Hi !
I've finally made the decision of going down this route of filing chapter 7. Life has been rough the past year. But, I've decided that I need to start off fresh. (hopefully!) I've been trying to stay above water, but I realized I can no longer do that anymore. Here are my debts:
1. Personal Loans x3 - total about 55k - 2 loans are current, 1 loan will be coming up as 30 days late on 12.16.2023
2. CC Debts - total about 35k - been paying minimum, but all are still current
3. Mortgage - $4100 - current - never been late - this used to be our primary, and because I lost my job a year ago, my husband and I (along with our two kids) moved back to live with our mother in law. And we started renting out this house for $3800 a month. The lease will be up Feb 2024. Both of our name are on the mortgage and deed. My husband is on the title for my mother in law house, but he is not responsible for any of the mortgage payment, or any expenses, or even the down payment at the beginning. Even though we move back in with my mother in law, so far, we haven't been paying rent/expenses as she know we are in financial hardship.
4. Two cars - one lease ($580) and one finance ($990) - but they are both under my husband's name - we need both car as we each need a car to drive to work.
5. My husband also has a personal loan in his name - 35k - and he is current on that. ($900 a month)
6. I lost my job back in Dec 2023. That was a rough year for me. Father past away in Aug 2023 due to cancer, and then I was laid off as a mortgage processor in Dec 2023. Went from 125k income to $0. Finally find another job in the mortgage field in Sept 2023, but of course, income took a big cut. I now make 55k annual (not counting any commission as that's not stable income and not guaranteed there will be something every month). My husband is a MTA worker, he currently make 72k annual (not counting overtime, as that is not guaranteed). So currently our annual salary together is about 127k, which is not enough to cover all our debts.
7. current FICO for me is 660 and for my husband is 740
Thus, we have decided to file for chapter 7. But at the beginning, we only thought of filing for myself only, as majority of the debts are in my name. However, after speaking with one of the bankruptcy attorney, he suggest my husband should file as well. BUT, I forgot to mention to him, that my husband name is on title for my mother in law's house. We don't want to jeopardize her house. and I was told, in order to protect our house, we will need to move back in, or else, they will consider that house as an investment/rental and with the equity we have in the house, the trustee will make us sell the house and pay back our creditor.
House Value is about 720-740k
Mtg Balance Owe is about 625k
so we have about at least 95k equity in the house.
Questions:
1. Should my husband file for chapter 7 as well ? Priority is not jeopardizing my mother in law house as his name is on the title.
2. We definitely need to move back into the house to make it our primary in order for us to protect the house and not get sell, correct?
3. Even after we file chapter 7, with the mtg payment, the two cars, and food and utility and everything, things are still going to be VERY tight as we have not consider any of our overtime or commission, but it is a fresh new start right ?
Thank You for reading!!!
I've finally made the decision of going down this route of filing chapter 7. Life has been rough the past year. But, I've decided that I need to start off fresh. (hopefully!) I've been trying to stay above water, but I realized I can no longer do that anymore. Here are my debts:
1. Personal Loans x3 - total about 55k - 2 loans are current, 1 loan will be coming up as 30 days late on 12.16.2023
2. CC Debts - total about 35k - been paying minimum, but all are still current
3. Mortgage - $4100 - current - never been late - this used to be our primary, and because I lost my job a year ago, my husband and I (along with our two kids) moved back to live with our mother in law. And we started renting out this house for $3800 a month. The lease will be up Feb 2024. Both of our name are on the mortgage and deed. My husband is on the title for my mother in law house, but he is not responsible for any of the mortgage payment, or any expenses, or even the down payment at the beginning. Even though we move back in with my mother in law, so far, we haven't been paying rent/expenses as she know we are in financial hardship.
4. Two cars - one lease ($580) and one finance ($990) - but they are both under my husband's name - we need both car as we each need a car to drive to work.
5. My husband also has a personal loan in his name - 35k - and he is current on that. ($900 a month)
6. I lost my job back in Dec 2023. That was a rough year for me. Father past away in Aug 2023 due to cancer, and then I was laid off as a mortgage processor in Dec 2023. Went from 125k income to $0. Finally find another job in the mortgage field in Sept 2023, but of course, income took a big cut. I now make 55k annual (not counting any commission as that's not stable income and not guaranteed there will be something every month). My husband is a MTA worker, he currently make 72k annual (not counting overtime, as that is not guaranteed). So currently our annual salary together is about 127k, which is not enough to cover all our debts.
7. current FICO for me is 660 and for my husband is 740
Thus, we have decided to file for chapter 7. But at the beginning, we only thought of filing for myself only, as majority of the debts are in my name. However, after speaking with one of the bankruptcy attorney, he suggest my husband should file as well. BUT, I forgot to mention to him, that my husband name is on title for my mother in law's house. We don't want to jeopardize her house. and I was told, in order to protect our house, we will need to move back in, or else, they will consider that house as an investment/rental and with the equity we have in the house, the trustee will make us sell the house and pay back our creditor.
House Value is about 720-740k
Mtg Balance Owe is about 625k
so we have about at least 95k equity in the house.
Questions:
1. Should my husband file for chapter 7 as well ? Priority is not jeopardizing my mother in law house as his name is on the title.
2. We definitely need to move back into the house to make it our primary in order for us to protect the house and not get sell, correct?
3. Even after we file chapter 7, with the mtg payment, the two cars, and food and utility and everything, things are still going to be VERY tight as we have not consider any of our overtime or commission, but it is a fresh new start right ?
Thank You for reading!!!