Question about life before filing BK>>

[mesa777]

Since I am current on all my bills... Am I able to rent an apartment first and then file for bankruptcy??? I am able to do this before I file?? I may want to just give up my home as I struggle to make payments each month.. Have tried to sell however owe more than its worth...

Also if I include my home in BK can I be sued later when the lender sells at a loss???? I AM SO CONFUSED!!

[danaf]

yes, you can rent an apartment. better to do so before all this starts hitting the fan.

your house questions, others can answer. i have no idea.

[mesa777]

I am just not going to live in a shack... thats all I would get if I get behind on my bills... I live here in the Phoenix AZ area and you cant even get a decent apartment if you have any problem credit...

I just dont know where all of these people are going to live that are going to be losing their homes in the coming months.. The economy sucks and it sounds like it will get worse...

I am just in a bad situation, I guess everyone on here is...

[nc73]

Since I am current on all my bills... Am I able to rent an apartment first and then file for bankruptcy??? I am able to do this before I file?? I may want to just give up my home as I struggle to make payments each month.. Have tried to sell however owe more than its worth...

Also if I include my home in BK can I be sued later when the lender sells at a loss???? I AM SO CONFUSED!!

No the difference you will owe as unsecured debt, but it can be discharged in BK.

[nc73]

OR you could just live there for free until they actually sell your place which could take from 6months to 2 years. Depends if you can stall long enough but definitely at least 6 months free.

[mesa777]

Right... I would love to live here until forclosure however then would have to live in a box since at the point my credit would be ruined... Cant even get an apartment here, thats nice, with a credit score under 720.. WHAT A JOKE!!

[nc73]

Right... I would love to live here until forclosure however then would have to live in a box since at the point my credit would be ruined... Cant even get an apartment here, thats nice, with a credit score under 720.. WHAT A JOKE!!

You will find something. Not everyone has good credit. Since you are filing you should be watching your money anyways and be frugal. I'm sure the places that require good credit aren't exactly cheap.

[mesa777]

Here in the Phoenix AZ area a really nice 1 bedroom is around $815-875 a month.. However if you have any problem credit issues you cant even live there.. unreal how hard it is to rent after credit problems... thats why I am going to be smart and do all of this before I file bankruptcy........ I am not going to live in a shack...

[nc73]

Here in the Phoenix AZ area a really nice 1 bedroom is around $815-875 a month.. However if you have any problem credit issues you cant even live there.. unreal how hard it is to rent after credit problems... thats why I am going to be smart and do all of this before I file bankruptcy........ I am not going to live in a shack...

Ok just trying to save you some dough. I don't know about you but 6 months of free rent sounds good to me.

[CindyLou]

Mesa,
you can get the apartment with a lower credit score, they will just usually require you to put an additional month's rent down as a deposit. In fact I worked for a company and my job was to assist employees relocating to the Phoenix area. I worked with over 40 apartment complexes. Most of my employees either didn't have any credit or had bad credit. They usually had to put down an additional month or they had to get a co-signer (it was their choice) Sometimes we came across complexes that had those black and white lines, but those lines were usually at the 620 mark, not the 700! So I know the Phoenix market in the last few years and you should be ok.
You will have to get out and and tell them your situation. If you just a call and ask they will tell you the guidelines. But once you ask further, there is usually a way. Its not usually so black and white or everyone would just be homeless.

ITS NOT A 720 CREDIT SCORE WORLD OUT THERE!!!! YOU WILL LEARN THAT.

Before you file BK you think that everyone is living is this perfect little world with a perfect credit score so you try so hard to live up to that. Then you fall and you find out that it just isn't like that. And once you start finding out that life just isn't like that and the whole world just isn't like that you will start to feel much better!! Believe me.

[SinkingFast]

Depending on your mortgage agreement, and other factors, Foreclosure could come fairly quickly after you quit making payments. Like 3 months or so.

http://stopforeclosure.com/Arizona_Foreclosure_Law.htm

Generally speaking, it takes at least a month or 2 before your Creditors will start reporting Lates on your Credit Reports. So you could miss your mortgage payment this month, possibly even next month, and still show a good credit score for renting an apartment.

From what it shows at that website link, if you have a property less than 2.5 acres and is a single family dwelling, you won't be liable for any deficiency. If that is indeed the case, that will allow you time to prep for BK. You won't have to rush to file.

[chpxiii]

Here in Texas you're asked on a rental application if you have filed for bankruptcy in the last 6 months. I had to move from one apartment to another around the time I was going to file. Fortunately for me I was on a month to month lease with the apartment I was leaving. Since you are in a house you won't have to worry about breaking leases.

I timed things such that when I filled out the application to get approved for an apartment it was BEFORE I filed so I could HONESTLY say "NO" to the question, "Have you filed bankruptcy within the last 6 months?" I KNOW my credit was crap. Just a couple of months before I believe it was a 540. I got approved for the apartment even though my move in date was AFTER I filed. Since I was approved and I had left a deposit, all I had to do was go in and pay prorated rent, sign my lease, and move in.

So you may want to see about timing things this way since you do not have to worry about a current lease.

BTW, I *doubt* you'll live in a shack. But honestly speaking, if you're bankrupt, you're bankrupt. It's not the time to be living in the lap of luxury or even "above average" type apartments. THOSE are expensive. An inexpensive apartment doesn't mean it'll be a shack or a ghetto. Just do your research.

As a side note: apps are getting trickier, which is pissing me off. The question has changed to, "Have you EVER filed bankruptcy?" Which is bullshit, IMO, because once a bankruptcy falls off of a person's credit report it should NOT EVER BE considered.

[CindyLou]

if its been long enough to fall off your report and there is no trace then you are legally safe to say "no"

[keepmine]

if its been long enough to fall off your report and there is no trace then you are legally safe to say "no"

If the question is, have you ever filed bk-it does not matter if it is on your report or not. The answer is yes.
Remember, your credit report is not the only place a bk is reported. Lexis/nexus and www.banko.com are 2 data bases that will maintain a public record for years-prehaps forever.

For sure, you don't want to make a false statement to an FDIC insured institution.

http://www4.law.cornell.edu/uscode/html/uscode18/usc_sec_18_00001014----000-.html

[CindyLou]

my answer strictly applied to the apartment application at hand. nothing else.