Well, here's my plan - thoughts?

[ssmdem]

My husband and I discussed everything last night and looks like here's our plan going forward. I want to "buy" (literally) as much time as I can before the credit card companies start calling - not to mention I made a larger purchase at the beginning of this month that I don't want to look suspicious, so for May, maybe a little longer, we'll pay the minimum credit card payments. We are going to miss the next two house payments though (May and June) and then at least try for a modification. I know the chances are slim, but I can't just walk away from this home without at least trying.

My husband has told me to quit the job that's killing me - he's been telling me that for months - but we needed money and I didn't see any other way. He's going to look at getting relocated back locally - shouldn't be a problem - and between those two moves, our income and expenses should line up for a Chapter 7 when we file. He'll keep his 2nd part time job as well - a job that really I do anyway (it's a small bookkeeping job) - but it's actually his on paper. I'm also finishing up my teacher certification, so can sub here or there as well - but no chance of getting a full time job until the fall of 2011, and even then - there's a lot of out-of-work teachers around here, so I've got a lot of competition. (By the way -- does tuition costs count as an allowable expense?)

Based on the salary figures, we couldn't file until late Oct or Nov - and at that point, I've got ONE last payment I made to my mom in December for money I owed her that would be seen as an insider payment - so if we've lasted until November, we may as well hold out so that won't be an issue as well. So, looks like we're looking at January before we file.

If the modification doesn't go through, most likely they would have already moved at that point to foreclose on the house, but we're going to have to more than likely lose it anyway, so guess it doesn't matter in the big scheme of things if it forecloses before bankrutcy or not -- DOES IT???

We'll stop making payments on the credit cards when I feel like we've got enough time to play with to not risk them suing us -- don't want to add that to my plate. Plus my attorney has said once I pay his fee, I can give his name to the creditors, whether we've officially filed yet or not - he'll field the calls. So that will help alot.

Regarding our rental, it's leased through the end of January - the rent pays the mortgage less $150. Our attorney has said just to send them the rent amount, not the extra. That of course was when he thought we were filing soon. But dragging this out a little longer because of the reduced income - how long do you think the bank is going to let us do that? Should I pay the extra for awhile before starting that?

Anything else not sound or look right? I'm open for opinions here. We have ONE more meeting with another attorney on the 13th. I know her and know that she'll be good, so it will be between her and the one we are presently talking to now. I feel confident with both - just honestly seeing which one is less expensive at this point. The first one (hated him) was $700. This one I like is $2000.

Waiting this additional amount of time also gives me a chance to truly see what all of our expenses are too. I've never really kept up with everything - just put it on the credit card. I want to be able to log it all and know where it's all going.

[SMinGA]

On the rental: I don't remember from your other posts if it has a 2nd/heloc or just a first or if its upside down. If there is a 2nd and its upside, paying on the first only will probably be a non-issue. The 2nd would be foolish to foreclose in that situation.

On your mortgage and planning to go 2 months late to try for a modification: I've heard many cases of the mortgage co not willing to talk about help til you're late. I'm now working on an inhouse mod, and while that is being processed Bank of America has put a stop to collection activity. When you talk to them about a mod, you should also be able to find out if it temporarily stops activity for you, also. If the mod doesn't happen, you'd still have time (how much would depend on your state) before you'd be forced out of the house, so would be able to save $ for the move and/or make your final decision about moving into your rental or elsewhere. And if you ran out of time, then filing BK would give you more time.

If at some point one of your creditors starts the process to file a lawsuit, you'd still have some time to get the BK process going. Its not like you'd have to run to your atty to file the next day. 30-60 days most likely, if not more, would be possible. So taking time to put your family in the best possible financial condition before filing seems wise in my opinion.

[ssmdem]

There's a first and a HELOC on the the rental. Worth about $135, $80K on the first, $88K on the HELOC. Both are at the same bank - so I guess in the big scheme of things, it doesn't matter if I just pay extra principal on 1st and ignore the second. Online, it won't let me pay just a partial on the 2nd - so guess I'd have to just mail a check, if they would even take it. I can pay extra principal online with the 1st, but guessing they may can block that once the HELOC becomes late. Should I call them and tell them we are only getting $1000 for rent and just absolutely CAN'T make the additional extra and see what they say - I guess what they want me to do. ???

I hear ya on them not talking to you if you're not late. My husband called them a few months ago, and while they sent him the paperwork, the guy point blank said, "Sir, if you want to stand a chance of getting approved, you're going to have to miss some payments. I know that sounds crazy, but it is what it is." So, we're just going to go that route and see. Again, it still doesn't change the fact that we'd still be upside down on the house and do we want to continue to keep paying into it in that situation. Guess we'll cross that bridge when we come to it.

And if we completely run out of time if the foreclosure happens fast, family lives here - we could stay with them, so we're not out on the street. Plus there are plenty of rentals around here - so not too concerned about not finding something when we get to that point. LOTS of homes for sale too, so thinking once they've been on the market for awhile, they may be willing to rent as well just so someone is making that payment for them. We have 5 in our neighborhood alone that have been for sale for almost a year. Which doesn't bode well for our foreclosure getting out of our name soon - but again, can't worry about that right now.

I think I'm going to wait until July to stop the credit card payments - just because that shows me making 90 days of payments since my last purchase. Also gives me six months before filing - so thinking I can stretch it that far anyway.

Do you happen to know about tuition costs being allowable as an expense? It's for me - not a dependent - finishing up my teacher certification. If they are, we're good with expenses NOW - as it's $535 a month - but if not, we'd have to wait as planned.

[SMinGA]

Not sure about the education expense - that one is probably best left to a local attorney. I'm guessing it could pose a problem though.

[DYLAN150]

Re: making payments on credit cards for 90 days. I don't know what the requirement is but maybe someone will comment on that. I would like to know.

[ssmdem]

Re: making payments on credit cards for 90 days. I don't know what the requirement is but maybe someone will comment on that. I would like to know.

I don't think it's required - just kinda depends on the purchase. They look back at PURCHASES over the past 90 days - of which I will have none because the cards are cut up -- but not necessarily at the payments. I just want to not give the cc company any room to squeal - as that last purchase was the $535 tuition payment, as well as $650 charge a few days prior for my son's orthodontist. If I've paid for 90 days beyond that, I don't think there's much they can object to -- again, most likely me throwing away money - just buying one less thing to worry about, as well as a few extra months of silence from the collectors.

[flyinbroke]

CC companies start calling the day you miss a payment. When I knew the game was over, I bought a disposable, prepaid cell and changed all numbers on all CCs to that one. I put my name and number on VM so they know they have the correct number.

I have had one CA call my house but I think it is because it shows on one credit report. I have a generic VM and never answer unless I know the number.

[ssmdem]

CC companies start calling the day you miss a payment. When I knew the game was over, I bought a disposable, prepaid cell and changed all numbers on all CCs to that one. I put my name and number on VM so they know they have the correct number.

I have had one CA call my house but I think it is because it shows on one credit report. I have a generic VM and never answer unless I know the number.

No one calls our house - they all call our cell phones. If our phone rings, we know it's a solicitor or a wrong number. The only reason we even keep the home phone is because it is required for my husband's job that he have two numbers where they can reach him - as well as for the internet and our alarm system. I plan to just turn the ringer off and respond to them when I feel like it. I guess I do need to put our names on the voice mail though, as we've always just left it with the generic voice mail. I know they'll start calling immediately - hoping we can have the attorney paid by that time so we can just answer and give them his name and number.

[SMinGA]

Saw a comment at another forum today about a "Google voicemail #". Don't know the details but from the sounds of it, its a # that only goes to voicemail. Not a real phone...

Having your name on the message is good, because they can't legally call friends/family except to 'locate' you. If they have already located you, they shouldn't call elsewhere.