Where to live and When?????

[Allmixedup]

Hello all
First off, I love this forum and find it so helpful. I did a forum search on what I am about to ask, but still needing some sort of guidance. I live in Michigan and we are planning to file a chapter 7 in a few months. We are also surrendering the house. I am soo confused and finding housing afterwards. My lawyer says that we should move out before we file. Has anyone done this? I know the bk wont be showing, but the fact that we haven't paid the cc bills and the mortgage will be showing up. It just doesn't seem like we have enough time to save up for a place. The lawyer did tell us that we can postpone filing if we need to, but with my husband layed off, we are having a hard time coming up with the money to pay off the lawyer (1400) and then on top of it save up all kinds of money for a rental.

I guess I would appreciate any input anyone who has been in my shoes could give me. Thanks

[JRScott]

Your lawyer would like you moved into the new place so that he can accurately use the costs of it. Also once the bankruptcy is filed, the bank holding the mortgage will most likely file a relief from stay motion which will be granted. However even then in most states it will take them months to go through the foreclosure process to regain the home.

Try to concentrate getting him a job even if it is greeter at Wal Mart or flipping burgers at McDonald's, anything short term to tide you over.

[StartingOver08]

Specifically ask your lawyer why you need to move before filing.
If you can not use the mortgage amount in your petition because you are not paying it, then why would you not be allowed to use the housing allowance for rentals for your area?

I had to use the rental amounts because I was not paying the mortgage (this varies widely by district and has been discussed on this forum). But the foreclosure process has been a long slow one and I am able to build savings while my bk is now finished and the foreclosure is still in process. Make sure you ask your attorney if the Trustee requires you to move out within x days of the 341 if you are surrendering the house. In my district some of the Trustees require it and others do not.

[Allmixedup]

Thanks for the responses! The lawyer did say for us to be moved out before the bk was filed and that would need to use the exact amount of our rent. To Jrscott..actually hubby does still have a job, its just that it's in the auto industry and they keep laying off for 3-4 weeks at a time! (ugghh) !!! I am nervous that if we wait our credit won't allow us to find a place. At the same time if we don't wait, we won't have enough money. This to me, has been the hardest part of this whole process! I have to move my kids away from everything they love! I know they will get over it..but still my daughter is almost 13 and at that age where it will devestate her to leave her friends!
I was thinking of looking for a townhouse to rent because the deposits seem to be alot less up front..Does anyone have any experience getting approved from these management companies??? Will they ask you about your mortgage on your credit report??? Sorry for all the questions, I just haven't rented in a very long time..let alone in this kind of situation with the whole credit being messed up and all! Thanks for listening to me rant...lol!

[Justpoor]

I just talked to an apartment complex here in Florida and they saidthat intodays economy they are overlooking bankruptcy and foreclosures. They did no want to see you had been evicted from another apartment or owed another apartment money.

[Allmixedup]

Thanks Justpoor! That does help make me feel a little better about the whole situation. I'm sure there are soo many in our shoes right now and I haven't heard of anyone being homeless yet right?? lol

[novayalife]

Hi,
Hang in there. My hubby and I were approved in about 2 days with 2 property management companies. We had just filed for chapter 7 about a month before that. The agencies just told us we had to have enough income to sustain the rent and no collections from utilities companies nor previous landlords. Since you have been a homeowner you wont have landlord collections. Good Luck!

[dingdong]

Have you checked to see what the cash for keys offers are like in Mich.?

You may just get an offer right before you move.

Google Cash for Keys and your state and see what comes up. You may just get a little moving money before you go.

If you move before the offer , though, you won't get an offer.

What is your home like? NIce neighborhood and good condition?


might be something to consider if CFK offers are typical in your area.