Don't want to loose house!

[GonnaMakeIT]

Good Evening,

Been lurking here for a couple weeks. So much to consider...

In Idaho. Also in midst of divorce. Income 80K STBX income just started a couple months ago at 18K she has been a stay at home mom the previous 5 years, house first 195K second 57K, payment ~1800/month, unsecured debt 45K. Three cars all paid for.

Fighting for 50/50 custody, but I already know if I win that the CS will put me over the top and can't keep up with the CC debt and formulate a self plan that will pay 100% in under 5 years. Heading most likely for a Ch13.

Divorce attorney said I should consider Ch13. He has a fellow lawyer in his office that does BKs. I am also looking to talk to a couple other lawyers too.

I want to keep the house, possibly sell Camry and Truck before BK to consolidate and buy something in between like a 4Runner. STBX will get van.

There are a lot of other details and concerns but that is what I will pay the attorney to figure out once I retain one. He needs to earn his keep!

I stopped paying CC payments last month because we just don't have it now with legal costs of divorce. Not 30 days late quite yet. Citibank has been calling a lot and I have not spoken with them yet. Amex made a 0% 6 months then 9.9% 6 months offer but I have not accepted that either. The divorce is not amicable though I keep trying to get it to become that way.

My biggest worry is loosing my home. I am not in arrears with it and only may be a few days late at times, but never penalized. It is my dream home. A modest 2400 square foot on 5 acres. I have comps coming from a reliable realtor on Monday. Verbally she said I am most likely upside down or about even now owing ~252K. I know I will need to get a paid appraisal at some point.

Can the bankruptcy court motion me to sell the house to lower my monthly expenses? I don't see how the family court can? There is very little to no equity and the STBX cannot afford it.

Thanks for your thoughts and pardon my ramble!

[lrprn]

Welcome out of lurk mode, GMI - we're glad you found us and the forum info has been helpful to you. I'm so sorry to hear about your pending divorce - that's a very tough thing to handle on top of the financial problems too .

Can the bankruptcy court motion me to sell the house to lower my monthly expenses? I don't see how the family court can? There is very little to no equity and the STBX cannot afford it.

The bk court cannot force you to sell your home. The family court cannot force you to sell your home either. However, you do need to be prepared that when the dust settles, you may not be able to avoid the sale due to the financial arrangements required to get your divorce. Work with your divorce lawyer to sort out what to expect here.

The most important thing you can do for yourself is to sit down and take a cold, emotionless look at what your income vs. expenses are going to look like after the divorce is final. Can you really afford to keep your house? (And we can't tell if you can or not from the limited information you've been able to share here so far.)

Depending on how much the paid-for cars are worth in today's market, they are likely going to be an issue if you file bk because most states have a fairly low limit to what your auto bk exemption can protect. Considering selling them *for market value* before filing removes that problem, but then that opens the Pandora's box of what to do with the cash before you file. (Most states have very little - if any - protection for cash when you file.)

If you haven't set up free initial consultations with 3-4 experienced bk lawyers in your area yet, now's the time. You'll learn a great deal about the possible ups and downs to expect if you do file bankruptcy and get a realistic picture about your financial vs. divorce situation too.

Hang in there. Keep asking questions - we'll help you sort things out as best we can.

[GonnaMakeIT]

lrprn,

Thanks for the reply. Yes, it may be hard to keep the house after the dust settles, but if I let it go, it may be a long time before I can get back on the mortgage board again. I have a secure job with one of the largest privately held companies in the world and we have been the most profitable the last three years in the company's 60 year history. So I hope to stay in this home until I retire and perhaps beyond. I want my children to know the rural lifestyle. It is one of the main reasons I bought the house. So, I would like to try and keep it if I can and get past the 5 years of CH13 payments.

Three cars, truck I owned outright before marriage. Camry and van bought during. The van is worth about 7K and car maybe 4K, truck 5K. These are low ball numbers. I would sell the 2 vehicles that I get out of the divorce and take that cash and by something with it before the BK. It also removes insurance and maintenance costs so more money to work with.

And trying to hold out 6 months with no CC payments will hopefully make a dent in the legal costs of divorce and BK.

Hey it could be worse. I have my health and a very good job in this economic climate and a couple of great kids!

I will see a few BK lawyers very soon. I wonder about the order of the BK and divorce, but at this point it looks like the divorce will be first unless I can convince someone to change that order which surprising is a possibility. Yes, the details of this whole mess would cost you the movie rights!

Thanks.