Considering filing for Chapter 7

[prepyboysh]

I've been considering filing bankruptcy recently after doing some research. Here is my situation:

I'm upside down on my mortgage with $320k owe and value of approx $260k. House was bought with sibling and we split the $2400 monthly mortgage. We're current on the mortgage.

I have $40,000 in cc debt and about $1k in payments monthly. Haven't missed a payment yet, but I charge almost everything I spend on my cc's. They're all almost maxed out. But I haven't missed a payment because I usually pay the bill then proceed to use the cc until I'm near the max. I've been doing this for awhile now and obviously can't keep it up much longer.

I have some outstanding bills in collections, a small dental bill, and am behind on some utility bills. The big one is my electricity bill which is about $1K.

Monthly take home income is about $2400.

I have a contract with a cell phone, internet bill, and cable bill and am current on all these.

Will filing for bankruptcy allow me to walk away from everything? I just want a fresh start. I would like to walk away from my home, not worry about my cc debt, no continuing contract with internet and cable, no utility bill.

[newbie2]

I've been considering filing bankruptcy recently after doing some research. Here is my situation:

I'm upside down on my mortgage with $320k owe and value of approx $260k. House was bought with sibling and we split the $2400 monthly mortgage. We're current on the mortgage.

I have $40,000 in cc debt and about $1k in payments monthly. Haven't missed a payment yet, but I charge almost everything I spend on my cc's. They're all almost maxed out. But I haven't missed a payment because I usually pay the bill then proceed to use the cc until I'm near the max. I've been doing this for awhile now and obviously can't keep it up much longer.

I have some outstanding bills in collections, a small dental bill, and am behind on some utility bills. The big one is my electricity bill which is about $1K.

Monthly take home income is about $2400.

I have a contract with a cell phone, internet bill, and cable bill and am current on all these.

Will filing for bankruptcy allow me to walk away from everything? I just want a fresh start. I would like to walk away from my home, not worry about my cc debt, no continuing contract with internet and cable, no utility bill.

With a monthly take home of $2400 a month you can't afford the house, even with only paying 1/2 the mortgage. You can certainly discharge the debts, however your relative who is on the house note will have to do the same unless he/she intends on keeping the house and paying themself.

[keepinitreal]

It sounds like you're insolvent and eligible to file for bankruptcy. Get some free consultations with bankruptcy attorneys to determine your eligibility.

Your sibling will still be on the hook for the mortgage if you do file bankruptcy and walk away from the house.

[prepyboysh]

Thanks everyone for the quick replies. My sibling is prepared to walk away from the home as well, but doesn't want to file for bk. I'm assuming we can just lose the house through a short sale or foreclosure correct and we'll both be free of any obligation towards the house. I'm located in Washington state if that matters.

I'll be contacting a BK lawyer most likely today. From what I've read in this forum, I should stop paying my mortgage and cc bills and stop using my cc completely. Should I not pay my utility, contracted, and contracted internet bills as well? I can leave the house any day and will not be needing any of those services any longer.

[mrskal]

I think, that If you file for BK, you will not be held responsible for any deficiency judgement, but your sibling will. (difference of what house sells for vs. amount owed)