I don't know where to start?

[marcie26]

I posted here a month or so ago and still trying to talk DH into meeting with an attorney (we are waiting on our daycare provider to give us our statement to file our taxes - I want to use that money to pay an attorney)- anyway, we have been remodeling our house for years and trying to finish up - DH wants to keep the house - I want to give it up - we owe more than it is worth and we pay $850 per month for a crappy house because DH didn't get a fixed rate (he bought it before we were married). So, can a person file and still keep the house? Is there a way to refinance it before we file? For those that have given up their house, how do you get a new place to live if you are filing? No one is going to rent to us, right? I just don't know where to start with all this - I am having anxiety attacks really badly lately I can't even get my work done at work because I am soooo overwhelmed - DH just keeps taking money out of our account that we don't have - we just got an overdraft notice and he just keeps saying "f- it" I don't care anymore.
Should I buy a book before meeting with an attorney? If so, which one? Are their specific books for specific states? I live in Illinois. I think maybe if I find out what is fact/myth about bankruptcy I can talk to DH about it and change his mind - he agrees that we HAVE to file, that we can't live like this, but he just keeps saying he has to finish the house first - we have no money to finish the house and we don't have much credit left - isn't it going to look like we purposely used all that credit to finish our house and then we file?

[marcie26]

Any words of wisdom?

[buchanj]

dh mean dumb husband? Have a meeting with several attorneys free consultations and go with the one that sounds correct. Take the first step, its not that hard.

[HHM]

Can a person file and still keep the house?

YES, but you have to continue to make ontime payments. If you file chapter 7, you need to be current on your payments at the time you file and continue to make the payments during and after your BK is complete

Is there a way to refinance it before we file?

That is just a matter of calling around to banks and brokers and seeing if you can refi. Whether you can refi will depend on your income and credit worthiness. Your ability to refi is unrelated to your intent to file BK.

For those that have given up their house, how do you get a new place to live if you are filing?

NO ONE on this forum has ever been homeless as a result of a BK. Most people, so far, have not had any trouble finding a place to rent. When you surrender a home in BK, it is not as if you have to move out right away. Most people are able to continue to live in their home up to 6+ months (mortgage/rent free) during and after their BK. The bank still has to go through the foreclosure process. I have seen some people stay in their homes up to a year from the date they filed BK.

[marcie26]

dh mean dumb husband? Have a meeting with several attorneys free consultations and go with the one that sounds correct. Take the first step, its not that hard.

Sorry, used to using that abbreviation in another forum - it is supposed to mean Dear Husband, but dumb husband is more accurate - LOL.

[marcie26]

THanks for the info HHM

[southernbelle]

If refinancing is possible, is that viewed as fraudelent if it is done very soon prior to filing BK or since it is a loan on secured property, is it okay?

[HHM]

If refinancing is possible, is that viewed as fraudelent if it is done very soon prior to filing BK or since it is a loan on secured property, is it okay?

Generally no. As you rightly pointed out, it is a secured loan.

[marcie26]

So, my thinking is that it is fraudulent to use our available credit to finish the work on our house ? If so, how long would we wait to file then? I don't want to do anything wrong, but we need to have a roof over our heads (half the house was gutted and cannot be left like that). Also, I might end up being a stay at home mom and wondered in your opinion if I should quit my job prior to filing so that our income is even lower? (is that fraudulent too when I have every intention of quitting eventually anyway?)

[HHM]

Since it sounds like you need "significant and expensive" work done on your home, if you used credit, you would probably have to wait awhile, $4,000 or less, you should wait 6 months, over $4000-$6000, wait about 9 months, anything over $6,000 wait a year. (Note, these time frames are just rules of thumb, there is no law that says if you wait 6 months after charging $4,000 they cannot object to discharge).

One thing you need to ask yourself, even if you do the repairs, is the house really worth saving. Unless you already have significant equity (at least 20%), then you should seriously consider just surrendering the home.

[marcie26]

Since it sounds like you need "significant and expensive" work done on your home, if you used credit, you would probably have to wait awhile, $4,000 or less, you should wait 6 months, over $4000-$6000, wait about 9 months, anything over $6,000 wait a year. (Note, these time frames are just rules of thumb, there is no law that says if you wait 6 months after charging $4,000 they cannot object to discharge).

One thing you need to ask yourself, even if you do the repairs, is the house really worth saving. Unless you already have significant equity (at least 20%), then you should seriously consider just surrendering the home.

Thank you! That is how I need to word it to my husband so that he understands!! I feel totally wrong running up credit to finish the house whether it is wrong or not.