Foreclosure is coming quick. I need to make a decision...

[mgmtrnr]

New forum user here...be gentle!!

I am trying to work out my foreclosure through the VA but I don't know if that is going to work. The problem is I was self-employed with hardly any income and that business went under. I cannot find a job so my only other option was to open another business on my own to try to generate income.

If the VA doesn't work out, I am going to either file Chap 7 or Chap 13 to keep my house. I have zero in credit card debt but owe my parents about $75,000 from the failed business venture. My car is paid off also so no monthly payment there.

Can I file Chap 13 without any "reportable income"?

I already have signed contracts for my new business so could I file either Chap 7 or 13 to keep my house and then withdraw it in a few months if I am able to pay the mortgage payment each month and also pay off the reinstatement?

Thanks for any advice you can provide.

[allavdj]

If you owe your parents I would just tell them straight up what your options are:

A) I can stop paying you guys for a while and get back on my feet.

or

B) I can file BK and wipe out the debt and not pay you at all.

Seriously, if your only debt is to your parents (aside from the house), you need to talk to them first, explain to them that at this point it's business not personal or family. Tell them you are about to have to spend another $2,000 - $3,000 for a lawyer to handle the BK and that they are the only creditor. If they aren't willing to help you out for a couple months...I dunno what to tell ya besides maybe they'll wish they hadn't left their kid out in the rain when they need somebody to take them to the doctor, or visit them in hospice.

Business with family can always get messy, I know

[AngelinaCatHub]

If you owe your parents I would just tell them straight up what your options are:

A) I can stop paying you guys for a while and get back on my feet.

or

B) I can file BK and wipe out the debt and not pay you at all.

Seriously, if your only debt is to your parents (aside from the house), you need to talk to them first, explain to them that at this point it's business not personal or family. Tell them you are about to have to spend another $2,000 - $3,000 for a lawyer to handle the BK and that they are the only creditor. If they aren't willing to help you out for a couple months...I dunno what to tell ya besides maybe they'll wish they hadn't left their kid out in the rain when they need somebody to take them to the doctor, or visit them in hospice.

Business with family can always get messy, I know

[mgmtrnr]

I don't have any problems with the money I owe my parents. They know I will pay them back when I can. I just included that because it is really my only debt besides my house.

I am more interested in what is the best way for me to keep my house...Chapter 7 or Chapter 13. From what I understand, my house would qualify under the "exemption" rule because there is not a lot of equity in the house.

I was just reading The Tactical Bankruptcy from one of the sticky notes above and got some good info from it but still would like others input.

By the way...I live in NC if anyone from here has any good advice.

[AngelinaCatHub]

Mgmtrnr: You really don’t sound like you are able to make either 7 or 13, to me. Do you have some income? You will have to list your debt to your parents. I would go online and try some of the means tests. What is your house payment? Could you negotiate a refi? Get a lower longer payment? Any hint of bk will screw your credit and right now you are in better shape than I after my 7 discharge. Wish you well. ‘Hub

[hopeforus]

I don't honestly think it sounds like bk is your best option if your only debt is your house and your parents. Esp since you want to keep your house. I would just tell them you can't pay them and tell them those options like someone else mentioned. I really think there are other options for you to keep your house at this point esp since that is all your really owe on . (other than parents)

[JRScott]

Without a means of income I doubt you could save the house in bankruptcy. To keep it in a chapter 7 you would have to be current. You can roll late payments into a 13 but you have no means it sounds like to make those payments.

[mgmtrnr]

Thanks for your replies and advice.

I read a post on here last night from a lady who was dealing with Chase. She said they had some new foreclosure options. I have my mortgage through Chase also and have left the lady a PM because she had posted she had some contact information. Hopefully, she will get back to me. Either way, I will try to work it out with Chase and the VA. My mortgage payment is around $950 and my reinstatement is about $11,000.

Currently, I am unemployed but have started another business but that really doesn't help because, on paper, I still look unemployed until some money starts coming in. I have some signed contracts and the business looks promising (I know, all new business do) but with the economy and the job outlook...right now, this business is my only option even though I am looking for full time employment with benefits so I do have my resume out there.

Thanks again.

[Banko]

I had a VA loan....We relocated due to my job and thought we could get by while waiting for the house to sell. We were fine for 6 months. I called the VA 3 months before we would have problems and tried to talk to them and work something out. They said there is nothing they can do and I would have to talke to the bank my mortgage was with. (they did mention a short sale though) I called Home Federal where my mortgage was right after talking to the VA. Of course there was nothing they could do either!! So the 3 months went by and we talked with a lawyer and filed ch. 7 and included the house. If we could have worked something out I probably could have gotten by. Now you hear more places starting to work with you....a little late for me though..We were discharged on 10/20! Hope it goes better for you!!