Bankruptcy?

[pigletof4]

My Hubby and I did this Late 2007- we really tried to keep up on all the expenses- house payments and cc- but after a rough year - we just had no choice but to look at other options- we had our house on the market for over a year with no bites- appraised at 199- sold at the foreclousure for 149-WE were very naive about the housing market

We got a lawyer and filed chap 13- with a repayment plan we can afford and no credit cards now- we are happy with the descion we made and know our credit will be bad for 7 years- with the new laws you do have to take 2 classes- we were able to do them on line- and it worked for us- currently no trips planned for us-

Sending good wishes

I don't know if it affects it for 7 years any longer. The reason I'm saying this is when I filled out the application to refinance our home last week, the guy helping asked if we had filed BK which we hadn't, but he said if we had it only counted against for the first 4 years. Maybe there is hope. I know when I worked in insurance alot of times people were out buying new cars within a year of filing.

 

[Stasieki]

I have a question, but more about foreclosure. We have been trying to sell our house for a year now (DH lost his job and had to take one in another state so has been traveling back and forth for a year). Anyways, we might be faced with the impossible decision to walk away from our house in FL. If anyone out there has been through foreclosure, what are the affects of it (how long on credit report, how hard in the future to get a mortgage or any other type of credit). We wouldn't file bankruptcy. Any help would be appreciated.

 

[Kickapoo Joie Juice]

I have a question, but more about foreclosure. We have been trying to sell our house for a year now (DH lost his job and had to take one in another state so has been traveling back and forth for a year). Anyways, we might be faced with the impossible decision to walk away from our house in FL. If anyone out there has been through foreclosure, what are the affects of it (how long on credit report, how hard in the future to get a mortgage or any other type of credit). We wouldn't file bankruptcy. Any help would be appreciated.

Look into something called a "short sale" where you sell your house for less than you owe on the mortgage. Call your mortgage company and see if they will agree to doing this, it must be done with their permission. You may be able to sell your house this way without walking away from it.

 

[Stasieki]

I had thought about a short sale, but think I can't do it b/c the house was 100% financed (YIKES - learned a hard lesson-will never do again - please don't flame me), so there are two different mortgage companies. I guess both have to agree to it. Currently, we are trying to rent it and if it rents by April, we will be able to make it work until hopefully we can sell for even a small loss. The last we had it priced was $60,000 less than what we paid 2 years ago and wouldn't have the money to come to closing. Thanks for your input. I may check more into that.

 

[grlpwrd]

Creditboards.com is the best. They really helped me out when I had to refi my house. Best of luck !

Ditto on creditboards.com. They really know their stuff. I would hate to see someone here take some imprudent advice. Yikes.

 

[alicenwonder99]

I personally know 2 people who have filed for bankruptcy. Believe me, it's not an easy thing to do. My friend tried everything for YEARS to get financially sound. Her husband just doesn't want to keep a job (but that's for another thread!), so she has had many years of paying late on bills, utilities shut off, repos, threatened foreclosures, etc. Her self-esteem has been so low for so long. A few months ago she just couldn't see the light at the end of the tunnel. She exhausted every single avenue of money. Her retirement fund is also completely gone. She is also suffering from depression. Her bankruptcy was filed 2 days after Christmas. And believe me, she doesn't live the life of luxury! A very modest home, she shops at Walmart and thrift stores, I think the last time she travelled was for her siblings' funeral! The worst part was that the bankruptcy wasn't even for alot of money. I think it was for less than $10,000!!!

My other friend filed for bk 2 years ago. Fast forward to now, and she is in the process of divorce. She doesn't make alot of money, her x isn't paying a penny in child support yet. Her house is in foreclosure, her car is getting repoed. She can't file for bk because she just did 2 years ago. But you know what? She paid all of her cc off. She's "selling" her house as a short sale. She's dropping her car and the keys off at the finance company. She bought herself a very old used car for $500 cash. She figures her and kids can live in her house a few more months before they officially kick her out. In the meantime, she's saving money to get an apartment.

Bankruptcy should be a last resort. It's not a pretty picture. OP, you should try reworking your budget the best you can. If things are that desparate, maybe a short-term part-time job could get you a bit out of debt.

To the poster that made a comment about living in a ghetto: if your living conditions are THAT bad, maybe you should save money up to live in a better neighborhood. I know someone who lives in an Indianapolis suburb, it's a very nice area! And very affordable. There is a woman at my work who lives in a "ghetto". She's always talking about the shootings, and how her child can't go outside. I think people need to rearrange their priorities.

HTH

 

[mmfan53226]

OP I too am in your same shoes, so I understand what you are going through. I looked into bankruptcy, debit management, debit settlement.

I started out at Take Charge and the monthly payment they set up would leave us with $6.00 a month to save. I would have been ok with that if DH and I were salary and our pay wasn't dependent on hours. If the hours are short one week, we are screwed.

Next stop debit settlement, but the company didn't work in my state.

Take Charge called to follow up and see if I was going to continue with the program and I explained that I can't have only $6.00 a month, so we disscussed all the above opitions. And they recommended I contact the cc companies know that I am unable to make payments and that I want to work out a payment plan. He said not to let the rep say no to the agreement. If they say know ask to speak to a manager, if not call back again. They did also say get EVERYTHING in writting. I am in the process of writting my creditors indicating I want to pay, but need to have a lower interest rate in order to get this paid off and avoid bankruptcy.

I also spoke with someone on the board and how she got a settlement and here advice pretty much confirmed with me that working with the cc companies was going to be my best route.

And I figure this way I am paying back everything that I charged, which I want to be held accountable for. But just not at the high interest rate.

HTH
Krystine

 

[mickeyfan2]

Well I pay all my bills too. What a judgmental and lame thing to say.

I find it distasteful that you would even dare tell me how you think I should live my life.

I can imagine you must think Dh and I are living the high life now that those debts are off our backs.

Ah wait, you must want to move into the ghetto with me! Lots and lots of empty, trash filled houses here...come on down and live in ghetto luxury with me! Live the high life here...please ignore the heavy base beats from the houses and cars, and the roaring highway just feet from the front door...apparently those are such luxury items! Don't mine the pit bull next door, they put him on a lease occasionally!

If you were sitting on this side of the computer, you'd go back and erase your comments because you'd see how off base they are.

I mean seriously...my entire excitement this month comes from finally getting hot water in our showers and kitchen after living here since the middle of Dec and from finally getting a replacement cabinet so we could toss the feces stained one from the kitchen. I must have missed the memo that this was *THE* life.

Do you get BBC America on your TV. I recommend you watch "How clean is your house". Kim and Aggie get feces off of stuff all the time and do it with stuff around your house. It is a great show and DH and I love to watch.

I think our septic tank is cleaner than most of the houses on that show.

 

[TheRustyScupper]

1) Contact your local Consumer Credit Counseling Service ("CCCS").
2) They are non-profit and WELL RESPECTED.
3) They are not some fly-by-night or johnny-come-lately agency.
4) They can help with
. . . debt service payments to work yourself out of debt
. . . advice regarding bankruptcy
. . . advice regarding consolidation loans
5) They are staffed with professionals.
6) I have had several employees use them and they were well satisfied.

NOTE: Bankruptcy, foreclosure and quick-sales are injurious to your credit rating. In some cases foreclosure and quick-sales are worse than bankruptcy. However, let professionals like CCCS give you that info/advice/counsel.

 

[brighteyes]

This is a very personal story. 12 years ago, just had my baby was living off very small maternity government benefits. Unemployment, not social assistance, I worked until the day before my son was born. I had broken up with his father BEFORE I found out I was pregnant so on my own. Never have received child support. If the 30,000 I am owed ever gets collected DS12 and I will go on a VERY long trip to WDW. ha ha

Was barely making enough to feed my baby and pay the rent. CC came calling and froze my bank account, rent cheque bounced because I had no access to my funds. I knew in a month or two when my son was a little older I could go back to work and get back on track. I ended up filing for bankruptcy for wayyy less than 10,000. Even years after, when I was making 26,000 couldn't even get a cell phone for 20.00 month. I have a few cc and pay 3x the min payment every month, cc have the lowest amount possible on them and had to get a cosigner for my first car, my second car I was able to get on my own.

The bankruptcy stayed on my credit for 7 yrs. up until then no credit for anything. I started with a secured card with Capital One and then got a regular VISA. I consolidated my cc last year with my payments I was paying for my couch. BIG MISTAKE - the couch would have been payed off by now, but I will have them paid off 2 years early, by next year. The consolildation company was linked to the furniture company. Only consolidated one of my small cc with the couch as interest was cheaper on my other cc. They also dinged me with insurance, which I said I didn't need as I knew I would not be working and would be attending school. He said I could take it off if I didn't need it. When I went to take it off he said I could, but would have to refinance for new loan amount.

It has been a long road, but b/c I my funds were frozen I felt I really had no choice. As soon as I got a job, I would have been able to pay everything but had no support and could not find anyone to look after a 3 month old who was sick ALOT. So once he turned 9 months old, I got a job and was back on my feet.

Also, a few years ago, I was behind on utilities a few months because paying for daycare cost me 500.00 in the summer and put me way behind so I cashed in some savings I had, and at the same time checked my credit report. There was some bill on there from a long time ago I did nt even know about so I offered to send a cheque asap and they settled for 80%. It was only a couple hundred dollars but I was willing to pay it in full but she said no need to.

I am back on my feet, but will have a student loan to start repaying soon. I think I will take some of my income tax return and pay some of that off before interest hits.

BTW, I am still a single mom, do not own my home, just rent, and lease my car as I used to work out of town and every used car I had cost me 3,000 -5,000 a year to fix. So I figured I am better off leasing a car, knowing it won't break down on the highway in the middle of a snowstorm and knowing what my cost is every month rather than being surprised.

I know it is hard when you are in this situation, seek advice from professionals, and make the best choice for you. Good luck.

Stephanie

 

[aka-mad4themouse]

Closing this thread as it is apparent that there is more interest in posting off-topic jabs at another poster than there is in offering the OP any further help.