High secured. Low unsecured.

[Jacinta]

Me again. Sorryto be so pesty. My cc debt is all interest free and I have/had a plan to pay them off within the interest free period. What is doing me in is the secured debt on items I can not sell for anywhere near what I owe. Will bankruptcy help me? From that test that was online here somewhere it looks like I will have to go Chapter 13.

On here I've been told to only pay what I want to keep. So I should continue on utilities, cell, mortgage, and car? How about home assiciation fees?

Thank you everyone for your help. I will seek an atty this week but some questions I would rather have answered by someone not monetarily connected.

[StartingOver08]

If you are keeping your home, and it sounds like you are wanting to keep it, pay your association dues.

Even if you surrender you are suppose to pay the dues until the time the bank forecloses and puts the property into their name.

If you have a low amount of unsecured and a high amount of secured debt - are you absolutely sure you want to keep your home/vehicles/other secured items? This is your chance to free yourself of debt

[Jacinta]

Thanks for the info on the association fees. I hate them because they cover things I feel my taxes should cover. I will pay them.

I do want to keep the house but since it's not worth what I owe then i will have to think about where I'd live? Can you rent an apartment in bankruptcy? My car is WAY upside down. I owe $18k and its trade is about $8k. It's a 2007 w/ 45,000 miles due to my commute. I guess if I let both the house and car go I could get an apt closer to work....but then my son would have to change high schools.

So Chapt 13 will help with secured debt as well?

[StartingOver08]

Ch 13 helps if you are behind in sec debt, or taxes or anything. Ch 13 is the wage earner plan.

Surrender the car in the BK. If the house is way upside down, surrender the house in the BK. This is your chance for a new start. By the time the bank takes back the house, you would be finished with this year and maybe next year too! (I am still in my house and this month is month 12 - I think I have 60 to 90 days left).

If you are not comfortable staying in your house for free except for utilities and association fees, then yes, getting a lease is possible while in BK. I'm a Realtor, we do it all the time for people.

[Jacinta]

Thank you startingover. That was so helpful. Ya know, I feel so guilty disappointing the people who loaned me all of this money. If I don't pay my mortgage I would be rolling in it. That's over $2k a month!

[StartingOver08]

Really this is your opportunity to get rid of all the old debt! Look at the current value of your home (a Realtor can give you a free estimate with a CMA using sales within the last 90 days). You may be really shocked at how much the value has decreased. If you are upside down by more than ___% (you determine what is best for YOU); then dump the home.

Don't worry about the lender - they get the house back. They get additional funds from mortgage insurance.

You will then get your fresh start! Keep your mortgage payment current until the filing date so you can use that $2000 in your budget. When you file, you are allowed to change your mind on keeping the home - talk to your BK attorney about this strategy so you both can come up with a budget that works for you.

[Jacinta]

Thank you so much! I have just made the appt for tomorrow morning at the atty! Maybe I will sleep one of these nights! I did just pay the mortgage for this month so that is good. Thank you!