Bankruptcy or not? I'm caught between a rock & a hard place..?
I have defaulted on my mortgage & my bank has refused to modify my loan & they are now threatening foreclosure. I have an additional ,000 accumulated in debt. I decided to file for a Chapter 13 but I’m now seriously thinking of withdrawing from it. I don’t want a bankruptcy record on my credit I know my credit is worthless at this point but I think it’s worse when you have a bankruptcy on your credit. Should I just walk away from my home & let them fore close it? Should I file a 13 & stay in my home which is way ‘underwater’—I owe more than the home is worth. Do I have a better chance starting all over again & try to "fix" my credit without a bankruptcy hanging over me? I’m so confused I don’t know what to do? HELP!!!
Posted September 1st, 2010 in When To File Bankruptcy. Tagged: bankruptcy record, better chance, chapter 13, foreclosure, home amp.
I would say that you don’t need to see a financial advisor; you need to see a bankruptcy attorney.
Filing Chapter 13, 7 etc will NOT give you any guarantees that your home will not be foreclosed on. It may slow that process, but if you are not paying the mortgage payments in full each month, you can lose the home.
It does not matter what the home is worth, or that you owe more than its worth. That was not in your mortgage contract. What matters is can you afford the payments? If not, you will lose the home no matter what legal action you try.
Also CH 13 means that you agree to continue making payments on all your other debt. So you are not "fixing" anything. You have bankruptcy mark on your credit, and still owe the money. Your home can still be foreclosed on no matter what you do if payments are not being made.
I would not be engaging in legal matters if you don’t know what you are doing. The people who are up against do know what they are doing, and they are not there to represent your interests.
Bankruptcy is 10 years on your credit now (since 2005) no matter what chapter is filed.
http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre03.shtm
Also ask the attorney about the risks of receiving a 1099-C.
http://credit.about.com/od/reducingdebt/a/cancelleddebt.htm
Get proper legal advice.
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Bankruptcy or consolidating?
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Disclaimer:
September 1st, 2010 at 4:37 pmI am not an attorney; the above should not be deemed as legal advice. Please seek legal advice from a licensed attorney for all legal questions.
I think you need to see a financial advisor.
September 1st, 2010 at 4:37 pmLook, your credit is shot. File Bankruptcy but let them have the house back and start over with a clean slate. It will be easier to fix with the Bankruptcy.
September 1st, 2010 at 4:37 pmAfter ten years the Bankruptcy is resolved. Some companies are glad to see you after a bankruptcy. They know it will be at least ten years before you can do it again.
September 1st, 2010 at 4:37 pmHate to say this, but if you are going to lose your home already and are having problems paying your other debt your credit record is already hurting. In your case, just like mine 8 years ago, bankruptcy gives you the breathing room needed to set your life back on track and hopefully to learn how to better handle your money. After my bankruptcy left my credit record at the beginning of this year my credit score was in the mid 700’s because of the life lessons that this bankruptcy taught me. I also had no problem getting a three thousand dollar credit card once I got my first job out of college about 3 years after my bankruptcy.
September 1st, 2010 at 4:37 pm