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Debt Relief – Insolvency – Bankruptcy Information » Bankruptcy Help » I am thinking about filing for bankruptcy soon?

I am thinking about filing for bankruptcy soon?

About two years ago, me and my (then-expecting) wife bought our home for 220k. It is currently worth 120k. The market really hit us hard. The 2 year mark for the loan just passed and because of the crappy rate we got, our payments have gone up another 600 dollars. I stopped paying the HOA fees because I couldnt afford them anymore. They are going to begin garnish my wages for the HOA fees (Court order). I will no longer be able to afford my home.. I am super depressed about it, my life’s in shambles because of this. My neighborhood has For sale houses everywhere and Section 8 renters are ruining the nieghborhood with crime and drugs and their wrecklessness. I cannot allow my son to live in this poverty any further. I want out. I have contacted all those help agencies, but they have all said “tough luck” in their roundabout ways. My only solution now is to file for bankruptcy…

Will the world forgive for this? I know that raising the white flag will make it impossible for me to ever own a home again, but I fear, like countless of americans, it is the only solution.

what would you do in my shoes?? Please offer any help if you can. My 2 year old son’s future is counting on the advice of unkown people on this forum.


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6 Responses to "I am thinking about filing for bankruptcy soon?"

  1. PiggiePants says:
    The world doesn’t care if you file for bankruptcy. You do what you have to do. Your credit will be wrecked, but not forever. However, bankruptcy alone is not going to solve your problems. Only you can do that, and i wish you the best of luck.
  2. rusty_266 says:
    Pull the trigger. And the sooner the better. Every day to you put it off is one day you could have been using getting on with starting over. Everyone is entitled to start over, its part of the system. As for what comes afterward? Its not nearly as bad as you think it is. Its part of the mystique or the myth. We are taught to think that this is the worst possible thing that can happen. Its not. If you don’t believe me ask the other 100,000 people that filed for bankruptcy last month.

    After filing you will be able to get credit cards almost immediately at competitive rates. Smaller credit limits at first, $1,000 perhaps, but within 6 months of using that first card and making the payments you can have $25,000 worth of cards if you want them. I did. If you have a car loan that you will be reaffirming, then you can get another car loan immediately. As for another house loan? Give it a couple of years of successful payments of the credit you get after filing. And if you do want to buy another home you do want to get and use as much credit as you can whether you need it or not. I’m not saying to rack up a bunch of credit card debt. I’m saying to use the credit you can get. Pay for your groceries on a credit card. Then pay the bill in full when it comes in. You want to begin to rebuild your credit profile. The other option is an owner financed home, which in the current market is a very viable option.

    The effects of bankruptcy are greatly exaggerated. Think of it this way. If the bankers and lenders automatocally excluded everyone that has credit problems, foreclosure, or bankruptcy on their record, who’s left to loan money to? They will gladly work with you, they simply because have no choice.

  3. rayt721 says:
    I am sure that the world will forgive you but whether you forgive yourself is another story. Bankruptcy is an emotional process. What’s important for you to know is that if you have the kind of income to warrant a home that’s so expensive, you won’t qualify for a Chapter 7 (erase debt) bankruptcy. You might qualify for a Chapter 13 (repayment) bankruptcy. Only an attorney can advise you of that. All of your questions will be answered by a free consultation. If it comes down to a repayment plan, don’t file bankruptcy. Talk to a debt management company like Consumer Credit Counseling. They may be able to negotiate your loan or direct you to agencies that you qualify for. You are not the only household in the situation you’re in… talk to your neighbors. The odds are they are in the same boat.
  4. S P says:
    If you feel that bankruptcy is your last resort..Contact a local bankruptcy attorney and find out what they can do for you. Most will see you free the first consultation. You will need to provide your last 6 months of pay stubs, assets, list of all your debts and last 4 years of taxes. Once they review this they will be able to tell you what you qualify for. Either a chapter 7 bk or a chapter 13. In the chapter 13 you can keep the home and continue to pay thru the US Bankruptcy court. They would take the payments from your paycheck, but, it would put a stop of any garnishments against you now. The courts pay all the secured debts first and the un secured last. You would have to pay a retainer fee to an attorney, some will do payments, others want payment up front. A chapter 13 usually runs for 5 years. At the end of 5 years, the unsecured debts would be paid and you would go back to making the house payments. But, first you need to go and see one to see what you can do. As the last poster stated. The world isn’t going to care that you filed bankruptcy. A bankruptcy filing stays on your credit report for 10 years, the debts for 7 years. If you qualify for a chapter 7 and want to keep the home and are current on the notes, you can “re-affirm” on the loan. You will find out more about this with an attorney. Call someone today or Monday and get in to see one one a free consult…Good Luck!
  5. Diane H says:
    with the state of the economy, you are not alone.

    If Bankruptcy is your only way out, then do it now.
    stop paying everything and go to your nearest Government agency.

    they will help you to file. It will take a couple of hours, then you will be free. they don’t charge you.

    You will have to work out where you are going to live.

    I know no one wants to go bankrupt, but sometimes it is the only way out.

  6. Douglas L says:
    If you owe more on your home than it is worth now or in the foreseeable future, then cut your loses and run. If there is hope, then talk to your lender about renegotiating. They do not want the property back. If you can not make a deal then stop paying anything on the house or credit cards.Prepare for bankruptcy. Raise cash in your wife’s name unless she is on the hook too. If that is the case, get a safety deposit box at a bank and store your cash there. Have no money in your name. When the time is right, move to another place. Renting is probably your only choice.Once you have set up your new household then go bankrupt. Leave the old house clean. Turn over the keys to the bank. Inform the electric company etc.

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