Need advise!!!

[tadbitconfused]

Ok if we file we have to file chapter 13. But today I found out an option but it is very very costly. My husband has around 80000. in is IRA if we pull out the money we will take home around 45000.00 of that, this is enough to pay off all the credit cards and the deliquent truck, however we will still lose the house. I am ok with this, there is no way that we can recover the house it is worth less than what we owe and an adjustble rate mortgage to boot. The first should be ok with the sell however the second is another story. I am sure we can probably work something out with them. (maybe) If we file chapter 13 we will have to pay around 1000 per month for 5 years. I am confused need advise... all opinions appreciated..

[SinkingFast]

$60K to be free and clear of every thing WITH a retirement that'll be worth much more than $80K in 5 years in place.

vs

$45K to pay off Unsecureds and a potential repo, still responsible for a deficiency balance of a 2nd on house you won't own anymore, and no retirement.

Hummmm,..............

Keep the 401K and file.

JMHO.

[tater71]

I know that I'm new to the boards, but I agree with SinkingFast. Don't give up $35K of your retirement, which you worked so hard to build.
lori

[soccermom]

We tried to avoid bankruptcy by cashing out a chunk of my retirement plan. It only floated us for a year, then we ending up having to file anyway. I regret that it took us so long to file. I would still have my retirement money and be one year further to being done.

For us -- we got in trouble when my largest client (I am self employed) went bankrupt owing me 3 months of income. I had used credit cards during those three months anticipating my upcoming pay. Once I realized I was not getting my back pay we tried to catch up, but with the ever increasing CC interest it totally buried us. For two years I was paying only the interest payments. Even cashing in retirement only covered the interest.

I was embarassed to file. That cost us a whole heck of a lot of money.

I would consider filing and saving your retirement. I sure wish we had.

[CindyLou]

the numbers speak for themselves!!!! and if you don't file you will be stuck with the residual from the house if is it forclosed. Keep the retirement and file the bk. PLUS if your financial situation changes for the worst (God forbid!) you will have the option of chpt 7 and still have your retirement.

[CATCHMEIFYOUCAN]

Borrow just enough to pay the Bk Lawyer, work on getting a FRESH START !

CMIYC