My story...request for comments.

[gwar11d2]

Hi all,
Well I have been lurking around this site for about a month. Filing Chap 7 in a couple of weeks, but I thought I would share details on my story in hopes to gather advice from others and also maybe help someone else out. I'll try to update this thread as the process pans out.

2003 - Left Michigan hoping to sell house. This did not happen. Almost within 30-60 days of leaving the house, the value had dropped 10-15K (ok not so bad...)
2004 - Still could not sell house, working in Illinois now, affording a cheap apartment and continuing to pay mortgage in MI. Talked to my mortgage guy because I started using credit cards again. He assured me that taking out a home equity in the house could get me in a good position financially. Like most people I didn't think Michigan would drop as far as it had so I took out another $20,000 from the house... (BAD) Paid credit cards and put some money towards a second house (OK). Rented the house out, so I was still making the payments with rental money... I thought I was in the clear.
2005 - Lost tenant for 6 months, so bills started to get tight again. Gained a new tenant, yah!!! Met my now-wife, yah!!! life is sweet!
2006 - 2007 - many things happened during this year, got married, still kept tenants, and it was tight but money was manageable. Unfortunatly I took out debt to pay more debt a couple more times. Kept watching my house tank further and further in value. Wanted to just stop paying but everyone told me I would be ruined for life... I just kept ignoring the problem until the sewer system went out in the house. That was a $7k bill on top of other bills... My salary was depleting so were a lot of people getting laid off/quitting from the job that I had in Illinois. During a winter vacation down south my wife told me to start looking in places other than Illinois.
2008 - Sold the house in Illinois (surprised on that one) with not too bad of a loss...but I didn't want 2 rental properties. Got a new job in NC making almost double I did in IL. This is great....except all of the bills and credit cards are really catching up to me and all I could do is afford the minimum payments. Still managed to get a VA loan on a house that was cheaper than renting and it is my best loan to date.
2009 - Lost renters again... Just can't do this anymore... Stopped paying mortgage on the house in MI to pay bills here in NC. Money was coming in, paying cards off, but it just was too much to pay. I tried doing the rolling debt thing by paying things off faster. Then.... We got pregnant, then we lost the baby. Mortgage company from MI called me the day I lost the baby and we both just lost it emotionally and everything else.... We contacted an attorney and decided to do something about it. We qualify for a Chap 7 and he said we can most likely keep our 2 cars (nothing _too_ expensive... Jeep Wrangler and Chevy Aveo) and our house and get rid of everything else.

We file at the end of the month. Dropping off final paper work next Wednesday. I should have done this long ago, but I sometimes think things happen for a reason, and this is the right time now that we are settled in an area we really like to be in.

I know my situation isn't as bad as everyone elses, but I figured I would share.

Thanks for listening.

[frogger]

And thanks for sharing.....

Lots of things can pile on you in a hurry and at times it seems that you can come out, and then at times, you can't see any way out.

Finding the way out and into the future brings a lot of peace into your life. Good luck.

[jmc]

Lots of things can pile on you in a hurry and at times it seems that you can come out, and then at times, you can't see any way out.

Wow....that about sums up my last 18 months.

I realized that my own indecision/moral dilemma probably cost me far more in the ability to move my family forward in life than actual $ (although it was a LOT of $$ it's going to end up costing me in the near term).

Any time there's a big decision we have no assurances that we're making the right one - we've got pros/cons and ramifications of action/inaction. All we can do is make the best decision we can with the facts that we have.

I deluded myself into thinking that "things turning around for me soon" was a FACT.... It wasn't a fact. Now I believe and know in my heart that they WILL turn around for me because I've decided to be a participant in my own rescue - and BK is a part of that rescue.

gwar11d2 - I'm too new here to offer much insight/advice, but I've come to realize a couple things:
1) It's important to know you're not alone - good people have circumstances thrown their way too - even those who lived financially "sane" lives.
2) INDECISION is a killer. Call it paralyisis from analysis or whatever.

I've just finished putting all my paper work together and have an appointment with my attorney next week.

[gwar11d2]

Updates... I figured I would put my thoughts on paper.

As I'm waiting for the mortgage people to come and serve papers or people to call, I get nervous everytime I hear the phone ring, a car is parked outside my house, or my front desk secretary calls me to say I have a package at the front desk. I know everything will be alright, but wow...I didn't know I would start to feel this way.

I need to treat this like a business and just get over with it, but wow...

And yes: JMC, INDECISION is a killer.... Crazy indeed.

Thanks for everyone's kind thoughts.

[ease]

Sounds like filing BK is an excellent decision. Like most of us on this board, you fought the good fight.

[justplaintired]

Thanks for sharing your story. I am sorry for the loss of the baby too.

Welcome to this forum and hopefully alot of your questions can be answered on here. From reading your story you are making the right decision and this will give you a fresh start so many of us needed.

Good luck with everything

[bluemartini]

Hi all,
I know my situation isn't as bad as everyone elses, but I figured I would share.

I dunno, I think it sounds like you have been through the wringer.

I read your story and in some ways it reminds me of my own epic saga .... just hang in there and trust the process. Filing BK will release you from all of this and then you can just be a regular normal person again. At least that's what I keep telling myself.

Also too by filing BK you may have saved yourself a small fortune with the IRS since you were dealing with rental properties vs. primary residence. There's a grey area with the mortgage forgiveness act when it comes to rental properties.

That's kinda the situation I'm in. Big mess. Biggg mess, huge. Can't wait to get this off of my back. Thank God my foreclosure has not gone through yet and my lawyer says he can buy me some more time on that, until I'm able to file. I just have to get the effing money together and it's hard since I'm living paycheck to paycheck.

I have been going through collections hell for a year and a half now. Agh.

Anyway, good luck to you.

[NewLifeAhead]

Thanks for sharing and you are among friends. Welcome to the forum. Good luck with your filing. I am sorry for your loss. Hopefully, 2010 will be a great year for you guys.

[gwar11d2]

Just an update: All paperwork is in the hands of the Attorney's office. Signing/Filing is September 25th.



I just can't wait until this is all done and over with!

[Mi Bankruptcy]

Best wishes.. Don't beat yourself up too badly when you realize you wasted too much time juggling. Best wishes on your new job and future..Enjoy the relief.

[kym]

Well first of all Sorry about your loss of the baby..

Secondly, I think this is a great fresh start and once you do it you take a deep breath and actually feel the stress float away... Wishing you a wonderful end of the year...

[whipster1]

We all tried to get out from under the debt and associated problems before filing. The creditors do not make it easy so you must see it as a business decision, and nothing else.

Sorry for your loss. Things will be looking up for you very soon.

[gwar11d2]

The support here is well overwhelming...but in a good way. Thank you for all of your kind words.

[gwar11d2]

OK, so filing date was postponed until today due to my case being filed Federally instead of Locally for a house we had to leave in Michigan... I'm in NC btw. I hope this doesn't matter much or someone can shed light on what the above means.

Anyway, hopefully by tomorrow afternoon I can finally call back the creditors that have been pounding my phones and kindly tell them my case #!

Any kinda thoughts or wishes appreciated...it's been a long journey so far!

[gwar11d2]

Well, got my official filing notice of the 341 today! Of course I'm unsure like a lot of folks here, but wow...lots of stuff happened to be able to get a Chap 7... Glad to have gotten this far...just a few more months to go! Updated my "signature"