is this the right choice - not looking for legal, just thoughts

[blackmopar]

We moved into our third home knowing it was a stretch and realizing the only loan we could get was risky, but without risk......yea whatever.
anyway, housing turned while the interst arm ballooned and went from 2200 per month to 4600 per month and I couldnt find a better loan - looked for a second job, but nothin was available that would help and so then the credit card debt started piling on top. In the mean time baby 2 was on the way.
Ended up short selling the house in March and now in the process of filing chp7 to wipe the $60k worth of Cc debt we have. Currently renting a house. And still haev my job of 11 years - Wife is no longer working to take care of the kids.
Is Bankruptcy my best choice? Realistically how long will it be before I can start looking at purchasing a house again?

Thank you!

[BassBoy]

If you would, could you provide us with a little more info, like the state in which you live, your income, and other debts you may have. It could help us offer advice about what chapter of BK you may be able to file.

With regards to purchasing a home......I believe the short sale (first) and the BK (at a later date) would place you at the 3 year post discharge date for an FHA loan. It could be 2 years post BK, but I'm only aware of this timeframe when the home was surrendered in the BK. You're home is already gone, with a short sale (or whatever term it may be) on your credit, and that may be looked at differently.

[blackmopar]

sure, sorry - btw - my BK attorney already ahs me qualified for 7 - just in general I am really fearing going through with this, as with aIm sure all of you - I was raised to think this didnt happen to good pepole, Im not naive to think this up front any longer, but that gnawing in the pit of my stomach is still there.
but here is my deal:
California
80k/year - wife no longer has income
3 dependents
60k of CC debt (nothing should alarm as fraud = greater than 6months since any card used)
short sale in March (735k house sold for 520k)
Leasing a car for my wife/financing a motorcycle as my commute vehicle


3 things: the length of time to buy a house again, how can I apply for an FHA when Ive owned three houses, and when I turn in our leased vehicle on November, will I be able to get another vehicle for my wife and kids?

thanks again

[JRScott]

Most bk filers can qualify for a FHA backed home loan after 2 years.

[keepmine]

Plus, you will be swamped with offers for auto loans-at high interest rates.
My suggestion is, stop worrying about borrowing more money when you're on the cusp of bk. That'll come. The big thing is, fix the issues that created the bk. You're down to 1 income. You need to draw up a budget heavy on living below your means . Establish a saving account for emergencies and max out your 401K.
You'll find that filing bk is the easiest part of the process.In 90 to 120 days, the deed is done. But, if you haven't fixed the issues that created the bk then, you've accomplished nothing.

[blackmopar]

Keepmine - yes, I completely agree with you, and we have. The most concerning thing for me that should be realized is my wife has the ONLY vehicle that can transport the family (6 year old and newborn). The lease is up in November, they are not going to be part of the BK, and we are current with payments to them - but are we going to have the ability to get another vehicle with a discharge pending?

Aside from that, we are renting right now, and have a budget plan, plus I want a second job once over the filing/trustee meetings

[keepmine]

Once discharged, you'll get plenty of offers for "2nd chance" auto loans. These will be at a high interest rate.
If you've not actually filed yet, you may be better served to buy {finance} a reliable car now and let the leased car go. Just reaffirm the car in your bk.

[Phillymanhere]

I know you're feeling in a touch spot. I'll just encourage you to look at the big picture. If BK is right for you, then you can and will figure out the car situation later on .... we've got many sections on this forum (have you seen the others), and they deal with all of these issues of getting a house after bk, a car, renting a car, dealing with landlords, etc.

In other words, there's a ton of information here. I consider those things really really minor details, though I know it may seem shocking to you. You'll be able to get a car, a house, more credit cards, etc. The big picture is building a serious savings plan for your family, finding a way to increase income and decrease expenses, raising the amount of money you contribute to your retirement plan, coming up with a family budgeting/spending plan and process. And getting practice actually implementing and adhering to a monthly spending plan.

Get those things in line and the rest can take care of themselves.

[blackmopar]

thanks - i know - all makes sense - but an at home wife with a 6 year old and newborn and only transportation is a motorcycle that is 35 miles away with me seems to me the numebr one priority - i'm just trying to determine how best to handle - I like 'keepmine' suggestion of trying to get somethign now, and I will check, but my credit is pretty bad from the short sale, etc. ill check the other spots on the site - thanks again!

[keepmine]

You don't want to get buried in a large car loan with a high interest rate. If you've stopped paying the cc's and, stop paying on the lease you should be able to save more than a $1K pretty fast. Use that as a downpayment for a good $5-7K used car.