Where do I start? Need Help!

[isabella19]

This probably is where everyone starts but I am at the point I'm running in circles. My first post so please be patient.

My husband & i have run a small business for 10 years ( no employees) & have done fairly well until Jan of 2008. We are in the construction business & were able to stay afloat until about 6 months ago. Our business has almost completely tanked. In credit debt up to our eyeballs, served summons by cc companies but were hoping things would turn around. Well they havent.
So we have decided to file for Ch 7. I think we have made so little money in the last 6 months that we couldnt do a Ch 13 if we wanted to.
What do you look for in an Attorney? Where do I start? We have a home we are upside down in we can't pay the mortgage any longer.

I'm not sure what to do & my husband is so depressed he cant/wont get out of bed. So I am trying to start this process of bankruptcy going.
Any help on how to get started would be appreciated. We live in Colorado.
Thanks

[formiker]

I would (and did) find an attorney who specializes in bankruptcy (bk). Most offer free consultation. If need be go to several. You have to be comfortable with your choice. Does he/she answer your questions, seem very knowledgable ect. I am just starting my bk ch 13. I know what you and your husband are going through. I am very depressed and worried. I have picked up alot of pointers and opinions here on the forum. Someone posted that bk is a business decision and we should look at it that way. I'm trying to but it isn't easy. You are taking the first step by being here, so now you can take the next and consult an attorney. Best of luck.

[tkharvey]

Try not to worry

To Isabella 19, we, too, are in the housing business (my husband is in new home sales). The past two years have been tough and have left us no other option but to file bankruptcy. We NEVER thought we'd be in this place. I remember my husband was so visibly shaken when we were meeting with our attorney. It was so upsetting. As time as gone by, though, he has become to accept it and realizes that we truly have no other option. It helps to know that others are in the same boat and it certainly doesn't mean we have failed. Everything happens for a reason and know that good will come from this. Good luck to you and your family.

[isabella19]

Thanks for both of your responses. I did call a few attorneys yesterday. I also spoke with a paralegal & I'm meeting with her on Monday. This is so overwhelming & have so many questions. But I took the first step & this forum is a life saver. It makes you feel so "under water" with massive debt & not sure about my home. We have lived here for 10 years & to just walk away is so hard. Our credit has been spotless until about 6 months ago. But we will make it. Its just material things.
The reason I came to this "foreclosure" thread was to ask about our home. If we do a bankruptcy (Ch7), do we foreclose before or after the bk? I guess I will know more after meeting with lawyers next week.

[StartingOver08]

You want to surrender your home in the BK - it will be less of a hit to your credit. And more importantly, it is a simple clean way to completely remove your liability for the debt. You can stay in the home until the foreclosure is complete usually. It is a good question for your attorney - what is the current timeline for a foreclosure. When do you have to move out of the house when you are surrendering.

In our area the stated timeline is 6 months, but because there are so many now it is taking 12 to 18 months to foreclose. So find out how long they are taking in your district now.

Take advantage of the 'free rent' period. The BK stops the foreclosure during the automatic stay period until the lender comes in and either lifts the stay to continue the foreclosure or you are discharged and the foreclosure can be completed.