Help with my husband to discharge – bankruptcy, foreclosure, I need advice?

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My husband will be set next week, and he is on unemployment is not sufficient to pay our bills. Our major expense is our home. It sucks all of our revenues. We have a 1 and the second mortgage. We tried to sell our house for six months without luck Oever. We need 152,000 for two loans, and the best offer was $ 119,000. I know that the second mortgage company would not agree to a short sale because they always end up nothing. My question is what do we do? The debt that we have other is a car. Should I file Chapter 7 and the delivery of the house, or we could not declare bankruptcy and let the house go? Or if we do not declare bankruptcy, they can come after us for our money? ? Any notice of suggestions: We will not fail to be ready in a landfill or to live like a hermit – we already have a decent RNET-free with my people. As far as we both find a job – we’ve searched but found nothing. I also have a 2 years and must take into account the costs of care. It makes no sense to me, work for minimum wage, because I would everythign childcare, it would not help our income and pay for our calculations.

3 Comments
  1. Reply
    S P
    May 3, 2011 at 7:53 am

    First things first, you need to get to a bankruptcy attorney asap and find out what you qualify for. The attorney will look at both your incomes. If the home is in both your names and you want to keep it, they can run it thru a chapter 13 payment plan, taking the payments out of your check, instead of you paying the amount to the creditor. In a chapter 7 filing, you would have to have a job, be current on the mortgage and be able to re affirm the loan to continue to pay on the home loan as usual. There are options in the bankruptcy chapter 13, they would pay for your secured debts first, home, cars, and the unsecured like credit cards last. But, get in to see a bankruptcy attorney before you lose the home completely. Most will see you free the first time, after looking at your income, debts, assets and taxes, they will be able to tell you what you qualify for. You can get more information from the official bankruptcy website at http://www.usbankruptcy.gov Great site if you have little information on how a bankruptcy proceeding works. Yes, if you default, let it foreclose, they sell/auction you will be responsible for any balance and they can sue, garnish wages, and/or bank accounts up to 100%, bankruptcy is the only way to stop the garnishment other than paying it in full Good Luck!!

  2. Reply
    ontopofoldsmokie
    May 3, 2011 at 8:02 am

    Do not go first to a bankruptcy lawyer first. Go to a financial adviser first. You’ll need all your financial papers. They will be able to help you see where you are. You didn’t give info on what else is owed: credit cards, how much owed on the car, medical bills, emergency funds, etc…

    You need an evaluation from someone who’s business isn’t filing bankruptcy. You can always see a bankruptcy lawyer the day after you get an assessment from the financial adviser. Check out the site:

    http://www.daveramsey.com

    You’ll probably be able to find local financial advisers and financial peace class meetings. Bankruptcy is your last resort. It will ruin your credit so if you wait until your credit is dinged while you try to climb your way out of this hole you’re not really gonna be hurting anything anymore than it can be hurt.

  3. Reply
    David M
    May 3, 2011 at 8:30 am

    You’ve dug yourself a deep hole here. It took a good deal of time for it to happen. Any solution will take a good deal of time and be painful. It appears you’ve been living beyond your means even when your husband was employed. Taking out a second mortgage for anything other than upgrading your home or a real emergency was a bad mistake.

    No matter how this turns out, one thing is certain. Your lifestyle will be changing. It will be severely reduced. I suggest you start getting used to it by severely reducing your expenses. No more eating out, no more fancy vacations, no more new cars (buy only used and pay cash, after you file for any kind of bankruptcy your credit will be ruined), no more drinking, no more smoking, no cable TV, only cheap dial up internet, no jewelry, no fancy clothes, etc.

    Next, both of you find jobs. You will not be able live on unemployment. You both need to be working even if combined it is less than what your husband was making. No job is beneath either of you at this time.

    After doing all this, see if you can make ends meet. If not, then talk to a bankruptcy attorney but don’t expect this to solve all your problems. Be prepared to live in a dump and live like a hermit. Avoid bankruptcy as much as you can. Good luck.

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