New here ...

[BustedFlat]

Hi,

I just stopped paying my unsecured debts at the end of March, phone calls are coming in - I haven't answered. They total about $350K. I'm unemployed since Feb - collecting $405/wk, but my wife works and earns about $35k/yr. I have equity in my house of about $150k which is currently on the market. I spoke briefly with an attorney a couple of weeks ago. He said I should wait to file until after I get a job or know my situation. I do not want to keep my house, between 1st mortgage, equity line, and taxes it costs me over $5k/mnth. He believes I will be eligible for a Chapter 7.

I have a question about continuing to use credit cards, if I spent $2000 on a store card, will that come back to haunt me in the filing?

How long can I reasonably go before being forced to file?

If I sell and close on the house before I file, Will I be able to use the proceeds for living and still be entitled to my full Federal exemption?

If I stop paying my mortgage and equity line how long does foreclosure take, and do the arrears affect my exemption?

Thanks for any help,
BustedFlat

[keepmine]

If you sell that house before you file, the cash is fair game for the trustee. Unless, you put it into expemt assets. Equity in a home is exempt-cash isn't. Are you sure you understood your lawyer. I'm not aware that NJ exempted that much equity in your home.
If you quit paying the mortgage, the lender will tack on late fees and legal fees and will recoup them along with any arreage.
Foreclosure speed depends on if you live in a judical or, nonjudical foreclosure state.
BTW, how is the home titled-NJ is a tenacy by entiries state. That may be what the lawyer was driving at. Is all this debt joint or, just in your name?
I'd agree with the lawyer-stabilze your situation first. I'd not use those cards at all. With that debt level, expect a lot of scruity from the trustee.