Is it right for me??

[fatjay]

I am 36 own my home and have some debt....

Here is the problem I am Current on my home and all my credit cards but due to cut backs at work...I am wokring less...

I gave my truck back to the bank and broke a lease on a home I rented in the past...

I want to protect my home in case the bank comes after me for the 18k I own them and with the cut backs at work any less money and I will lose it all....

Would bankruptcy be right for me?

Any help would be great

Than you

[LadyInTheRed]

Welcome to the forum.

You will need to provide a lot more information before anyone can give an opinion.

How much unsecured debt do you have?
How much secured debt?
What is your house worth?
How much do you owe on your house? (is $18k the balance of the loan? Any other loan secured by the house?)
How much is your monthly mortgage and credit card payments?
Do you have a vehicle now? If so, how much is it worth?
Do you have any other assets other than basic household necessities?
What is your gross and net income?
Are you married?
How big is your family?

Answers to these questions will help us decide whether WE think BK is right for you and give you our opinions. Utlimately, YOU are the only one who can know what's right. Also, read the stickies in these forums and as many posts as you can. There is a lot of information here. You may be able to decide whether BK is right for you by reading for a couple of hours.

[fatjay]

Welcome to the forum.

You will need to provide a lot more information before anyone can give an opinion.

How much unsecured debt do you have?7k
How much secured debt?home included 200k
What is your house worth?165k
How much do you owe on your house?185k
(is $18k the balance of the loan?that is what i owe the bank yes Any other loan secured by the house?)
How much is your monthly mortgage and credit card payments?1600
Do you have a vehicle now?I have 2 If so, how much is it worth?not what I owe 14k on 1 and 5k on the other
Do you have any other assets other than basic household necessities?no
What is your gross and net income?48k per year and dropping
Are you married?not yet will hold off till this is solved
How big is your family?Myself girlfriend and 3 kids 15 11 8

Answers to these questions will help us decide whether WE think BK is right for you and give you our opinions. Utlimately, YOU are the only one who can know what's right. Also, read the stickies in these forums and as many posts as you can. There is a lot of information here. You may be able to decide whether BK is right for you by reading for a couple of hours.

Thank you for all the help!!!!

[momofthree]

I'm confused. What is the $18k that you owe to the bank? Is that an auto loan? 2nd mortgage? It can't be unsecured since your unsecured debt is only listed at $7k.

I'm not sure that bk is the best option for you with so little unsecured debt...

[fatjay]

I gave my truck back to the bank they sent it to auction and the balance that I owe is 18k they said I have to still pay that.at this point though it is not the bank the bank sold the debt to a collections firm..not sure if that is secure or unsecure debt???

If they take me to court for the money and take it from my check or put it against my home that would cause my house of cards to fall....


I really just want to protect myself my family and my home

[keepmine]

The $18K defeciency balance is unsecured debt and may be disharged in bk.
The question you need to ask yourself is, can you comfortably afford the mortgage on the house and the car payments {all being underwater} on $48K/year and dropping? This is in addition to supporting a family of 5.

Filing bk is the easy part. What comes next is hard. Being able to support yourself post bk. You want to come out of bk in better shape than you entered.
You're wise to put off marriage until you get your finances straightened out.

[fatjay]

My soon to be wife is graduating from school in 2 weeks and will be working so that will take a good deal of weight off the situation..We decided it was better to struggle now and make it better in the long run....

Here's the question then???

Whats the worst thing the debt collector can do to me for the 18k??? that is what I am really worried about and since Im current on all other debt except for the 2k on the broken lease...should I just hold off and see what happens???

[keepmine]

The colledtor could sue you and win and then garnish your wages and levy your bank account.
Putting a lein on your home would depend on if your state allows that or not.

[fatjay]

I know that paying the bill is a way to fix it...dont have the money...what can I do in the mean time to avoid this from happening??

[keepmine]

I know that paying the bill is a way to fix it...dont have the money...what can I do in the mean time to avoid this from happening??

Absolutely nothing.
It's a decision that your creditor will make as to how aggressive they are in pursuing this.

Again, really think this through before you file. Does your wife actually have a job lined up that will allow you 2 to comfortably pay the mortgage and car notes?
If so, go ahead and file. If not-as I said before you want to emerge from bk in better shape than you entered. You don't want to file bk and still live paycheck to paycheck.

[fatjay]

We she is done I will not have to work...YEAH!!!

All kidding aside though...thank you for the help!!!

One last question, does this site offer a way to find an attorney?
Or are there an AZ users here that have a suggestions?

I will also search the forum..

Thank you again to everyone

[blessed]

Search for an attorney on the National Association of Consumer Bk Attorneys' site... http://www.nacba.com/

[fatjay]

Very helpful..thank you....I called one guy here in AZ and he said bring your debt and your check book...that gave me a bad vibe from the start...I know its not free but lets talk first..Ya know



Should I do a check the attorney or is that the purpose of that site???

[LadyInTheRed]

Is the attorney charging for the consult? Most BK attorneys don't charge for an initial consult. Even if the consult is free, if he is going to pressure you to write a check to retain him on the spot, don't do it. Consult with 3 or more attorneys before choosing one. Leave your checkbook at home until you decide who you want to work with.

Since you are still current and you expect your financial situation to improve, you may be able to avoid bankruptcy. Can you pay off your unsecured debt in 3-5 years without BK and still make your house and car payments? That would be a sign that BK is not your best option.

Can you offer small monthly payments towards the car loan and lease and keep the creditors from suing for a while? If you can't do that, you might try telling them that you are having temporary cash flow problems and hope to be able to pay them in the future (estimate when that would be), but that if you are forced to, you will file BK. That may inspire them to give you time, but maybe not. Even without working out something with the creditors, it could be months before they sue, if they sue at all. You could interview some attorneys, decide who you want to use, gather your paperwork and prepare for BK, but wait until you are served with a summons before you file. If your situation improves before that happens, perhaps you can avoid BK.

I think a big part of your decision depends on how certain your fiance's future job prospects are, how much your salary will continue to decrease, and how much she is willing to help you deal with your debt.

(If you decide filing BK is the way you will go, don't make any payments to unsecured creditors. I only suggest small monthly payments to try to avoid BK).

[fatjay]

My worry is the truck payment I owe.......they are the type of collection place that uses massive pressure and very bad words on the phone...this in itself does not scare me just the fact that they are unpredictable in what they might do...