I took my first step and met with an attorney today for a free consultation. I have over $130,000 in unsecured credit card debt and mortages totaling $680,000.
During the 20 minute or so meeting:
She said I probably qualify for a Ch 7 but I could do a 13.
She said I should probably let my houses go (I have two) as I am living way above my means to continue the mortgage payments, insurance and taxes.
She said to live rent free as long as possible until its foreclosed on.
She said I must sell assets I have (a vacant lot that I own in SC and a couple of stocks I own.)
She told me to try and trade my car in NOW and try to lease another one. My lease is up in January 09. I don't think I can though with my current credit which now has a charge-off and late mortgage payments. (Honda has already turned me down and so has Capital One).
She said I will have to pay the IRS if I owe. I have to find out how much I owe the IRS (for the 2005 taxes I have yet to file), they are at an accountant's office waiting to be completed.
She said I have to pay back the real estate taxes I paid for my two houses with my credit card for the 2007 tax year --- why? that was almost $10,000!
She said I can only have $5000 worth of stuff in my house. How do I determine how much value my stuff really has? I have 3 kids and they seem to mess up everything I have, but how do I value these items? She said that in my county has been coming to homes and appraising, but my neighbor who just went through a 13 said no one came to appraise hers.
Concerns I have:
I have not made any payments on the empty rental house since Jan 08 and for 2 months on the home I live in. Should I move out now or just stay rent free until the last minute?? Should I attempt to get modifications of the loans to try and keep one?
I have been paying my credit cards and other bills, just not the mortgages. Should I stop paying everything now and start saving? She said YES.
Not being able to get a car when I have to turn in my leased vehicle in January is scary. I need a car to work.
The lawyer did not talk about how much a bankruptcy costs. Is it more because I owe more or have two homes?
Should I try to sell the homes or just let them go to foreclosure? The HELOC on my rental home has already charged off the loan but did not release the lien, so I am not sure if I can even sell this home with the lien not removed.
If I am able to buy a car before the bankruptcy, will I be able to renogotiate the balance and interest rate in a Ch 7 & in a Ch 13 or just a 13? If not, will I be able to get a car after bankruptcy, I have a good car payment history with no repos or late payments. I don't want an outrageous interest rate though to increase the chances of defaulting.
Sorry I wrote a book!
During the 20 minute or so meeting:
She said I probably qualify for a Ch 7 but I could do a 13.
She said I should probably let my houses go (I have two) as I am living way above my means to continue the mortgage payments, insurance and taxes.
She said to live rent free as long as possible until its foreclosed on.
She said I must sell assets I have (a vacant lot that I own in SC and a couple of stocks I own.)
She told me to try and trade my car in NOW and try to lease another one. My lease is up in January 09. I don't think I can though with my current credit which now has a charge-off and late mortgage payments. (Honda has already turned me down and so has Capital One).
She said I will have to pay the IRS if I owe. I have to find out how much I owe the IRS (for the 2005 taxes I have yet to file), they are at an accountant's office waiting to be completed.
She said I have to pay back the real estate taxes I paid for my two houses with my credit card for the 2007 tax year --- why? that was almost $10,000!
She said I can only have $5000 worth of stuff in my house. How do I determine how much value my stuff really has? I have 3 kids and they seem to mess up everything I have, but how do I value these items? She said that in my county has been coming to homes and appraising, but my neighbor who just went through a 13 said no one came to appraise hers.
Concerns I have:
I have not made any payments on the empty rental house since Jan 08 and for 2 months on the home I live in. Should I move out now or just stay rent free until the last minute?? Should I attempt to get modifications of the loans to try and keep one?
I have been paying my credit cards and other bills, just not the mortgages. Should I stop paying everything now and start saving? She said YES.
Not being able to get a car when I have to turn in my leased vehicle in January is scary. I need a car to work.
The lawyer did not talk about how much a bankruptcy costs. Is it more because I owe more or have two homes?
Should I try to sell the homes or just let them go to foreclosure? The HELOC on my rental home has already charged off the loan but did not release the lien, so I am not sure if I can even sell this home with the lien not removed.
If I am able to buy a car before the bankruptcy, will I be able to renogotiate the balance and interest rate in a Ch 7 & in a Ch 13 or just a 13? If not, will I be able to get a car after bankruptcy, I have a good car payment history with no repos or late payments. I don't want an outrageous interest rate though to increase the chances of defaulting.
Sorry I wrote a book!
Converted to asset case 5/26/2008 [X]
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