Got ourselves in a situation here. I will just give you the facts... we have about 16K in total debt to credit cards and secured and unsecured loans. we have two car notes we have a home note as well. Our home note is VA and we are 2 months late. Due to not being able to find a job after moving to the states and overloading ourselves with debt, we have talked to an attny and they gave us two options chp 7 and 13, either one we can throw in the house...(we are waiting for base housing) we don't mind getting rid of the home but we are looking at the bigger picture. We still have a long career ahead of us before retirement, the BK will be off the report by then, we might want to buy some land in 4-6 years for use of later on to build. Should we do the ch7 or 13? How much difference between the two besides you are paying your debt off with one of them and able to keep the home. Since we don't want the home should we do the 7 and still keep the two cars for transportation to and from work. I do have a job but pay is monthly, makes it even harder for bills. Paychecks won't arrive until Jan 1. How long should we expect before they tell us to get out of the home if we file first week of Dec? I have heard around 6 months. Looking for any advice need to make an appt. today with the attny. Thanks in advance!
Why are you going to file a BK for $16k in CC debt, a house and 2 cars? Hardly seems worth it unless you are in a half a million dollar house and drive an Escalade and the most expensive BMW. I am being sarcastic but do mean well here. Can't you sell the cars and house, and use any little bit to pay on the cc's and then pay the rest off on time? Have you really considered the bad side of a BK?
we want to file to get a new start. We can afford to keep the cars but not the house. we need to keep the cars to get back and forth to work, We don't make that much money. Eventually we need to start saving and we won't be able to with all that debt. Why does it seem to be such a shocker, if we don't plan to purchase or house, or need credit anytime soon, why wouldn't this be a way to go?
from a lenders standpoitn chapter 13 is about is bad as you can get...CCC is the only thing worse.....I KNOW I KNOW it doesnt make sense but this is how lenders look at it.
Try not to file BK. I'm not an expert just someone hwo has been there. Some of the expert can chime in here, but my suggestion is let the CC go and try to sell what you can and keep the house. Read the forms as much as you can to clear the CC off your report. Just my two cents.
so do you think a 7 would be better? Either way we are throwing in the house we just can not afford it. If we kept it we would keep our ckbook at a zero balance most of the time. I have very little in my name except joint credit cards and a furniature loan, so my spouse will have both vehicles still and my furniature loan as positive tradelines correct? If we continue to pay them off no lates that will help, right? We won't be in need to buy a home for at least 12 years, in which BK will be gone by then. any more advice would be helpful....
lowscore--financially we can not keep the house, is BK that bad? I have people in my family that have done it more then once and now have a beautiful 300K home and cars, I hope I am not acting stubborn but I really want this just to all go away I am tired of credit cards calling and not being ale to have a bank account, yeah we got ourselves into it, but we want to start over and do it the right way. Does anyone know how long it will take for the foreclosure to go through? If we file Dec 1 when should we expect to have to get out of the house?
lowscore--financially we can not keep the house, is BK that bad? I have people in my family that have done it more then once and now have a beautiful 300K home and cars, I hope I am not acting stubborn but I really want this just to all go away I am tired of credit cards calling and not being ale to have a bank account, yeah we got ourselves into it, but we want to start over and do it the right way. Does anyone know how long it will take for the foreclosure to go through? If we file Dec 1 when should we expect to have to get out of the house? If we tried to sell the home we wouldn't get nearly what we owe on it since the market is declining...
still need more help..... I guess since we don't know your whole situation, we cannot really give the best advice. This decision is absolutely yours. If you trust your relatives advice as folks you know, of course it is completely up to you. However, I think you will regret it. I and others on this board speak from experience. I cannot seem to comprehend why people want to file BK for 16k in CC's and a house but again, I do not know your situation. If it were me, I would quit paying on the CC's then and put that money towards the house payment. Believe me, I will tell u that BK is not a bed of roses. BK was and is supposed to be the LAST RESORT when all else fails. You say you are not going to get another house for 12 yrs yet, but your plans may change. You may need to have a loan for something else within the 12 years you are saying you won't get a house. You WILL pay DISGUSTING interest rates, worse off than if you just had a judgment and charge-offs. BK is the ultimate no-no to a lot of banks and lenders and as common sense would tell one, BK frees a person of all debt, so theoretically you will be a FAR LESS risk than someone with a lot of debt. However lenders think with a completely different mind! Good luck with whichever route you choose!
