No bankruptcy if I lose the toys.

[Jacinta]

I don't want to lose the house mainly because I wouldn't find another place to live with 4 dogs. I can make my bills easily if I get that Obama refinance plan but the bank isn't offering it yet. They don't know when they will offer. In the meantime one of the stipulations is to keep your mortgage current.

I have tried to sell the boat but can't because I owe $18k and it won't sell for anywhere near that. Also, I owe $6k on the scoot but it would sell for about $4k. I could make the other bills easily without these.

So the question is do I call the loans for the boat and scoot and ask them to pick them up or do I file bankruptcy? I read on the net that if I voluntarily reposess they can garnish my wages for the difference. That would just make me not be able to pay the mortgage...but it could buy me some time until the refinance thing goes through. If I file bankruptcy will I lose the house? Oh, I am so confused. If I raid what is left of my son's bank account I can make the bills this month, well sort of. I didn't pay my home association fees that were due April 1st. But if I make the bills this month I just extend the pain one more month.

Can anyone give me guidance? Right now I am current on most everything but this month I will be short about $600. I have been struggling since October when I was forced totake a $20k pay cut.

Oh, maybe I should say, I have one credit card that is interest free but is maxed at $17k. Every month I pay $400 on it and then use it for food. I also have Best Buy and an Amex both with interest free financing which I am making payments.

[AngelinaCatHub]

Jacinta: You are in a heap of debt. Don’t steal from you child, get rid of the toys, don’t wait on any ‘Bammy thing, you just may be disappointed, and STOP paying on all cards and purchase your food with cash. (Angelfoodministries.com is what we use). The four dogs? I’m not a dog lover, but I have owned them. They eat as much as an adult. Don’t have an answer on that, except, who is more important, your family, your dogs, your house? Dump everything but what is important. If you give back stuff, yes they will sue you for the residual amount, for sure. You can bet it will be more than what you think those things are worth. You sure are a candidate for bk and if you are fortunate to be working, and they cut you 20K, what do you think the next thing will be? Better to get into line now, than the end of the line in several months. ‘Hub

[Jacinta]

Thanks Hub

So bankruptcy is really my only option and I will lose my house even though I have not missed a single payment?

[floridian]

welcome to the no toys club.... find a lawyer and find out how you really stand... as far as your toys, it dont look promising... been there done that.

[DaisysMom]

You may not lose the house. It will depend on how much equity you have in it. How much do you owe on it and what is it's current worth? Also, what state are you in?

Even if you have equity above what you owe on the property, it may be less than the homestead exemption in your state. So your home would be safe.

I can tell you that this was a big problem for me also. I was scared to death that I would lose my home......but I had the house appraised and did the math and my house will be safe.

D....

[Jacinta]

To Daisysmom

I put 10% down on my house when I bought it two years ago. $29k. I did a second mortgage for the other $29k to get the 20% needed to have no PMI. I live in Florida. I have not been late on either mortgage. Of course home values have gone down a lot. I have no idea how any of this works. What do you think?

[Flamingo]

You've hit the point of no return unless you obtain a job that pays way more than you are making now to cover the debt and your deficits. Once you max out the cards using them to buy groceries, necessities and maybe robbing Peter to pay Paul, you've started what I refer to as the black hole of bankruptcy - you are at the top of the spiral just ready to be sucked right on down when the first month hits that you just cannot make those payments anymore and will be hundreds of dollars short. It's an awful feeling and place to be; the majority of us on here have been there.

You ask for guidance. Stop all payments except for your mortgage and whatever vehicle you need. Monday a.m. pick up the phone and call a few BK attorneys and line up at least two consultatoins with different attorneys. Don't know an attorney to call? Look in your phone book under the "state" sectoin for your State Bar Association. Call them and tell them you believe you have to file BK, don't know where to start and can they recommend a good BK attorney in the area in which you live. Gather together a complete listing of all your debts, monthly payments, paystubs, sources of income, asset listing and your most recent state and federal tax returns. Take them with you to your appointments along with any other documentation they may specifically ask for. You will find out exactly where you stand and what you can and cannot do in the state in which you live.

Best of luck to you...

[Jacinta]

Thank you Flamingo

You are right. I need to find out the details. I feel that I am so close to being ok. In December I get a guaranteed bonus of $6k. I know for sure that my job is not in jeopardy. When I took the paycut it was to go to a more secure position. If only that Obama refi would come through I would be fine!

[PoorGrammyinBK7]

Florida's homestead exemption is unlimited. As long as you can keep paying the payments you should be fine. The question will be whether or not to reaffirm. We did not, but are continuing payments and so far no problems at all.

[Jacinta]

I don't know what re-affirm means but thank you for the hope. I will contact an attorney on Monday. Does anyone know how the attorney gets paid in bankruptcy? Do I have to have money to pay him?

[DaisysMom]

A reaffirment means that you make an agreement with your mortgage holder during the bankruptcy process to keep the home and continue making the payments. You reaffirm the loan.

I have to pay my attorney 1K to file for me...I am getting the money by not paying my credit cards and unsecured loans. I should have him paid off by June or July.

You need to call some BK attorneys in your area and find out which ones give a free consultation. Write down all of your questions and get advice from them. They would be best to to look at your situation and let you know the best direction for you to go.

D....

[Jacinta]

So I guess everyone on here agrees that bankruptcy is my only option. The beginning of my nightmare. Happy Easter everyone. You give me strength knowing that I'm not alone. Thank you for all of the posts.

[DaisysMom]

So I guess everyone on here agrees that bankruptcy is my only option. The beginning of my nightmare. Happy Easter everyone. You give me strength knowing that I'm not alone. Thank you for all of the posts.

I am not saying that BK is the best thing for you. After you get advice from several attorneys, you will have to make that decision. I was the same as you, confused and feeling scared. I looked at all of my options, and found that BK was the only one that would give me the fresh start I longed for. It is the right decision for me and I wish I had realized it alot earlier. I spent thousands of dollars trying to pay my way out of this mess and only got in deeper. BK is now my only option.

You need to explore your options too. We will be here to support you.

D....

[Jacinta]

I am so scared. I am all alone in this and do not want to tell my family. I don't understand the process and all of the downfalls. I'm sure it will be miserable.

Thank you all for your help.

[hamburgervol]

I haven't filed yet but I have no fear in asking for help. It's your constitutional right to ask for bankruptcy(Article 1, Section 8, Clause 4). Bankruptcy is also looked upon very favorably in the Bible (Deuteronomy 15:1-2 & Deuteronomy 15:12-14, Matthew 6:12, Luke 11:4) For many people Bankruptcy has been the smartest and best business decision they ever made. You need to think of this as a business decision. History is littered with people just like you and I. Wouldn't a nice clean fresh start be nice?

As for what people will think, most will not know unless you tell them. Even if they do know, tell them it was purely a business decision you had to make. And you did it to keep a roof over your head and food on your plate.