I am looking into filing chapter 7 and am looking for thoughts on my situation. I have consulted 4 different lawyers but haven’t made a final decision on which to choose. I haven’t really received real world advice on the following question so am looking for help to fill in some gaps.
Back story- I purchased a foreclosure house right before the bubble collapsed. The house was the cheapest I could find that met my requirements for a few years. The house was completely gutted and had what I thought to be a “slight” basement water problem that I could easily fix myself. Fast forward 9 years and I have a high interest loan basement waterproofing loan totaling $13,000 and multiple credit cards maxed out used for home improvements. I thought not a problem because at the time I was expecting to sell the property for $20,000 profit which would be used to pay the debt. Wrong. The real estate bubble burst and my home is worth approx $10,000 less than whats owed and I'm drowning in debt. Oh yeah, and there is still moisture in the basement from a high water table that's not covered by the warranty as they got rid of “most” of the problem. So a property that's worth $10,000 less than i owe. That's if l can find a buyer that will even touch it with the remaining moisture. I've recently married and now have two very young children and my wife only works part time on minimum wage. She takes care of the kids while im at work and works nights as much as she can. So I take out more credit cards to support us on those months we’re a little short. Now I’m up to $30,000 in unsecured debt and not enough monthly income to pay back the debts as the “introductory rates” begin to vanish.
Sorry for the long story but we’re finally to my question. We’re considering forfeiting the home but are worried about finding a place to live when my credit is shot and my wife doesn’t have the income to sign a lease or mortgage on her own. I need a direction….i need advice. Keep the home and use the money I’m saving from my newly wiped credit card debt to pay down the house enough to sell it? All the while crossing our fingers that someone will still buy the house with the remaining moisture problems? Then there are the issues of trying to rent or buy because of my bankruptcy after we sell. Or do I forfeit the home and try to find a place to live all the while being turned down constantly because of the bankruptcy. Will I be spending the next 4 years of my children’s precious lives living in subpar apartments/rentals in bad areas hating myself for being a bad irresponsible parent while i try to rebuild my credit? I feel this is a no win situation and I worry for my 1yo and 3yo. I’m trying to do the best I can for my family but I’m at a crossroads and have no idea which way to veer.
P.s- these are all my debts. The wife's name is not associated with any of my debt
Back story- I purchased a foreclosure house right before the bubble collapsed. The house was the cheapest I could find that met my requirements for a few years. The house was completely gutted and had what I thought to be a “slight” basement water problem that I could easily fix myself. Fast forward 9 years and I have a high interest loan basement waterproofing loan totaling $13,000 and multiple credit cards maxed out used for home improvements. I thought not a problem because at the time I was expecting to sell the property for $20,000 profit which would be used to pay the debt. Wrong. The real estate bubble burst and my home is worth approx $10,000 less than whats owed and I'm drowning in debt. Oh yeah, and there is still moisture in the basement from a high water table that's not covered by the warranty as they got rid of “most” of the problem. So a property that's worth $10,000 less than i owe. That's if l can find a buyer that will even touch it with the remaining moisture. I've recently married and now have two very young children and my wife only works part time on minimum wage. She takes care of the kids while im at work and works nights as much as she can. So I take out more credit cards to support us on those months we’re a little short. Now I’m up to $30,000 in unsecured debt and not enough monthly income to pay back the debts as the “introductory rates” begin to vanish.
Sorry for the long story but we’re finally to my question. We’re considering forfeiting the home but are worried about finding a place to live when my credit is shot and my wife doesn’t have the income to sign a lease or mortgage on her own. I need a direction….i need advice. Keep the home and use the money I’m saving from my newly wiped credit card debt to pay down the house enough to sell it? All the while crossing our fingers that someone will still buy the house with the remaining moisture problems? Then there are the issues of trying to rent or buy because of my bankruptcy after we sell. Or do I forfeit the home and try to find a place to live all the while being turned down constantly because of the bankruptcy. Will I be spending the next 4 years of my children’s precious lives living in subpar apartments/rentals in bad areas hating myself for being a bad irresponsible parent while i try to rebuild my credit? I feel this is a no win situation and I worry for my 1yo and 3yo. I’m trying to do the best I can for my family but I’m at a crossroads and have no idea which way to veer.
P.s- these are all my debts. The wife's name is not associated with any of my debt
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