Pre-foreclosure/FICO in the toilet - should I default on sky-high credit cards too?

[cityish]

When I realized I couldn't afford my house anymore, I moved into an apartment quickly because I knew my credit was about to take a big hit.

I'm now four months past due on the mortgage and HELOC and am in pre-foreclosure.

Meanwhile I'm barely making ends meet in my new apartment due to the crazy amount of credit card debt I am carrying (which was racked up on house expenses while I was still living in the house.) I am paying them all on time but it's getting harder what with the cost of gas and groceries going up.

I can't do a deed-in-lieu because my mortgage is with Chase and the HELOC is with Countrywide and they won't agree to it. The house is for sale at a bargain basement price, but this is in Orlando and no one is buying.

I can't file Chapter 7 because I actually filed a Chapter 7 six years ago --- and you can only file once every seven years.

Every month when I pay my credit cards, I feel like I'm throwing money away. What good is it doing? My FICO is already trashed. It went from 700 in January to 546 this month. I have no assets other than an 8 year old Honda.

What would the ramifications be if I just default on my credit cards?

I talked with several Chapter 13 bankruptcy attorneys and I can't even afford the fees to file.

It's cheaper to file for Chapter 7. Do you think I could default on my credit cards and then next year, when I hit the 7-year mark since I filed my first Chapter 7 -- just file Chapter 7 again so that the credit card companies can't sue me and hound me for the rest of my life?

I know all of this sounds awful but I am a single person and most of my family has passed away and I don't have anyone to help me.

[jerzey]

6 year and how many months ago?

I would do everything i could with the mortgage's to drag out the sale date to your 7 year mark then file a 7

It took Countrywide 6 months to file a sale date on my house

IMO see a Chap 7 lawyer

[sharksfan]

6 year and how many months ago?

That is the key. If it were me, I'd be filing a 7 at 7 years 1 day.

[keepmine]

It's 8 years between Chapter 7 filings per bk reform.

[cityish]

It's been six years exactly, as of this month.

So in other words, in June of 2009, when I hit the seven year mark, I can't re-file for Chapter 7? I'd have to wait eight years until June of 2010????

[keepmine]

It's been six years exactly, as of this month.

So in other words, in June of 2009, when I hit the seven year mark, I can't re-file for Chapter 7? I'd have to wait eight years until June of 2010????

Yep, it's 8 years between Chapter 7 filings. In fact, it was never 7 years between filings. Prior to bk reform, it was 6 years between Chapter 7 filings.

[cityish]

Holy cr@p!

Thanks for the info!

[whipster]

One idea may be to file a 13 then convert it when you hit the 8 year mark.