Want to file myself, a bit about me

[manchoo100]

Well, I'm seriously considering filing myself. About about me:

Married with kids
Paying on a home (purchased for $105K, current value -- ~85k)
Paying on a car (purchased about a month ago -- value ~5K)
No 401K
No Savings
Don't own anything of value

Most of my debt is:
Medical ~ 5-10k
Some credit card debt ~2k at most
Misc. debt (video stores, mail order junk) ~1k at most

My main reason for wanting to file is to get rid of the house (They started forclosure proceedings, I did a loan modification that I've defaulted on now, and I don't want to be there anymore). Want a clean break from the house.

My secondary reason for wanting to file is to stop a ~2k wage deduction for some unpaid medical bills. It will go into affect on my next pay period (8-26).

So in summary, I want to file chapter 7, and make a clean break from everything except for the car I'm paying on. I feel like I've been fighting an uphill battle with my credit for more than 10 years now, and just want a chance to start over.

I've purchased the "How to File for Chapter 7..." book. It looks like things should be pretty straight-forward. Advice? Suggestions?

Thanks!

[justbroke]

Have you tried some free phone consultations with some attorneys? if you're married with children, they can only garnish your wages so much (especially if you're head of household). I say this because pulling the Chapter 7 trigger on $2K is not really a good idea.

I will also mention that depending on your State, any deficiency created by the foreclosure may not even be actionable by the bank... meaning that it's non-recourse. That means, you don't pay any deficiency so the foreclosure would just close out the loan and you'd owe nothing.

You said absolutely nothing about your income, which will be an important aspect. Also, depending on your District, surrendering your home may cause you to NOT be able to use that as an expense deduction on Schedule J. This could cause a "totality of circumstances" objection to discharge by the United States Trustee (UST). That means... no Chapter 7 discharge.

If all this sounds confusing, then you're not prepared to file. Help us help you some more. Let us know what State you reside in and what your income is (or at least let us know if you're over/under median). Also, let us know if your home mortgage (loan) was a purchase money loan.

I still recommend a few phone consultations. If you're doing this Bankruptcy just to delay foreclosure, I really don't advocate filing Chapter 7. It could put you in worse shape if it's not done correctly.

[manchoo100]

Have you tried some free phone consultations with some attorneys? if you're married with children, they can only garnish your wages so much (especially if you're head of household). I say this because pulling the Chapter 7 trigger on $2K is not really a good idea.

I will also mention that depending on your State, any deficiency created by the foreclosure may not even be actionable by the bank... meaning that it's non-recourse. That means, you don't pay any deficiency so the foreclosure would just close out the loan and you'd owe nothing.

You said absolutely nothing about your income, which will be an important aspect. Also, depending on your District, surrendering your home may cause you to NOT be able to use that as an expense deduction on Schedule J. This could cause a "totality of circumstances" objection to discharge by the United States Trustee (UST). That means... no Chapter 7 discharge.

If all this sounds confusing, then you're not prepared to file. Help us help you some more. Let us know what State you reside in and what your income is (or at least let us know if you're over/under median). Also, let us know if your home mortgage (loan) was a purchase money loan.

I still recommend a few phone consultations. If you're doing this Bankruptcy just to delay foreclosure, I really don't advocate filing Chapter 7. It could put you in worse shape if it's not done correctly.

I live in the State of Illinois. Income is ~50k a year. My income contributes most of it -- ~45k or so. Wife works very minimally if at all (part time stuff here and there).

[justbroke]

Yeah, Illinois is a recourse State.

[ryan]

Have you looked into a Deed In Lieu? if the mortgage lender would agree AND would agree to not come after you for a deficiency, you would be free of house and fears of deficiency, both.
The rest of your debt, relatively speaking, is small. Seems a shame to use the BK card for such amounts. Agree with JustBroke, try getting more counseling and don't pull the trigger too soon.

[momwins]

I am looking at doing a 13 to 7 conversion

Have you tried some free phone consultations with some attorneys? if you're married with children, they can only garnish your wages so much (especially if you're head of household). I say this because pulling the Chapter 7 trigger on $2K is not really a good idea.

I will also mention that depending on your State, any deficiency created by the foreclosure may not even be actionable by the bank... meaning that it's non-recourse. That means, you don't pay any deficiency so the foreclosure would just close out the loan and you'd owe nothing.

You said absolutely nothing about your income, which will be an important aspect. Also, depending on your District, surrendering your home may cause you to NOT be able to use that as an expense deduction on Schedule J. This could cause a "totality of circumstances" objection to discharge by the United States Trustee (UST). That means... no Chapter 7 discharge.

If all this sounds confusing, then you're not prepared to file. Help us help you some more. Let us know what State you reside in and what your income is (or at least let us know if you're over/under median). Also, let us know if your home mortgage (loan) was a purchase money loan.

I still recommend a few phone consultations. If you're doing this Bankruptcy just to delay foreclosure, I really don't advocate filing Chapter 7. It could put you in worse shape if it's not done correctly.

--------------------------------------------------------------------------
I did the Pro Se thing and this is my third chapter 13 filing...and Chase had said they would renegotiate my loand after filing number one...and it took them six months to respond, while they told me not to make any payments on the mortgage...now this house in Washington state is aproximately 53,000.00 behind....and Chase had not provided me with an interest statement in two years...(I suspect they wrote the house off already, and their insurer paid on it--because they exceeded the rule about collecting money on a home/ or foreclosing beyond a 6 months delay on payments)....

I fell behind in my payments because i became discouraged as the Trustee wanted to go from 1450.00 to 2070.00 monthly in payments on the house for five years.... meanwhile I am on a small disability income less than a grand....and surviving on school loans--which i used to pay for living expenses--by applying to the mortgage....fot to live somewhere any way....

I hired an attorney two days ago, but he is struggling with some of this stuff..he is bright but afraid to ask for a modification...or advising against it...the pay off on the house would be 189000.00 if it were in great condition it would be worth 175000 (maybe--but none are selling in my neighborhood)..also, due to water damage...sheet rock was cut...and one bathroom is needing toilet reinstalled and sink/vanity...so if an apraiser cam by now it would likely apraise at 130000.00 (maybe)....I would like a loan modification away from this 2/38 year loan that can go up to 16 percent its an arm with a current rate of 9.98 percent....I experienced a bate and switch by the mortgage broker too...r