insurance $60 Truck payment $335 Truck Insurance $45 Truck Gas $600 Kids stuff $50 Groceries $400 Student Loan $127 3161 credit cards $150 (PIF each month) total 3318 leaves about $600 for savings, things that come up etc. By moving, my rent would increase, and my fuel for my truck would go up about 10 gallons a week. Nothing else would change, as I've called the electric company and the fuel company the last family used and they were about the same as mine are now. Fuel less, Electric more, but basically a wash. Anything you can think of that I'm forgetting? I'm going to go through my current budget and see what might be missing....... thanks! Brandy

does this dissolve the balloon payment too? I missed that if you stated it. Brandy

no impact on mine last fall when they consolidated i went from 6 lines to 7, the 6 original, just show zero balances, and no lates and the new one has the big balance and no lates. I think it's obvious the smaller ones were turned into the big one Brandy

Isn't that what the previous poster said that you quoted? -Brandy

Can I ask, with no disrespect intended, Why? I guess because I have never thought about reaching that point, I can not fathom why you have that many cards? Please do not think I'm being snarky, as I am not. My dad had a SDB, but the only time I went to it was after he passed. No other experience, sorry! could you get a big monster safe for your house? Brandy

I don't have paperless statements, for this reason. Even though I pay my bills online, through my checking accounts, I still have the paper copy of the bill, should something come up and I need a previous statement, I have them. I'd call the number on the card if this happens again, or better yet, I'd change to paper statements, and pay the bill from my banks online system. No charge either way from my institution Brandy

good luck with equifax, I can't get to remove a messed up version of my name middle initial, first name, last name I think it's RATHER obvious why it's wrong, but they seem to think it's my correct name. i've sent them everything you have, they keep leaving it. Brandy

I guess I'm going to have to do some more research before making my case. they are complete opposites of one another (the 2 publications). I know that insurance premiums are not allowed in HSA's....but FSA's it said in 502 they were. Maybe if I called the IRS they could give me the real answer LOL. Either way, it's not THAT much of a savings to get reimbursed by my FSA for it. Thanks! Brandy

The following quotes are directly copy/paste from my employers benefits page... that is from my online version of my paycheck- the pretax deduction part this is on the page that tells me what I elected to put into my FSA again- same page as above again showing me what I picked Now, from what they have all over my benefits page- its a FSA.........they can kiss my butt if they think I won't win this appeal. I need to find WHERE it says- "the irs publication 502 is the law of FSA, you can't as an HR person, pick and chose what is eligible.." Anyone?

The HR lady I spoke with told me it's not a valid expense for a "RAP" account. I politely told her that a RAP account is what they use to call the account, once our hospital was absorbed by the big hospital- they became FSA, as it is written all over our paperwork, our HR policy book, our HR policy website etc. I advised her that I had printed off the part of publication 502, which states "INSURANCE PREMIUM" You can include in medical expenses insurance premiums you pay for policies that cover medical care. Medical care policies can provide payment for treatment that includes: Hospilization, surgical services, xrays prescription drugs and insulin dental care, replacement of lost or damaged contact lenses and LTC." I pay for the girls insurance, through a program in our state, Catamount Heathcare is what it's called. It's a "low" income or uninsured program. Since the policy offered through my work place, is also owned by my workplace, i would have to go there for care...they are in Mass, I'm in VT. So basically now I have to wait for the letter, denying it, and then I have to appeal it. my question is, can an employer pick and chose what parts of the IRS expenses they allow for the FSA? i went round and round with her about bandaids last year, and won that. Thanks Brandy

This would be the time when you need to talk to the OC you filed a complaint with the BBB, and now the creditor is trying to negotiate with you. If you chose not to, you won't get anywhere with the BBB. What I would do- Get someone on the phone that has some pull at Sprint, a supervisor etc. Get them to agree to whatever it is that you want, now- it sounds as if this really is your debt- the early termination fee is part of your contract- however, get them to agree to something- then send that person a letter, documenting everything that happened in the phone call- CMRR- to that person directly. Ask them to sign something- that notes what you have agreed to, and then pay whatever it is that you agreed to pay. If its reporting incorrectly- thats another issue Brandy

This is touchy and people disagree here with the preferred way. I personally, prefer to have my credit report correct. If that means IIB, than it means IIB It is unlikely that you will "win" a lawsuit, considering she is asking you to give her the case number, and you are declining. Of course, one could say that she could call the court and find it. Either way, it's like asking them for info and they refuse it. Basically your refusing. The other thing is how old is the debt- when is it due to fall off? There is a good possibility they will never correct the trade line if you do not provide them the info. It is also possible that they really did not receive the bk filing notice. I had 1 come back to me, that the court mailed, I had to find a new address for. Could happen. I have no problem giving any creditor my BK number, your case number is your case number, there is no different discharge number. I would call her back with the case number, and date of discharge. Then I would follow it up with a CMRR letter to her stating what happened over the phone etc. I believe it looks better to have all my old debt remarked IIB, than to have debt still listed that I owe it. But again, thats just my thought Brandy

I just opened a new chase checking account after having it out with Fidelity's my smart cash account, and realizing that Fidelity isn't a "bank" and doesnt have to follow the same guidelines as a 'bank'. Right now i have a money market account locally, that my child support is deposited into automatically, and will become my emergency fund. I plan to have my direct deposit moved to Chase, next pay period, once all my paperwork is here from them. I have a few bills that are auto pay- my truck, insurance, and orthodontist payments. Right now, these come out of Fidelity. I am thinking of opening another account, checking, to set up all of my bills from, and have my deposit split, bill money to the bill account, and the household spending money to the other- thoughts? I opened with chase, because with a $100 initial deposit, and direct deposit within 60 days, I will receive $100 from them. Brandy