Question Bankruptcy after recent foreclosure?

[Kamel407]

Hello All,

I have recently gone through a foreclosure, have another one on the way, and was wondering if I should file bankruptcy to eliminate my debt.

I recently forclosed on an investment home (2 weeks ago)
I have 2 investment homes left in which the first the tenants have been fantastic and are doing well. The second is in the foreclosure process but the tenant know any are paying month to month until I foreclose (which will be at least 6 months.)

My personal home is a family owned home, and not in my name, so I am good there.

My car is $15k upside down ($30k loan)
I have $25k in credit card debt

I am young and single. I plan to stay in my home for a long time, and don't plan on having a family any time soon.

I own my own business which is starting to flourish, and I have prospective private investors.

I am doing alright at this moment, but my car and credit card debt are slowly eating away my savings. Previously my investment homes that were abandoned by previous tenants were eating away my income much quicker, but that has been resolved.

In light of the recent economy, and the fact that I have a forclosure and an upcoming foreclosure, would it be advantageous of me to file for bankruptcy and wipe my debt for a fresh start?

Would Chapter 7 be the way to go?

Should I file now while I have tenants in a prospective foreclosure, or should I wait until after it has foreclosed?

Thanks,

Kamel407

[Bandit]

I don't know the answer for what is best for you to do, but investment homes aren't all they are cracked up to be right now. What if you just have foreclosures and no BK? Some people do that, or will you be stuck with a bunch of penalty bills post foreclosure?

It appears you are concerned with timing and in that respect, be patient & I would not go rushing into a BK until that is your very last resort.

Ch7? You have a lot of secure debt that I am guessing you want to liquidate? Have you sat down with an attorney with these questions? What state are you in?

It sounds like you are having a hard time making the car payment & & CC bills by using savings instead of income?... hmmm..but you would not want too much cash in savings filing a 7 because they can/will take it from you- so keep that in mind.
You should figure out your total income vs. debt per month & see what you have.
Hope that helps a little.

I think that is real cool that you are being honest with your tenants so they know what is up down the road for them.

[Kamel407]

I have an appointment with a bankruptcy attorney on friday.

My income goes right back into my business to keep it running, so I'm trying to minimize my personal expenses.

My biggest concern is actually pre-bk in the fact that I question if I should let my cc and car payments lapse.

I've asked for a temporary payment extensions for 90 days, which would cover the bulk of my monthly payments.

I'm in Florida.

I'm always honest with my tenants, from day 1, I believe in good karma, and have been blessed in that respect.

Hopefully the BK Attorney will be able to guide me on the right path the way my real estate attorney did, and give me better clarity and peace of mind.

Thanks for the response!