O.k. for those of you who know about my situation and we have an appt with an attny next week to file chp 7 quick rundown we have about 14K in debt a 2300 secured furn loan two vehicles and a home. We owe three months due on the house right now...if they will work with us and let us make payments should we not do the BK and let our credit cards charge off, then we could use the tax refund to help catch up, then sell the house and maybe get what we paid for it? Or would it be wiser to just do a chp7 and throw in the house? We will need to sell it anyway in about 4-5 months since we are going to move on base...it will be living paycheck to paycheck with the house until we move on base, but which is the better? I know in a few years I can dispute the c/offs can I dispute a BK the same way in a few years? I am pretty sure the mtg company will work with us since it is a VA loan...with a chp 7 we can start rebuilding in 6 months with all of those charge offs it will be hard to start rebuilding for a few years. I really need some advice you guys, what do you suggest? Thanks
bump....please help! This stress is really getting to me, hubby says we got a certified letter in the mail today, from the mtg company...they are offering a couple of different options instead of foreclosure, so we will see...any info and advice will be helpful.
The general opinion around here is that you should avoid BK if at all possible yes, it is true that you can start rebuilding after BK but it will still stick around and haunt you for 10 years BK should only be thought of as a "last resort" It sound like you have options with the mortgage company, and that you will hopefully sell the house and make back your money Just hang in there on the credit cards, and the process to rebuild after charge-offs will be a lot less than it will take to rebuild after BK just my opinion...good luck
Well the mtg letter only gave us three options, to make our payments and extra to make up what we owe, compromise sale, and deed in leau of foreclosure...we can't even afford to make the regular payment how in the world will we make up and then some...Compromise sale, we will not get what we paid for it, and then we still have these other bills. If we do a BK right now I just want it gone and out of the house note...which is the better 13 or 7? Throwing the house in both, we could pay off the 13 in about 3 years to their 5 year plan, would that be beneficial, or would 7 because then we would want to rebuild since we might want to buy another home in about 4 years. In a 13 we will have one vehicle tradeline that will not be included, if we do a 7 we will have three tradelines that will stay good and not be included they are secured. What are our chance of getting a mtg after a 7 in about 4 years? I know this is complicated I need the help!
I disagree. A bankruptcy can be a huge stress reliever since there is nothing to do after except start rebuilding. You will have time to dispute the bk on credit reports after all is said and done. Mind you, I am not an advocate of bk but for some it is the only way out from under the debt and a fresh start. I also beleive if you can file a bk7, you should go that route, You have sacrificed to file, why would you want to stay indebted to the creditors for another 3- 5 years? It's still going on your cr's whether it's a 7 or a 13. Atlanta makes a good point. We are post bk7 2 years in spring, we were in foreclosure and saved the house, but I can't tell you how I wish we had sold it. There are times when it is a real liablility and not an asset. If you can find a short sale on it, then I would go that route unless you have some equity, which the bk trustee will take anyway. If you have no equity, you can let it go back, and you will qualify again in 2-3 years for another mortgage per RCB mortgage CO. We were just going to let our house foreclose, but my husband couldn't do it, and we cashed in the last of a poorly performing stock to save it. We have been rebuilding credit now for just over a year and our ficos are in the 700's, we already qualify to refi on our home with Countrywide, however we are already at a low 6% with 10 years left on a 15 year mortgage, and we qualify for a 5.9% B of A car loan if we wish, but I'm not ready to part with the money, I just keep putting away what I can every month. There is life after bankruptcy, there are many on this board to prove it, we are one of them. Again, for us, it was lengthy unemployment due to a corporate buyout, stock market crash, not overspending that caused this and when my DH did find it work, it was less than half of what he made, but we eat, sleep at night, pay the bills, and are getting by just fine. You need to do what is best for you, it turned out to be the only answer for us, and we are now on our way to "the old days."
thank you for the advice, it is very hard for us to make this decision my hubby just wants it over and done and to get back on track...I think letting the house go back is the best cause we really can't afford it anyway even if we did do a 13. Filing date is thursday and we are nervous! I hope all goes well as planned...thanks again you guys, I realize there is life after BK but it will be rough who would expext anything different...Just worried about the foreclosure process, and how long until they will put us out? Any ideas on how to bide time until Mar-April when we will have a place to live? Thanks again
I'd be surprised if they evict you before April. If you file in Dec, your bk will probably be discharged in March. Then they have to go through the legal challenges of evicting you and in Texas, that's a hurdle.
so it has to be discharged first then we will have to get out? Sorry if I sound silly just don't know how the system works...
sorry my attny assistant did say it could be from two months on, but of all I am reading that is on the short side...I just want to make sure
To get posession of the house before discharge, but after the filing, they would have to file what is called a 'relief of stay' motion. If the judge approved that, then they could begin eviction proceedings. Very few times does it happen that quickly. I've heard of people who lived there for free for over a year. It really depends on the creditor and and their inclination.
If its included in bk. Teresa, Texas is a nonjudicial foreclosure state (1st lien only). What that means is that at some point they have to sell it on the steps of the county courthouse on the 1st Tues of the month. They also have to give you, I believe, 21 days notice. I'm trying to find the exact explanations now.
Ok here, is a pretty good layman's explanation here: http://www.realtytrac.com/education/noframes/documentation/HowToBuyForeclosures7.html See all the different time elements that must be met? Ask your lawyer if they can or can't start until a relief of stay is granted.
I hope I am not being stupid here, but they have to happen in that order, or are they happening all at once? thanks
