confused about BK

[terruss713]

Hello am very new to this. I have one of the rotten luck stories. My husband and I just bought our house. We had been trying for five years to get one as both of us came from relationships which produced very bad credit issues. We moved in December 28, 2005. My husband has a heart condition and surprisingly collapsed on the 5th of January. He is still disabled and Drs have rec ommended we file for Long term disability. Our "former" employer fired both of us and we now have no income. I of course am looking for employment and trying to draw unemployment. However, since former employer fired husband while on medical leave he can't draw unemployment or even look for a job. So I considered BK. The problem is I am afraid I am going to loose my house. I an currently a month 1/2 behind on payments. Is there anyway I can keep my house? I welcome any input. Thank you.

[LostOne0069]

You say your employer "fired" you... did they say it was for cause?

if not, then you should both qualify for unemployment. Don't assume that you don't qualify without actually talking to the unemployment people. As for your husband, if the doctor says he's permanently disabled then you should be talking to Social Security about what benefits he may qualify for. My mother was in a car accident that left her with some pretty nasty back injuries and chronic pain... then a couple of years later she was diagnosed with breast cancer and had both breasts and a bunch of lymph nodes removed... this major surgery caused even more chronic pain and problems due to all the scar tissue and messed up muscles and nerves... She ended up filing with Social security as disabled and was able to start collecting benefits... the money isn't much... only a few hundred a month... but she also gets medical benefits through medicare and that helps quite a bit.

Good luck!

[Minnymouth]

Did you have insurance thru your employer????

I do not believe that they can fire your spouse while he is on medical leave.... thus dropping any insurance he has....
Now they can fire you for not showing up, and they can replace him temp while he's on medical leave and if he CANNOT return to work, then they can permanently replace him.....

If he had insurance, he can go on the Cobra plan after the company retires him.....

What kind of medical benefits did you all have.

And yes, you can probably draw unemployment, both of you.... but you need to apply for it as soon as possible... Also you need to file for a medical card to assist with his medical bills.

Call your mortgage company and talk to them, tell them the situation and see what can be worked out regarding your house payments. Just don't let it go, because they will foreclose on you after 2-3 months of non-payment.

Yes, I lives change drastically after medical issues arise.... can be devestating mentally, emotionally, and financially.

Keep us posted,

[LostOne0069]

I do not believe that they can fire your spouse while he is on medical leave.... thus dropping any insurance he has....
Now they can fire you for not showing up, and they can replace him temp while he's on medical leave and if he CANNOT return to work, then they can permanently replace him.....

This depends on what state they're in and what the laws are in that state. If they're in an "at will" state, then an employer can terminate someone's employment any time he wants to and they don't have to give a reason. They cannot "fire" you which implies that they had a reason to do so... but they can terminate employment any time they want... but they have to be VERY careful of certain people. If the employee is part of a "protected class" meaning a minority or elderly etc. etc. the employer had better be able to prove that they didn't terminate employment BECAUSE they're a minortiy or elderly etc. etc.

People in "at will" states who have their employment terminated without cause do get unemployment benefits.

[no_it_all]

Is there anyway I can keep my house? I welcome any input. Thank you.

Pretty much the only way to keep it is to make the payments. As indicated in some of these posts, you should contact your mortgage holder ASAP and explain what is going on. Do you have any equity in the home that you can tap into? If so, a loan may help you until you get back on your feet. You might have another month or two, but then the wolf will be at the door....Good luck to both of you...Check with your employer about COBRA benefits. You will get the same group rate that the employer gets, but you will most likely have to pay the full nut on it..It can be hundreds and hundreds of dollars a month...

[SinkingFast]

Pretty much the only way to keep it is to make the payments. As indicated in some of these posts, you should contact your mortgage holder ASAP and explain what is going on. Do you have any equity in the home that you can tap into? If so, a loan may help you until you get back on your feet. You might have another month or two, but then the wolf will be at the door....Good luck to both of you...Check with your employer about COBRA benefits. You will get the same group rate that the employer gets, but you will most likely have to pay the full nut on it..It can be hundreds and hundreds of dollars a month...

Don't tap the equity, if you have any, on your house to try to get thru this. If you aren't able to correct the situation, it's just more debt you'll incur and further down the road in time on the process. It's like drawing out a death sentence. You know the inevitable might come. You hope it won't. You appeal and appeal trying to delay it. All the while having a false sense of hope that the situation will change.

Your Hubby needs to apply for Unemployment Benefits. Some States are electronic now, and you can apply on your computer, from home. Hubby will get Unemployment if he meets the State's previous employment criteria, and the Employer does not file an objection.

Also, as suggested, look into applying for Soc Sec disability. That will get Hubby some monthly income and medical benefits. Depending on your State, you may even get some State aid as well. Plus get with your doctors about applying for meds to be supplied direct by the Pharma companies at no cost to you. Many Pharma companies have these programs in place, but the doctors have to refer the patients and there are financial qualifying criteria.

If you want to try to save your house, the only way you can do that is thru a Ch 13 BK plan. That will require you to pay monthly payments into the plan. If you put your house in the plan, you payments will be at the very least, your current house payment plus your arrears.

If you cannot handle the dollar amount per month, on a regular basis, don't even consider filing a Ch 13. Start looking for a cheaper place to live and rent. File Ch 7, let the house go back, and discharge your mortgage balance and all other debts you may have.

You're a month and a half behind already. Depending on the State you live in, you may have a while in the house before Foreclosure, or Foreclosure could be starting soon. Each State has different Foreclosure Laws and proceedures. Some states allow for a relatively quick, non-Judicial Foreclosure thru a "Right to Sell" clause in the Mortgage Instrument. Other States, like New York, are Judicial only and take longer.

You have lots of options to get assistance. It may seem like a daunting task applying for Soc Sec Disability. Don't get discouraged if Hubby gets turned down on the first pass. That happens often. Just keep trying. If your doctors are saying Hubby is disabled, eventually, Soc Sec will grant the Disability. Hubby will be entitled to a small pension and receive medical assistance as well.

Finally, chat with a few BK attnys. Consults are free and you'll get professional opinions about your legal options.