I'm so lost and confused, I would really appreciate some advice on my situation. I'm going to give as many specifics as I can think of to hopefully get the best advice. I'm new to this forum, so hopefully I am not breaking any rules by doing this.
Okay, first things first, I am married, husband and I are in our 40's, kids are out on their own, so it is just the two of us. We used to live in Indiana and moved to Florida in March 2005. We have a home in Indiana that we tried to sell the conventional method for about a year, and finally gave up and agreed to sell on contract in Feb of 2006. Contract was for 2 years, technically it ended in Feb of this year, however, purchaser has failed to get financing and at this point it's looking like they are just going to walk away from the deal and give the house back to us. My husband and I both had pretty good paying jobs until recently. I was laid off in March of 2008 (closing agent at a title insurance company) and have been receiving $275 a week unemployment since then. My husband still has his job, however, it was our plan that he was only going to work there until the contract sale of our house in Indiana was completed, and we were going to take that money and use it to pay our bills while he and I went to school to get our cdl licenses and then we planned to start driving a truck together. He really hates his job and has only stayed there this long because we had a plan. Now, we just don't know what to do. If the guy quits paying us on our house in Indiana, we are not going to have the money to pay all our bills, at least not by my calculations, but I don't know that we would be eligible to file bk if they go by your last six months income.
Here's our financial details:
Husband gross pay $1025/week, mine is now $275/week unemployment since March, before that, it was $720/week. We have been receiving $652 per month from contract purchaser. As for bills, we have the following (and yes, I know it's a long list)
Mortgage on house in Indiana $528 (total owed $67000), HE loan on same house $110/month (balance is $17,900), Mortgage on property in Florida $213/month (balance is $21,000), Car loan $462/month (balance is $23000, KBB value is $20,000), Truck loan is $365/month (balance is $21,000, KBB value is $16,300), Boat loan is $308/month (balance is 23,000, not sure what resale value is, but probably quite a bit less than what is owed), Student Loan $63/month (balance $2700), 9 credit cards with total of $865/month minimum payment (total balance of $43,065), HOA for Florida property $89/month, Electric Bill avg $170/month, Vonage $30/month, Verizon wireless $100/month, Comcast $163/month, Total insurance, boat, car, house, life $400/month, comes out to total monthly bills of $3867. Total net income per month is $4780, however if contract falls through, will drop to $4128 which would only leave us with $65 a week for groceries, clothes, medical, gas, entertainment, etc. We both have money in 401k's and about $3000 in our bank account.
My problem is this, if the guy walks away from our house and quits paying us, we obviously do not have enough to pay the monthly bills and still afford to eat, but if the bk court looks at our past six month income I don't know that we would qualify for bankruptcy?
What would the bankruptcy court say if my husband quit his job for me and him to go to school and start a new career?
Would it be better to just let the house go into foreclosure and pay the rest of the bills?
Like I said before, I just am so confused by all of this. Any help would be much appreciated!
Okay, first things first, I am married, husband and I are in our 40's, kids are out on their own, so it is just the two of us. We used to live in Indiana and moved to Florida in March 2005. We have a home in Indiana that we tried to sell the conventional method for about a year, and finally gave up and agreed to sell on contract in Feb of 2006. Contract was for 2 years, technically it ended in Feb of this year, however, purchaser has failed to get financing and at this point it's looking like they are just going to walk away from the deal and give the house back to us. My husband and I both had pretty good paying jobs until recently. I was laid off in March of 2008 (closing agent at a title insurance company) and have been receiving $275 a week unemployment since then. My husband still has his job, however, it was our plan that he was only going to work there until the contract sale of our house in Indiana was completed, and we were going to take that money and use it to pay our bills while he and I went to school to get our cdl licenses and then we planned to start driving a truck together. He really hates his job and has only stayed there this long because we had a plan. Now, we just don't know what to do. If the guy quits paying us on our house in Indiana, we are not going to have the money to pay all our bills, at least not by my calculations, but I don't know that we would be eligible to file bk if they go by your last six months income.
Here's our financial details:
Husband gross pay $1025/week, mine is now $275/week unemployment since March, before that, it was $720/week. We have been receiving $652 per month from contract purchaser. As for bills, we have the following (and yes, I know it's a long list)
Mortgage on house in Indiana $528 (total owed $67000), HE loan on same house $110/month (balance is $17,900), Mortgage on property in Florida $213/month (balance is $21,000), Car loan $462/month (balance is $23000, KBB value is $20,000), Truck loan is $365/month (balance is $21,000, KBB value is $16,300), Boat loan is $308/month (balance is 23,000, not sure what resale value is, but probably quite a bit less than what is owed), Student Loan $63/month (balance $2700), 9 credit cards with total of $865/month minimum payment (total balance of $43,065), HOA for Florida property $89/month, Electric Bill avg $170/month, Vonage $30/month, Verizon wireless $100/month, Comcast $163/month, Total insurance, boat, car, house, life $400/month, comes out to total monthly bills of $3867. Total net income per month is $4780, however if contract falls through, will drop to $4128 which would only leave us with $65 a week for groceries, clothes, medical, gas, entertainment, etc. We both have money in 401k's and about $3000 in our bank account.
My problem is this, if the guy walks away from our house and quits paying us, we obviously do not have enough to pay the monthly bills and still afford to eat, but if the bk court looks at our past six month income I don't know that we would qualify for bankruptcy?
What would the bankruptcy court say if my husband quit his job for me and him to go to school and start a new career?
Would it be better to just let the house go into foreclosure and pay the rest of the bills?
Like I said before, I just am so confused by all of this. Any help would be much appreciated!
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