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    Give up the house

    I hope I am posting in the correct area. This is quite complicated, but the formun has been a tremendous amount of help and support. We moved forward to file a Chap 7, keeping the house. We have 21 year twins in college utlizing total loans. We received and reviewed our petition to file from the attorney in 05/09. Some of the medical expenses will occurr this year so I don't think we can claim, which puts us around $100 DMI. We had to tell the kids has there isn't any way for them to obtain private loans without co-signer for college. Our son has one more year, daughter 2 more years. Also, our daughter rolled her lease forward at school prior to discussion about BK with us.(which we had signed off on in 2008). I now think we are liable for the $365/mo. This then puts us in a negative DMI. I am thinking at this point we should just surrender the house (payment is $1333./mo including taxes and insurance.) The loan is set to go adjustable in 2 years and we are upside down in value but current. If we are to ever get a fresh start we should just give it all up. We need to get the kids in school fulltime to keep them on our health insurance and get finished to they can become independent. In order to really get a fresh start all living expenses need to be cut drastically as even if we were to keep the house and survive a Chap 7 the private loans will start to come due 06/2010. We had co-singed those and with little to no income until the kids finish we will have to pay those. Also, my husband is 58 and the job situation is not firm, we have very little in 401k in addition to 2 loan against the 401k.
    My questions: if we surrender the house to the trustee in a Chap 7, we need to find a rental. I know it is difficult with BK but can use my brother with very good credit to co-sign a lease. Do you think we will have an issue finding a rental? How soon will we have after filing or after the 341 to move and find a rental?
    We live in cleveland ohio and see that the housing costs allowed are $1000/mo for a family of 4. We would like to find something to rent lower than that but not sure how this will affect petition and DMI
    However, even with a Chap 13 we would want give
    The biggest fear...no place to live. My biggest fear is no place to live and my anxiety and panic are growing by the day. If anyone has suggestions we would appreciate. thanks.

    #2
    Not sure I can help you much but just mention a few things. My lawyer actually advised me to go find a rental before we filed. That way there were no questions or issues with my credit and getting approved. Also, in today's market, the qualifications to get a rental (at least in my area) are a little more lax. They aren't scrutinizing people like they used to because they understand the situation.

    Also, I wanted to note about the student loans. I have some private loans with Chase as well as credit cards. My student loans were deferred until 10/2010. As soon as they found out about the bankruptcy they changed the due date on my loans to 7/09... so, while I'm probably not going to pay them until I'm discharged, they made them due immediately. So, not sure if you will experience the same thing...but always good to have a heads up just in case.

    I can't really comment on your other issues but I do feel your pain. Its not an easy decision to make or deal with. Its very tough and you will be stronger for going through it. Just keep the chin up and try not to worry so much. I know its easier said than done as I've even been freaking out lately in posts on the forum worrying about my situation! But you're not alone and you will get through it.
    BK Ch 7 Discharged 09/2009 | Anything I say can and should be used as friendly advice and sharing of experiences with an unbiased viewpoint.
    Scores: EQ 745 EX 704 TU 710 as of 08/15/2012

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      #3
      Giving up the house

      Thanks so much for your reply. We are going to try and contact the BK atty tomorrow to see what we can do. I am trying so hard to stay calm, as my husband keeps saying "we'll get through this". However, there is just so much anxiety and fear as we get futher into this.

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        #4
        Men seem to have an easier time being laid back and calm... my husband is the same way. It seems like I'm the only worry wart.
        BK Ch 7 Discharged 09/2009 | Anything I say can and should be used as friendly advice and sharing of experiences with an unbiased viewpoint.
        Scores: EQ 745 EX 704 TU 710 as of 08/15/2012

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          #5
          Hello....most landlords will rent to someone who filed BK jsut find someone nice and tell them your story. There are several options for student loans while in BK..try FAFSA.....my wife is a stay at home mommmy and is currently getting her MAsters and the BK does NOT affect govt backed student loans...jsut private ones.

          As far as DMI goes.....the TT (trustee) will use the County's avg median figure for your family size for rent or mortgage if you are surrendering your house.....whether or not you go below it or at it is up to you. I wouldnt go bragging to your lawyer or the TT at your 341 that your rent is $800 month cause then they could recalc your DMI and throw you into a 13. We are surrendering our house and our lawyer told us "IF" asked during the 341 to say that we are looking into renting but have not locked anything up yet. Dont forget if you let your house go, you have4-5 months before the bank takes it.....good luck...we are in Cleveland also and have our 341 in July....
          Filed Chapter 7 June 5th,2009
          341 Scheduled July 9th, 2009
          60 day club memeber and counting.......
          Last day for Objections Sept 10,2009...

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