150K upside down mortgage and 60K in debt...please help!

[mimijess]

I am sorry if I am confusing but here is my story:

I live in south FL and my house is 150K upside down, adding to my problem I have 60K in debt which 40K is a loss from a previous home (had to pay several months of mortgage when I relocated from KS to FL) and almost 20K in credit cards, furniture store cc's and other little stuff that adds up.

Income is 100K per year. We are a family of 5 with 3 kids and cost of living in South Florida is high.

Our income is considered good I guess, but paying 2,800 a month in mortgage, 2,200 a month in minimum credit card bills plus all living expenses and 2 cars, we can't afford ...I calculated everything we can cut or cancel, and I can save $200 per month for cable and cell phone (not much considering, $200 won't save me), we listed the house for short sale, so far no luck...we didnt pay the mortgage payment last month because we had no money left...

what should we do?? please help///shed some light...

[mimijess]

no one?

[Trixie007]

I think you didn't ask a specific enough question to get a response. No one can tell you if filing is right for you, or that you should file... Research your options, what Ch BK is available to you, what would be dischargeable, etc - go get some free consults. Good luck.

[mimijess]

Thanks for the input, but I thought that being upside down on a mortgage and having
60k in debt was a common subject and question in this board, that is why I posted...if I knew all the answers by doing research on my own, why would I and everybody post here, perhaps to get help?

[Trixie007]

You're right, it is a common subject and you definitely can ask your questions here - I was just trying to point out that you didn't actually ask a question other than what you should do, which no one can really tell you. What specific information are you looking for to help you figure out your situation?

[mimijess]

thanks, my post is not very clear, as I am very confused and stressed, can't think straight ..based on the numbers I posted, I don't know what to do...I always thought bankruptcy happened to "other" people, and now...with all the debt and high mortgage payment and being 150K upside down...bankruptcy might be the only way out to a "future"...

I am very upset that our credit scores will be crushed...plus, how am I even going to qualify to rent a place after the house goes on short sale? I read articles about renting with bad credit, but its not a def. answer..so I guess I need good luck..

thanks..im venting.

[aces67]

You should schedule a few consults with some BK attorneys. That way you will know what options are available to you.

Good Luck!

[imoverit]

you are right where we were a year ago. The decision was easy for us because we did not want to live in our house anymore. So walking away was a somewhat easy decision. So a year later we are filed, our house is under contract for short sale (it can sell or not, doesnt matter) and we live in a better place. For us it wasn't a decision of what to do, but HOW to do it .... Once you decide what you want to do, this site is a great resource for information and comfort than any other place I found on the web!! Good Luck to whatever you decide!

Also... we rented when we were 3 months behind on all of our bills. I told the realtor straight up what we were doing and he told the landlord. She was completely ok with it and just wanted an extra security deposit. It was the first house we tried for. So be honest, be upfront, you will be amazed how many people are in the same boat as you...esp here in FL!

[frogger]

what should we do?? please help///shed some light...

Be patient, and take the time to read and study the stickys and posts on this forum. There is a wealth of information here if you will take the time to digest it. After you have spent some hours reading, you will be a better informed person...

[Frshstart09]

MimiJess hi,

Here is my 2 cents...hope it helps..

If you want to stay in your home, get the mortgage current.

If BK is an option you are considering, stop paying your CCs (unless of course you've made recent big purchases or balance transfers, then make the minimum on those cards)

Begin living completely on a cash bases. Use your money for your living expenses (mortgage, cars, food, medical, clothes, utilities, etc.) and see how much you have at the end of the month. (This amount will determine your eligibility for Ch7 or 13)

Regardless, you should take advantage of free consultations of some local BK attorneys to see if your secured debt makes you eligible for Chapter 7, or the Debt Restructure BK of Ch 13. Good luck to you.

[Amy26]

I am also upside down on my home by 150k and had a lot of credit card debt. I, however, was unemployed for 6 months and was ineligable for unemployment. So, making the decision to file was actually pretty easy for me. Also, I do not have a family to consider. As others mentioned, we cannot tell you what to do...but only share our experiences. Filing has actually brought me some peace of mind that I haven't had for a long time about how I'm going to afford my bills. I'm also happy to walk away from a home that will take years and years to make good on again.

Definately do the consults...a good lawyer will make you feel comfortable about what your options are.

[tknj99]

hey mimijess,
im in South Florida as well and decided on the bk route on 1/19 of this year. It was sort of a breakthru for me as I kept living in a sinking ship and trying to figure out how i could sustain it.. It wasnt an easy decision with a wife and 2 babies to support.. but.. what killed me was having multiple rental properties that just started bleeding me dry.. Luckily i made this decision before resorting to draining my 401k.. as i had already drained any savings in the last 2 years..
So.. at this point, im keeping my primary residence which is underwater, but we will try to get another loan mod on it somewhere down the line. Also, have bought a newer car before the credit was shot. Stopped paying all CC's except for store furniture card. And living on debit/cash and keeping all receipts..
Once u make the decision.. its should be alot easier to plan for the future..

p.s.. if u need the name of good lawyer, lemme know...
Good luck
-tk

[mimijess]

Thank you all for you replies...I appreciate any advice!!! I really need it...you all know how it feels right??

[mimijess]

to add...I have appointments with 2 lawyers..
tk, would u mind to PM me the lawyer's name?

thanks.

[imoverit]

Thank you all for you replies...I appreciate any advice!!! I really need it...you all know how it feels right??

ABSOLUTELY know how you feel!!