Hello Everyone!
First, I would like to thank all of you who contribute to this forum. Because of your generous time, you all have made many feel a whole lot better and have given guidance to those of us facing challenging times.
Instead of giving the "story" of how I have gotten to this point (because we are all here even if we took different roads), I will give some numbers and facts, and then follow with questions. Any input or feedback is greatly appreciated.
-State: CA - condo
-1st Mortgage: $399,999 (about to hit 90 days late. Haven't paid since Aug.)
-2nd Mortgage: $98,000 (about to hit 60 days late? Stupidly paid Aug. on Sept 14)
-Value of home: approx $250k-$260k (based on most recent sale of exact floor plan)
-Credit Card balance: $65k (husband name only) CURRENT
-Credit Card balance: $6k (wife name only) CURRENT
-HOA: $240/mon (1 month behind)
-Student Loan for wife: $40k (in unemployment forbearance, federal loans and I know NOT dischargeable)
-Met with 2 lawyers. First is also a RE broker, recommended BK. Loan mod not an option. Second stated we only qualify for Chap. 7
Questions:
JOINT OR SINGLE?
1. Should we file BK7 only in husband's name since mortgages and CC's are in his name only?
2. Wife is authorized user on mom's AMEX, if we file joint BK, will this affect primary card holder (mom)?
3. Any benefits to filing joint or single? Recommendations?
WALK AWAY OR STAY?
1. Torn between staying in home until forced to move out (notice of foreclosure sale) and continuing to pay the 1st (if we can get lender to bring current--possible?) Reasoning behind this is that post BK, we might never be approved for similar or better home because of income. Rent for our exact condo is equal to what we would be paying for 1st+proptax+HOA. Aware that second might come back to haunt us.
2. Try to modify 1st loan before filing?
3. Best time to file if wanting to "save" more money by staying longer rent-free? (if we decide to walk away)
BEFORE FILING
I know we need to close our checking accts tied to any of the credit cards.
1. Do I need close our only joint acct with Wells Fargo if I don't file? Or can I just remove my husband from account?
2. Which banks do you recommend to open accounts at? 2nd lawyer said Wells Fargo and Union Bank freeze accounts. No CC's with them though.
3. Been planning on buying more life insurance, do we need to do this before filing?
4. Was planning on downgrading home stuff, like cable and cancelling subscriptions. Should I wait, since this will affect expenses?
5. Should we buy a car? Our current cars are older and are paid off. One car may give up in a year's time.
6. I am currently unemployed and my 2nd extension for my benefits will run out in 3 months. Do I need to wait until AFTER discharge to look for and accept a job?
7. Citibank has sent me a letter that they are raising rate to 29% or I can close the cc to prevent the change. Should I even bother closing this one to keep the lower rate?
8. Because we will not be paying creditors, any money saved before filing (not much).. should we keep out of the banks?
LAWYER
1. Should I go with someone who I met with during initial consult, smaller firm in his name, who is also a RE broker? or a larger firm specializing in BKs that might have more resources available to them (initial consult was with an "BK analyst")?
I know I have a few more questions. I have been reading this forum daily since I discovered it a couple of weeks ago. Let's just say, I haven't slept at a normal time since then! I have learned quite a bit, but there is just so much information out there. I thought it best that I post my information and ask for your opinions. What I have learned through your posts has helped me to formulate better questions for lawyer consultations. I plan on meeting with at least 3-4 more, to not only get more answers, but to find someone I feel comfortable with. This is a life-changing decision to file BK, and I know it's important to trust my lawyer.
I do sometimes find myself questioning if this is the path to take. I have read information on loan modifications and now have started to read info on debt management or relief programs. But I think I am in denial if I think we can get rid of huge debt in our current situation. I know I need to take the emotion out of it and just face the facts.
Thank you again for your input, and for putting up with the novel of a post! =) Please let me know if you need more (or less) or specific information!
First, I would like to thank all of you who contribute to this forum. Because of your generous time, you all have made many feel a whole lot better and have given guidance to those of us facing challenging times.
Instead of giving the "story" of how I have gotten to this point (because we are all here even if we took different roads), I will give some numbers and facts, and then follow with questions. Any input or feedback is greatly appreciated.
-State: CA - condo
-1st Mortgage: $399,999 (about to hit 90 days late. Haven't paid since Aug.)
-2nd Mortgage: $98,000 (about to hit 60 days late? Stupidly paid Aug. on Sept 14)
-Value of home: approx $250k-$260k (based on most recent sale of exact floor plan)
-Credit Card balance: $65k (husband name only) CURRENT
-Credit Card balance: $6k (wife name only) CURRENT
-HOA: $240/mon (1 month behind)
-Student Loan for wife: $40k (in unemployment forbearance, federal loans and I know NOT dischargeable)
-Met with 2 lawyers. First is also a RE broker, recommended BK. Loan mod not an option. Second stated we only qualify for Chap. 7
Questions:
JOINT OR SINGLE?
1. Should we file BK7 only in husband's name since mortgages and CC's are in his name only?
2. Wife is authorized user on mom's AMEX, if we file joint BK, will this affect primary card holder (mom)?
3. Any benefits to filing joint or single? Recommendations?
WALK AWAY OR STAY?
1. Torn between staying in home until forced to move out (notice of foreclosure sale) and continuing to pay the 1st (if we can get lender to bring current--possible?) Reasoning behind this is that post BK, we might never be approved for similar or better home because of income. Rent for our exact condo is equal to what we would be paying for 1st+proptax+HOA. Aware that second might come back to haunt us.
2. Try to modify 1st loan before filing?
3. Best time to file if wanting to "save" more money by staying longer rent-free? (if we decide to walk away)
BEFORE FILING
I know we need to close our checking accts tied to any of the credit cards.
1. Do I need close our only joint acct with Wells Fargo if I don't file? Or can I just remove my husband from account?
2. Which banks do you recommend to open accounts at? 2nd lawyer said Wells Fargo and Union Bank freeze accounts. No CC's with them though.
3. Been planning on buying more life insurance, do we need to do this before filing?
4. Was planning on downgrading home stuff, like cable and cancelling subscriptions. Should I wait, since this will affect expenses?
5. Should we buy a car? Our current cars are older and are paid off. One car may give up in a year's time.
6. I am currently unemployed and my 2nd extension for my benefits will run out in 3 months. Do I need to wait until AFTER discharge to look for and accept a job?
7. Citibank has sent me a letter that they are raising rate to 29% or I can close the cc to prevent the change. Should I even bother closing this one to keep the lower rate?
8. Because we will not be paying creditors, any money saved before filing (not much).. should we keep out of the banks?
LAWYER
1. Should I go with someone who I met with during initial consult, smaller firm in his name, who is also a RE broker? or a larger firm specializing in BKs that might have more resources available to them (initial consult was with an "BK analyst")?
I know I have a few more questions. I have been reading this forum daily since I discovered it a couple of weeks ago. Let's just say, I haven't slept at a normal time since then! I have learned quite a bit, but there is just so much information out there. I thought it best that I post my information and ask for your opinions. What I have learned through your posts has helped me to formulate better questions for lawyer consultations. I plan on meeting with at least 3-4 more, to not only get more answers, but to find someone I feel comfortable with. This is a life-changing decision to file BK, and I know it's important to trust my lawyer.
I do sometimes find myself questioning if this is the path to take. I have read information on loan modifications and now have started to read info on debt management or relief programs. But I think I am in denial if I think we can get rid of huge debt in our current situation. I know I need to take the emotion out of it and just face the facts.
Thank you again for your input, and for putting up with the novel of a post! =) Please let me know if you need more (or less) or specific information!