Unemployed-everything I read here says to wait , Financial and Lawyer advise filing

[discouraged]

Here is my situation. Laid off 2 years ago, had 6 month part-time job last year, unemployment since. Stopped making payments in June on everything. House should go into Sheriff's sale November according to the timeline given me by the St. Paul City Foreclosure Prevention Office. They sent me to the financial counselor who said I should do BK. She sent me to a lawyer who says the same thing. I am 2 weeks away from having the money for the lawyer.

The problem is I bought a fixer-upper and have taken out loans to fix it. Here is my current situation.
74,000 1st mortgage BofA
6,000 line of credit with them
24,000 2nd with Chase
20,000 LOC with Community Reinvestment (home remodeling)
2,000 cc
1,600 cc
1,500 cc
1,500 cc
350 bank loc
560 Alarm Co. (I stopped paying them this month)

My recent tax statement lists the house at 85,000 but the market analysis put it closer to 50,000.

If it were not for the 3 large unsecured on the house I would not be filing bk, but have to get rid of them and the upside down house (it was valued at 124,000 when I bought it 6 years ago).

I'm getting the 'nasty' certified letters saying the 2nd and the home loan plan to accelerate.

ADVICE NEEDED as to what to do. Home should foreclose 5 months (May 1011) after Sheriff's sale.

[keepmine]

You file when the time is right for you.
WHat exactly will you accomplish by filing bk right now when you're unemployed and have nothing anyone can take? You still have to support yourself post bk. What happens if you file bk now and 6 months later after discharge you have a serious accident or illness and have $10's of thousands of dollars in medical debt you can't pay and have already played the bk card.
DOn't get scared or bluffed into a premature filing.
Frankly, I'd suggest you pay far more attention to getting some sort of a job and getting a basic safety net under you. Bk will still be an option down the line.

[discouraged]

Thank you, keepmine. I have been frantically looking for a job - any job. I've come way down in salary, applying for jobs that pay 1/2 of what I made, but nothing so far. I'm 57 which could account for some of it, but even 'dummying down' my resume hasn't helped.

I do see what all of you are saying. I am a little worried as my brother has offered for me to live with them in Illinois but I'm worried about leaving the house while it is in my name. He's fairly certain I can find a job there as it is a small college town and they don't normally get the calibre of skills I have (Executive Admin Asst) there.

The good part of all of this is that I am astonished at how little I can live on when not trying to keep up
with the way I lived while working - clothes, etc.

So, the 2nd and home improvement loans can't come after me while on unemployment? I don't mind losing the house - it has been a money pit from day 1.

[keepmine]

Sure, you can get sued if you're unemployed.
Big deal. That debt is unsecured and will be discharged in your bk.
I'd consider taking your bother up on his offer of help.

[discouraged]

I am considering it - and I realize it is a very viable posiiton. I worry about leaving the house. I would still be responsible for its' upkeep wouldn't I? I live in Minnesota and my brother is 600 miles away. I'm thinking to at least wait until the Sheriff's sale and see what happens with that.

I guess I still think I'll find a job. Hard after working for 40 years to not be employed. I applied for another 5 jobs today and still hold out hope that I will find one.

At the very least, unemployment will end November unless they give another extension. I am looking for part-time, lower paying, anything! So it is not for lack of trying.

But, after reading here, I will tell my lawyer that I am going to wait to see what happens until November. Then, if I have still not found anything I can go to Illinois.

[HHM]

It is a CHOICE. There is no right or wrong answer to the "filing while unemployed" question.

Just because nothing can happen to you while unemployed from your creditors, at the same time, if you can pay all your living expenses, why delay your financial recovery by waiting to file. Also, if getting a job would mean you wouldn't qualify for chapter 7, that would be another reason to file Now.

My default position on this, file sooner rather than later. Unless there is a "very specific reason" to wait, then don't. Start your financial recovery sooner rather than later. Also, there are the psychological benefits to BK, why live under the shadow of financial stress when you don't have too. I am willing to bet that people who file BK sooner (when unemployed) get jobs faster because they are able to focus.

[discouraged]

Thank you. That's all I can say. I am in constant anxiety over this and it would be wonderful to be done with it. My feeling is that once the bk is started, with the way I have been living, I could even get a part-time job and survive. In MN, since I am over 55, I can get an apartment that would only take 30% of my salary no matter what I make. And, there were more jobs to apply for this past month so things may be looking up.

Again, thank you.

[keptdigging]

I'm with HHM.
Yes, filing won't solve your income problem. But a time of little or no income gives you an opportunity for a clean Chapter 7 filing. And it might just put a sprint in your step, knowing you've really cut down your income requirements and have at least gotten your debt behind you. I just filed in a similar situation and I know I'm looking forward to that. May not have any income on the horizon, but I'm cutting my monthly expenses by at least 2/3 and that's a start--a job that wouldn't have covered my expenses before would now put savings in the bank.

And someday we'll solve the riddle of how to get this economy moving again.

PLUS, getting stuck in a Chapter 13 is much more problematic at your age than for someone in their 30s. Anything not needed to support yourself needs to be SAVED, something you'd never be able to do in a 13.

[tay666]

Also, there are the psychological benefits to BK, why live under the shadow of financial stress when you don't have too. I am willing to bet that people who file BK sooner (when unemployed) get jobs faster because they are able to focus.

I can attest to the stress factor.
We waited 3 years to file (because we couldn't even afford the lawyer)
The waiting can wear you down. Keeping track of all the different accounts, and the bill collectors attached to them.
Dealing with not answering the phone, screening calls through the answering machine.
Not keeping much in bank accounts, just in case someone gets a judgement and seizes it.
And constantly thinking about all the different scenarios, and how they could play out.

I mean, it wasn't a living nightmare, or anything like that.
But it does wear one down and takes something of a toll after a while.
But if you have a reason to wait, then wait. If you have no prospects for being able to pay all your living requirements in the near future, then wait.
But if you think you have a plan, and can execute it, then pull the trigger, and put all this behind yourself.

[discouraged]

Thanks again - The way I see it, it may be the perfect time. With this website, at least I know I'm not an only out there. That has helped a lot!

I will still have a few months of unemployment to save if I decide to move to Illinois. And it will reduce the stress so very much.

Once I stopped paying the cc's and mortgage, I'm amazed at how quickly I've been able to get the money together for the lawyer, even with some unexpected car work, sewer taxes (wasn't sure if I should pay them but I did) and regular expenses.

It helped a lot that I have a garden so wasn't paying for vegetables and was able to eat well. Also have a lot frozen for winter and that will help.

[tcreegan]

Hi discouraged,

I vote w. the counselor, lawyer, HHM, and others: go ahead and file

I would hate to doubt the St Paul Foreclosure people, but compared to other places, their timeline is extremely fast. (Unless, of course, they are talking about Nov. next year)

Good luck w. everything,

Tom in Colo

[packerfan]

Honestly I don't think it maters personally after almost 3 years of collection calls, lawsuits and judgements I'm anxious to put it behind me even though income wise nothing has really improved..I'm at a point now that I'm ready to just move forward. We waited for several reasons #1 we had a boat we wanted to get sold before we filed we needed the money to survive we lost our home and knew we would need those funds to get us into a rental..#2 we had a business that folded but my husband had some state licencing tied to it...we had to get the licencing transfered to a new corp before any judgements or bk's were filed against us..and of course there was always the hope that things would improve and we could resolve all our issues with out having to go through a bk...we as well lacked the funds to file I met with an attorney in Jan with full intention of putting it all behind us but never could come up with any money...he called us in May and offered to take our case pro bono and was able to get the court fee's waived...we filed July 30th and we have our 341 this Tuesday..Personally I'm anxious to put the nightmare behind us and am hopeful that everything else begins to fall in line...I don't see the point in waiting any longer the sooner its behind us the sooner we can put our lives back in order

[discouraged]

Thank you. Actually, from the 1st missed payment (June) until notification of Sheriff's sale (Nov.) is 6 months - then the Sheriff's sale would be December, then there is a 6 month redemption period.

"Homeowner retains right to occupy house and payoff entire Sheriff Sale amount, including fees. Must pay amount or vacate house by end of redemption period or face eviction."

So it is actually a year from the 1st missed payment that I would have to vacate. Of course the disclaimer at the bottom states - Note: This document represents average timeframes and will vary by lender. Information is not presented as legal advice.

But, she said it is the norm. Especially in these times when there are so many foreclosures happening and unemployment is at an all-time high. She was very nice about everything and explained it fully. They even gave me extra time to see the financial counselor, which they are paying for, while I thought things over.

I was just in time too, because the funding for counselors is ending, unless the city comes up with more funding. They will pay for mine as I signed up before the notice, but unless they get more funding, that portion is ending.

It is bad everywhere.

[discouraged]

Well-the temporary position came through and I start Monday. It's only 2 1/2 months and 12 an hour (Yikes - after almost 19 an hour) but will certainly help. I'll be contacting my lawyer but think it would be best to wait and file until after the position ends as I still don't have all his monies and would not jeopardize the position by taking time off for court. It's with the city and I know they only have so much funding so it won't go on but may lead to something else down the road and at least let's me breathe for a moment!
********
Well, I just spoke to the paralegal and she said it would take 6-8 weeks for them to get everything processed so I will be going ahead with this the 1st part of October. They are open Saturdays so can drop everything off once I have the monies. She also said not to put too much faith in the timeline, they could serve me with the Sheriff's sale at any time. So I am going ahead with it! Just wish I had the money this week, but won't.

Even if I am still working (doubtful) the court is a block from where I'll be working so would not create a problem to go there.

[tcreegan]

Hello again discouraged,

Actually, from the 1st missed payment (June) until notification of Sheriff's sale (Nov.) is 6 months - then the Sheriff's sale would be December, then there is a 6 month redemption period. This sounds more like it: 3 months before the Notice of Default, 1 month response time, 1 month public noticing time, schedule Sheriff sale, 6 months redemption period, at least a year. If the lender buys the property back at the Sheriffs sale (very common these days) they now have all the time in the world and having you taking care of the place is better than leaving it vacant....... AND....you could ask them for a 'cash for keys' program where they give you some $$ and you have the place ready for market by X date.

Good luck w/ the 'job' at least it is better than nothing.....

Tom in Colo