BK questions

[Faithfullymovin]

Hi.

I am new to this. We have to walk away from our home. We are considering filing bankruptcy as we have alot of unsecured debt (40K) using it to try to keep up. We have an ARM that has adjusted and is scheduled to adjust again in October. My husband's job was being eliminated (he works in the automotive industry). He found a job out of state (GA) and took a pay cut to take this job. I work for a company who has been unable to pay me for the last couple of months. We currently own a home in Michigan but plan on joining him in GA at the end of this month. He is currently receiving temporary houses from his employer but it will end this month. We can not afford to pay rent and pay this high mortgage payment. When we took out this ARM we were told that we could refiance with the same mortgage broker free of charge before it adjusted. But when we tried he informed us that we couldn't because the housing market bottomed out and we owe more on our home that is is worth. We are upside down bad. Our house is now worth
50K to 70K less than what we owe. We bought this house when the market was over inflated in 2003. My husband's job relocated him to Michigan which I think was the worst thing for us.

We are blessed that his current company are paying movers to move us. That is such a relief. We will be in GA living in a nice rented apt August 1st.

Here are some questions. Do I just walk away and mail back the keys? We are planning on filing bankruptcy because of the deficency judgment that could happen when we walk away and the unsecured debt. We are broke and have no savings or 401K. We need to really get a fresh start.

This is the crazy part. My husband's company is shipping over seas for over 3 months. I feel that I need to get the BK process started, but will have to do it while he is gone. I know we need to get the pre-credit counseling before he leaves but he will not be able to go to the 341 meeting for sure.

We are in the process of getting me a Power of Attorney. Will this be enough for me to handle this while he is gone? I would like to get this going as soon as possible and not wait till he gets back.

We have not missed a house payment yet, but will miss our first in August. I just can not afford it. I am scared that if I do not get things going, than it will be too late when he gets back (Nov. 1).

Please help with any advice.

Thanks,

[Faithfullymovin]

Help!

Hi.

I am new to this. We have to walk away from our home. We are considering filing bankruptcy as we have alot of unsecured debt (40K) using it to try to keep up. We have an ARM that has adjusted and is scheduled to adjust again in October. My husband's job was being eliminated (he works in the automotive industry). He found a job out of state (GA) and took a pay cut to take this job. I work for a company who has been unable to pay me for the last couple of months. We currently own a home in Michigan but plan on joining him in GA at the end of this month. He is currently receiving temporary houses from his employer but it will end this month. We can not afford to pay rent and pay this high mortgage payment. When we took out this ARM we were told that we could refiance with the same mortgage broker free of charge before it adjusted. But when we tried he informed us that we couldn't because the housing market bottomed out and we owe more on our home that is is worth. We are upside down bad. Our house is now worth
50K to 70K less than what we owe. We bought this house when the market was over inflated in 2003. My husband's job relocated him to Michigan which I think was the worst thing for us.

We are blessed that his current company are paying movers to move us. That is such a relief. We will be in GA living in a nice rented apt August 1st.

Here are some questions. Do I just walk away and mail back the keys? We are planning on filing bankruptcy because of the deficency judgment that could happen when we walk away and the unsecured debt. We are broke and have no savings or 401K. We need to really get a fresh start.

This is the crazy part. My husband's company is shipping over seas for over 3 months. I feel that I need to get the BK process started, but will have to do it while he is gone. I know we need to get the pre-credit counseling before he leaves but he will not be able to go to the 341 meeting for sure.

We are in the process of getting me a Power of Attorney. Will this be enough for me to handle this while he is gone? I would like to get this going as soon as possible and not wait till he gets back.

We have not missed a house payment yet, but will miss our first in August. I just can not afford it. I am scared that if I do not get things going, than it will be too late when he gets back (Nov. 1).

Please help with any advice.

Thanks,

I posted this yesterday and have gotton no replys. I really need advice.

[PoorGrammyinBK7]

Hi and welcome to the forum. I am certainly no expert as we have just started down this road (filed less than 2 weeks ago).

You are sure not alone as many, if not most of us have faced the problem of being "upside down" on our mortgages. It is not your fault the market has tanked.

Sounds like you probably should file BK but the people who could help you will need more info before they could say whether you should be in a hurry or not.

Your husband being overseas for the 341 may be a problem - you may need to schedule the BK around when he will be in the US - like after November 1? One lady here (Cali) has a husband in the military and she did their BK with power of attorney I think, but not sure if thats just because he is in the military or if it would apply in all job situations.

Then there is the "which state to file in" problem.

Do some searches on this forum and you will find a LOT of info that may help answer some of your questions (or bring up even more)!

There are some very experienced and helpful people here who may offer some advice, but you really need to seek some free consultations from some BK attorneys and get their thoughts.

Sorry I can't be of more help, but wanted to answer you and let you know someone is reading your post!

Stick around - you will hear from others I am sure!

Grammy

[Faithfullymovin]

Grammy:

Thanks so much for the reply. Your kindness made me cry. I am so nervous about all of this, but will just need to get alot of info and take one day at a time.

Thanks again.

[Minnymouth]

Okay,
Your circumstances are very unusual so your bankruptcy is going to be different than most folks.
The fact that your moving to another state is a problem also. You need to file BK in the state of your longest resident (which is Michigan where your home is located.)
Remember if you walk away and leave a home (mail back the keys) you are still the homeowner until the lender forecloses on you. You are responsible for insurance, maintenance etc. till your name comes off the deed or it forecloses.
Laws, exemptions are different from state to state. Even if you use Federal exemptions, some things will be different state to state.
A attorney in Georgia may not be able to handle a bankruptcy with property in Michigan, and if they can, there may be extra expense involved.
Normally the 341 meeting is held in the state in which you have to file (which in your case may be in Michigan)..... so then you have expenses for you/spouse and your attorney to attend the 341.
Whether the Federal Court will accept a POA regarding your spouses absence is unclear. I've read cases of where 341 meetings were postponed till after the parties returned from overseas.

My neighbor filed jointly for bankruptcy while her spouse was overseas. The 341 meeting was put on hold till he returned to the states. The lender on their mortgage was also in a position where they could not foreclose with the spouse being overseas (has something to do with federal laws with spouses overseas) - banks cannot foreclose! I do not that their bankruptcy and foreclosure were not settled for 3 years.

You really need to have a free consultation with a Michigan attorney before you move and see what you need to do and what options are open to you. You may be in a position where its better for only 1 of you to file.

Federal laws and state laws vary way too much when it comes to bankruptcy.

Most here on the forum file in the same state they live in, that's probably one reason you didn't get any response. They don't know what to tell you to do.

Check with a local attorney, let him know the situation about moving and spouse overseas, the 341 etc. and see what your up against.

Your best option may be to file in Georgia under Federal guidelines, AFTER you spouse comes back.....

Please post back and let us know what they told you......

Hope this helps.....

[BK2008]

Hi.

I work for a company who has been unable to pay me for the last couple of months.

If I can ask a personal q?? How is this working out for you??

The reason I ask, is I am kind of in the same boat. It's making life much more stressful! I'm weighing my options right now.

If you feel like answering, PM me if you prefer.

[Frogge]

My situation is Similar but I waited

Hi Faithfully,

We are in a similar situation except we have waited almost a year to let go of the old house. I asked about the residency issue in an earlier thread, as I didn't realize the requirements for which state you file in until I looked on legalconsumer:

http://www.bkforum.com/showthread.php?t=25382

My attorney here in KS is handling a deed-in-lieu attempt for us before we consider any BK options, and he hs not mentioned the fact that we were in TN to be a problem at this point, however I agree with Minnie that this may cost more when we get into this process further.

[justplaintired]

Well not an expert, but if you are just now reaching the point of filing it appears you have a little time to file. You need to meet with some attorneys, problem being in which state. I would be tempted to start in the state you are now.You don't have to hire the first one you meet with, just get some legal advice for free. Explain your situation. They can direct you in the right direction. I would recommend you ask a neighbor or friend to look after the house after you leave. Keep the yard mowed, make sure everything looks like you're living there, otherwise you could end up in more trouble for not maintaining the house. Even end up with trouble from the city for letting the yard become a eyesore. Some neighborhood kid might mow the yard for little or nothing. If you wait to file until you know DH will be back in the country you will have no issue with your 341.

Again my biggest suggestion right now is meet some attorneys. They really can give you the best advice and usually 1st consultations are free.

[Faithfullymovin]

Thanks to all of you that have reply thus far. You have made me feel better and having this forum is a great resource. I will keep you posted on my progress.