What would you do if you were me?

[ooCHAOSoo]

I would appreciate people's opinions on this b/c I don't know what to do.

Right now I have retained a lawyer and plan on filing BK at the end of April. I am going to be 31 next month and my husband will be 32 in April. We don't have kids. We have a dog and 2 cats. All of a sudden this weekend, I have three options now.

1) Stay where I am, in a nice development (1600 sq ft colonial 3 Bed, 3 bath), 1/2 acre lot, convenient to highways and major routes for the remainder of my lease (September) and file BK, my LL will probably put the house on the market in August to see if she can sell it - I have $150 DMI so will be filing Ch 13

2) Break lease, lose security deposit and last month's rent to move to 1200 sq ft ranch (3 bed, 1 bath) in a rural town with 5 acres, long term rental for 5 years (rent-to-own for same rent). Brand new roof, siding, windows, kitchen, bath and septic - I will still have $150 DMI so will be filing Ch 13

3) I moved out of my mom's house when I was 20 b/c we get along when we don't see each other too much. Moving back to her house was never an option b/c there wasn't space for me after I moved out. However, my sister just moved out, so the basement of my mom's house is now open. We'll have a bedroom, living room and bathroom. She won't charge us rent or anything b/c she wants to help us get back on our feet. We'll be able to pay off all of our credit card debt in 3 years if we stay there. The deficiency on our mortgage will take 8 years but we won't have any credit card bills.

[ooCHAOSoo]

I need to add something about work travel. I am a school teacher and therefore need to stay at my current job until the end of June:

1) My commute is 35 minutes
2) My commute would be 37 minutes
3) My commute would be 75 minutes

[chicagoannie]

You mention a landlord in # 1, yet say you can pay off mortgage deficiency in 8 years in #3. Do you own or rent?

[ooCHAOSoo]

I currently rent. We sold our home in September through a short sale. The reason we were contemplating BK was b/c our mortgage company is coming after us for the deficiency and we owe so much credit card debt and are in the hole.

[shark66]

I voted for option # 2...

If I were in your position I'd work very hard on making that $150 DMI surplus disappear...a good attorney can likely make that happen...

Good luck.

[johnjan2009]

Since your mortgage company is running after you for deficiency caused by short sale, I think filing bankruptcy should be your only option and that is option#2. Check fo best attorney you can hire who can work with you on your DMI.

[debee]

If you do opt for #2, I would also ask your landlord if she will just let you out of the lease. If you give her notice, she might list it for sale sooner or find another tenant to cover her losses. If you move back in with Mom, which is cheaper on the wallet but harder on the nerves, you will also end up with more DMI to give to your creditors which is the exact opposite of what you want to do right now. As shark said, you want to take a good long look at your budget because there may be a 'reasonable and necessary' expense that you are overlooking.

[OhioFiler]

You can't live with your mother for three years.

[backtoschool]

Why would you want to double your commute time and live in your mother's basement for 3 years when you have other much better options? A $150 dmi is very close to the threshold of the $70 dmi or so needed for a chapter 7. I would go over all of your expenses and see if maybe you are missing some legitimate expenses such as insurance, licensing, medical expenses (including over the counter medications) etc, that would lower that $150 dmi.

If you post another thread listing your expense schedule people on this board can help you see if you missed something.

[msm859]

Why would you want to double your commute time and live in your mother's basement for 3 years when you have other much better options? A $150 dmi is very close to the threshold of the $70 dmi or so needed for a chapter 7. I would go over all of your expenses and see if maybe you are missing some legitimate expenses such as insurance, licensing, medical expenses (including over the counter medications) etc, that would lower that $150 dmi.

If you post another thread listing your expense schedule people on this board can help you see if you missed something.

I agree. You need whatever it takes to get into a chapter 7.

[chicagoannie]

I vote #2. Search this forum for other people's expense schedules - I'll bet you can find some items you missed. See if you can't get yourself into a Ch 7 instead of the 13.

And staying with your mom if you do not get along is just not an acceptable solution! Take solution #3 completely off the table!

[LadyInTheRed]

All things equal, would you prefer to stay where you are or do you like the idea of moving to the rural location? If you like where you are, have you asked your land lady if she would be willing to convert your lease to a rent to own contract? Perhaps that could even increase your rent a bit.