My husband and I need to file chapter 7 personal, which will also include business debts he personally guaranteed. We both have a lot of credit cards, some owing $17,500 on just one.
We are working with NACA.com to do a loan mod on our first mortgage $1326 which is with countrywide/boa.
We also have an appt with our bk atty to file the chapter 7.
I cannot seem to get a clear answer from anyone as to which we should do first. Here are our concerns.
1.if the loan mod takes too long, it will give creditors time to file judgements or wage garnishments
2. while we are waiting for the loan mod to go thru, we have to manage to pay business and personal creditors enough to keep them "off our back" and keep our company going until the bk when we can open the new company
3. if we do the bk first, people have told me that the judge MAY not let us reaffirm the mortgage and then the lender will not work with us
4. others have told us that we can file bk, have an immediate ltr from our atty sent to naca giving them permission to work with us, even before the discharge. then when we go to court, we can tell the judge we are already working with the lender so he may be more likely to let us reaffirm
Anyone have real knowledge of whether or not we should bk first or get the loan mod first? If we wait for the loan mod, should we send letters to our credit card people telling them of our "hardship" that we hope is temporary and that we can send them $50 a month temporarily until things are better. Some of these cards are $600 minimum payments. They all have a "hardship" program but between us we have probably 6 on mine (they have been on a dmp plan for 3 years but I can't afford it anymore at $801 per month) and he has probably 6. Paying $50 on each will even be a stretch. But will tht at least show that we tried to work with them if they try to put a judgement on us?
Any advice appreciated! We meet with naca again tomorrow and our atty on Thursday.
We are working with NACA.com to do a loan mod on our first mortgage $1326 which is with countrywide/boa.
We also have an appt with our bk atty to file the chapter 7.
I cannot seem to get a clear answer from anyone as to which we should do first. Here are our concerns.
1.if the loan mod takes too long, it will give creditors time to file judgements or wage garnishments
2. while we are waiting for the loan mod to go thru, we have to manage to pay business and personal creditors enough to keep them "off our back" and keep our company going until the bk when we can open the new company
3. if we do the bk first, people have told me that the judge MAY not let us reaffirm the mortgage and then the lender will not work with us
4. others have told us that we can file bk, have an immediate ltr from our atty sent to naca giving them permission to work with us, even before the discharge. then when we go to court, we can tell the judge we are already working with the lender so he may be more likely to let us reaffirm
Anyone have real knowledge of whether or not we should bk first or get the loan mod first? If we wait for the loan mod, should we send letters to our credit card people telling them of our "hardship" that we hope is temporary and that we can send them $50 a month temporarily until things are better. Some of these cards are $600 minimum payments. They all have a "hardship" program but between us we have probably 6 on mine (they have been on a dmp plan for 3 years but I can't afford it anymore at $801 per month) and he has probably 6. Paying $50 on each will even be a stretch. But will tht at least show that we tried to work with them if they try to put a judgement on us?
Any advice appreciated! We meet with naca again tomorrow and our atty on Thursday.