foreclosure and now collection agency calls, what to do?

[lrn]

Hi All,
I have a foreclosure by Suntrust in June 2013, that is the only issue. no credit card or automobile issue.
Suntrust now owns the Florida house, after the auction, no buyer at auction.

value $300,000

this week, collection agency calls.

Wife works as nurse and afraid that bk will look bad, also her wage can be collected.
what is the best option for us now?

her brother's house is not sold, and he is in bk for 5 years now, and he told her horror stories.
Wife really does not go in to bk path.
we are not fully understand about the pro and con of bk either.

regards

[Pjmax]

I don't have experience with foreclosures, but I believe it is going to be difficult for most on here to advise you, because of your total (and rather unique) situation and having 8 mortgages. Des (BKF's most-excellent legal voice) gave you some advice about Chapter 11 vs. 13. I think you need to consult with a few more attorneys.

Having a BK on one's credit report isn't as bad as you would think. You already have a foreclosure, which many think is just as bad as having a BK. I would much rather have a BK on my report, than the embarrassment of having my wages garnished. That's just my opinion, others may feel differently.

[LadyInTheRed]

Yes, you need to consult with some BK attorneys who have experience with both Chap 13 and Chap 11

Wife works as nurse and afraid that bk will look bad, also her wage can be collected.

If the creditor gets a deficiency judgment and garnishes wages, her employer will know about it. The employer may never find out about a BK. If the employer even cares about a BK, they'll care just as much about garnishment. In fact, a garnishment is inconvenient for them, so they may care more than they would about a BK.

her brother's house is not sold, and he is in bk for 5 years now, and he told her horror stories.

Just because her brother has horror stories doesn't mean you will have them too. I'm 3 years into a 5 year BK and I have no horror stories. There are many BKforum members whose only horror stories came before they filed BK.

we are not fully understand about the pro and con of bk either.

Then, besides consulting with some attorneys, keep reading about BK and asking questions. I'll tell you the biggest pro about BK: Regardless of what Chapter you file, when you file BK, you take control of your financial situation and your debt away from the creditors.