Help!

[kl030505]

We are getting ready to file a Chapter 7. We retained the attorney in January, it isn't until this month that we will be able to pay the full cost of the attorney fees and file. Initially, we wanted to keep our house, but it is becoming increasingly clear that keeping the house would be the dumbest thing we could do financially. If we move and rent, this time next year I could have $5K in the bank, if we stay, provided NOTHING goes wrong with the house (and that's a big IF) we would still owe $3K in property taxes and there would still be a property tax lien on the house.

The only trouble is that my husband thinks that surrendering the house as part of the bankruptcy means we won't own a home again for 10 years (which, incidentally, is not all that terrible to me, but I digress), that he would lose the job he JUST got because he won't pass the credit check, and that in general, surrendering the house will make the bankruptcy a lot worse on our credit, etc.

I say, if we don't surrender the house, we will be one month behind on the mortgage until May of next year (yes, I've projected that far out) and being 30 days late on the mortgage AFTER filing a Chapter 7 will be more damaging to our credit (which is already in the toilet - we are going on 2 years of non payment with some unsecured creditor) than surrendering the house and starting OVER.

Am I missing something? Someone who has surrendered a home as part of a ch. 7 PLEASE tell me what it is like. How long were you able to stay in the home after your first month of non payment? We are in MA. I haven't paid September's mortgage, I'd like to be able to stay until Dec 30th (that's how long I need to save enough money for deposit and 1st month's rent on an apartment and moving expenses). We will file the bankruptcy in the next 3-4 weeks. Do I have that long?

Any insight is greatly appreciated.

[B12]

If you qualify for the payment, you will be able to get a new mortgage in a lot less than 10 years. Probably within 2-4 years is more likely.

[Bandit]

Am I missing something? Someone who has surrendered a home as part of a ch. 7 PLEASE tell me what it is like. How long were you able to stay in the home after your first month of non payment? We are in MA. I haven't paid September's mortgage, I'd like to be able to stay until Dec 30th (that's how long I need to save enough money for deposit and 1st month's rent on an apartment and moving expenses). We will file the bankruptcy in the next 3-4 weeks. Do I have that long?

Any insight is greatly appreciated.

I am not sure on the actual mortgage part as the foreclosure. Some banks start in 2 months, others in 3 months & some even longer.

There are several other things you will want to look at & I know the mods & members will get you moving in the right direction, so you do everything in the best order & don't make any mistakes.

It seems your biggest concern in this post right now is, How long you will get to stay at your house before they tell you to leave. (?) Your projection of Dec 30 is probably a good caution date, just to make sure but....

.....Here is how I would be looking at it, if it were me, based on the information you have given & different cases I am aware of ....

If you go into a Ch 7 in 3 weeks, you will most likely be able to stay in your home well into 2008. My Grandmother had over 5 months she could have stayed before they would have made her take a new residency. Some people get more time. I am guessing with all the Holidays & you know attorneys & banks do not work much during those times, that alone will give you a good 3 extra weeks. The whole process takes about 3 to 5 months, sometimes longer.

But your BK puts an automatic stay, so all the creditors wont bother you during this time. I never thought of it before, but you could actually look forward to a peaceful Holiday Season because of the extra time that you really need right now. Sounds like a good plan to me.

IN short, you file just before Thanksgiving, wont discharge until sometime into Feb. or March. If there are any other complications it may take a little longer. If it were me, I would Just make sure I get the BK in before the Bank actually forecloses. You will get some calls & notices on that I am sure.

Am I missing something?

I suppose the only thing I don't fully understand is why you have this attorney for so long, yet do not have it all figured out between the two of you for the best plan of action. (?)

that he would lose the job he JUST got because he won't pass the credit check, and that in general, surrendering the house will make the bankruptcy a lot worse on our credit, etc.

You can't blame him for that. If there is a chance of BK making him lose his job, wont that put you into the same mess after BK? Then again, maybe that is a worry for nothing because he already has the job based on what? a credit check?. Does he handle money or something like that? (you don't have to answer if you dont want to) I think only you & he can answer that.


Hang Tough & confident, kl030505. it will be a good fall & winter for you after all.

[poorme]

How Long can depend on a lot of factors, but you can expect the bank to file a motion for relief of stay, meaning the bk judge will allow them to pursue foreclosure while your remaining creditors are held at bay. That's standard for most secured assets, certainly for mortgages.

I filed in October 2005 and was able to work the system to move out in May the following year - 7 months. The bank filed their MLS in Nov. So I simply filed responses with the court to move the hearing dates and actually went to the hearing and asked for another extension, citing an actual medical reason for DW - and the judge told the morgage lawyer they'd have to wait three more weeks! Well, that meant I gained 6 more weeks in the house because the foreclosure auction dates are pre-set and they have to advertise for 4 straight weeks before the sale date.

I'm not suggesting 'frivolous' actions here, but you can use the system, your rights, and certain calendar & court requirements to your best interest - but you have to know the details of how those events typically unfold to gain the most time.

[kl030505]

1) He just got a job with an insurance company. He's doing customer service work, but has to get a securities license and is worried the bk and foreclosure will mean he loses the job. What I don't get is how just doing the bk will allow him to keep the job, but surrendering the house will not. We have both agreed to the bk, so that is a given.

2) Even if he does lose this job, the one he just left will hire him back in a heartbeat, and I have a really good job (2 things we didn't have 2 years ago), and if we surrender the house, we can live on the salary from his old job and mine until he finds something in a different industry. So, even if he loses this job, if we give up the house, we'll still be ok. Not as good as we would be if he could keep his current job, but ok nonetheless.

3) We don't know what we are doing yet because we sort of put everything on hold until I could finish paying the attorney fees. If we were going to keep the house (which until a few months ago we both wanted to do, I had to keep payments on it and the car current and it was hard to squeeze an extra $2K out of the budget for attorney fees and keep up on the mortgage, especially when stuff like the plumbing went crazy, his car broke down, etc. We are FINALLY going to be able to finish the attorney fees and now I'm just really getting ready to figure out what we are going to do.

4) I am worried about banking on staying the house a long time because I know with the current climate, lenders are beginning the forclosure process as early as 45 days late... and I just don't want to be in a position where I have to move in a hurry. I want it to be on my terms, waiting until Dec 30th is just fine in terms of $$ saved and whatnot. The house has some condition problems that are becoming readily apparent to us and we just can't afford to fix them, we need to leave sooner rather than later.

Has anyone survived a ch 7 and surrendering the home? Have you been able to establish a better credit history since then? For whatever reason, my husband is convinced somehow that surrendering the house with a bk is a LOT worse than simply do a ch. 7. Is that right? If so, how much worse exactly?

Thanks so much. I'm so glad I found this place. Thank heaven for google!

[coma]

As far as surrendering the house making the bankruptcylook worese in some way, it shouldn't matter. I'm definitely not an expert, but if it is surrendered in the bankruptcy, it is better than if it is foreclosed upon prior to bankruptcy. I do not feel that he has anything to worry about. If keeping the house puts you in as bad a position after the bankruptcy as in before, then filing would be a waste. You want to be better off after, and hanging onto something you can't afford will not make you better off.

[B12]

Kl,

One of the questions on the application for a securities license is, "have you filed BK....", and if you answer yes, you have to submit a SRR, a disclosure form that sends the applicant up for a review.

I honestly do not know what happens from there. I would call an outside company that has jobs requiring any form of NASDAQ licensing and ask them outright. Hub doesn't have to give his real name.

Even though he is not selling securities, a license is required to discuss any info relating to the product.

IMO, I would venture to guess that his BK will not affect his customer service job. If he were selling products and getting a commission, I would think that would be a different scenario.

Good luck.

[nc73]

Any decent company will check your credit before employment and your position won't matter much. They want someone stable financially

[SinkingFast]

If you're gonna qualify for Ch 7 and want to keep the house,......... You're gonna have to bring the payments current before you file. If you don't, right around time for your 341, your Lender will file a Motion to Lift Stay to begin Foreclosure anyway.

Generally speaking, when you surrender a house in BK, the 2 are viewed as one negative event by prospective Creditors and employers. Your Credit will only take one hit. Filing BK and surrendering the house some time later,......... Not the case. 2 separate events that way.

[kl030505]

Thanks everyone for the information. I actually called the agency that issues the securities licenses and asked point blank if a bk and forclosure could affect your ability to obtain the license as long as he passes the test. The answer, thank goodness, was that you have to REPORT IT, but that it will not prevent you from getting a license. The only thing that will make you ineligible as long as you pass the test is a felony conviction in the past 10 years, which is definitely not a problem.

The company did a credit check prior to hiring, so I guess they decided to hire anyway. He takes the test in 4 weeks. He had an interview for a similar position at a different company 2 months ago and was not hired solely because of our credit, so I know it can matter. But, thankfully this company hired him anyway.

[B12]

Good news. Sometimes it's just better to go right to the horse's mouth.

Tell him good luck on the test. Let us know how he does.