Hello! I'm new here and my husband and I have been considering filing bankruptcy for little while now. We are meeting with an attorney on Monday to get some questions answers before we make a decision.
We are not past due on any bills, but we literally live paycheck to paycheck and can barely afford enough groceries in a month. We don't have a lot of a credit card debt (maybe $700 a month total in credit cards and car loans), and we have some medical bills. Our mortgage is what is really kicking our butts. We are upside down by about $10,000 and have to be able to refinance in a year. We have a two year old son and a baby on the way (due in Oct) so we are only going to acquire more bills come that time. In the end, we just want out of our house and want to rent (renting is much cheaper and we like the idea of having the freedom to move whenever we want). Anyway.. we are considering filing Chapter 7, but because we are not behind on our mortgage, we aren't sure how this will work.
I have heard some people were advised to stop paying their mortgage so that they get behind. But won't they see that we CAN afford to pay it, and that we're just choosing not to? And won't that hurt us instead of helping? I have heard it can take up to a year before a house goes into forclosure/you receive an eviction notice. If we are advised to stop making payments, then when to do we file for bankruptcy? Lastly, when would we go rent a new place to live in?
Sorry if these questions seem silly. I know we need to ask these questions to the attorney on Monday, but I was curious and wanted some answers sooner
PS We live in Colorado if this makes a difference on how things work.
We are not past due on any bills, but we literally live paycheck to paycheck and can barely afford enough groceries in a month. We don't have a lot of a credit card debt (maybe $700 a month total in credit cards and car loans), and we have some medical bills. Our mortgage is what is really kicking our butts. We are upside down by about $10,000 and have to be able to refinance in a year. We have a two year old son and a baby on the way (due in Oct) so we are only going to acquire more bills come that time. In the end, we just want out of our house and want to rent (renting is much cheaper and we like the idea of having the freedom to move whenever we want). Anyway.. we are considering filing Chapter 7, but because we are not behind on our mortgage, we aren't sure how this will work.
I have heard some people were advised to stop paying their mortgage so that they get behind. But won't they see that we CAN afford to pay it, and that we're just choosing not to? And won't that hurt us instead of helping? I have heard it can take up to a year before a house goes into forclosure/you receive an eviction notice. If we are advised to stop making payments, then when to do we file for bankruptcy? Lastly, when would we go rent a new place to live in?
Sorry if these questions seem silly. I know we need to ask these questions to the attorney on Monday, but I was curious and wanted some answers sooner
PS We live in Colorado if this makes a difference on how things work.
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