brokeinmi

[dadof3]

Hi fourm members,
i am a long time lurker, first time poster and i really could use some good advice! my wife and i make a good combine income of 120k and have debts of about 350k for a primary and second home that was being rented to a family member and approx 65k unsecured cc ect, i was working seven days for all most a full year and spouse had xtra income from commissions when after jan 1 the bottom fell out and no more ot for me and the threat of layoff begun to ring for her, we have consulted a few attorneys and have decided to let the new home go back 230k and move back into our former home 55k, there is no equity in either home and we both have autos less that 2.5 yrs old, problem is we both are commuters and gas is running 500mth before bills and payments on both are 1100 mthly and are severly upside down, the questin i have is should we surrender the autos for cheaper notes and less on gas before file or would that harm or intent to file? also we are planning on moving out of new home by end of month back to old home before the credit goes bad, (old home payment 500 mth) new home arm payment (1800) or should we file and stay in new home and give up old home? sorry so confusing , new home is better school district for kids, lower crime and we really are devastated over whats happening, thanks for any advise!

[lrprn]

Hi dadof3 and great to see you out of the shadows!

Hi fourm members,
i am a long time lurker, first time poster and i really could use some good advice! my wife and i make a good combine income of 120k and have debts of about 350k for a primary and second home that was being rented to a family member and approx 65k unsecured cc ect, i was working seven days for all most a full year and spouse had xtra income from commissions when after jan 1 the bottom fell out and no more ot for me and the threat of layoff begun to ring for her, we have consulted a few attorneys and have decided to let the new home go back 230k and move back into our former home 55k, there is no equity in either home and we both have autos less that 2.5 yrs old, problem is we both are commuters and gas is running 500mth before bills and payments on both are 1100 mthly and are severly upside down, the questin i have is should we surrender the autos for cheaper notes and less on gas before file or would that harm or intent to file? also we are planning on moving out of new home by end of month back to old home before the credit goes bad, (old home payment 500 mth) new home arm payment (1800) or should we file and stay in new home and give up old home? sorry so confusing , new home is better school district for kids, lower crime and we really are devastated over whats happening, thanks for any advise!

All of us here feel your pain. The realization that bankruptcy may be your only viable financial option is one of the most difficult things life throws at us.

If you haven't arranged for your free half-hour to hour bankruptcy lawyer consultations in your area yet, it's time to do so. Everyone's situation is unique - with two houses, irregular income, upside down cars, and apparently sufficient gross income to have disposable income left over no matter which house you stay in, you need expert legal advice from someone very familiar with the bankruptcy practices in your area to know what the right thing to do is in your particular situation.

If you haven't already done it, sit down and work up a list of all your assets and their current value, all your secured and unsecured debts, and your average monthly living expenses. This will help the lawyers sort out what's best for you. Please remember that we are here 24/7 and want to help. Keep us posted on what you are up to and if you have more questions, come on down!

[Fedler]

Time to become a non-commuter. Gas isn't going to get cheaper. It's going to get more expensive. Sorry your kids can't have that cute swing set and all that junk you think is way more important than food, shelter, health care and everything else you don't want to pay for.

Suck it up and move closer to work. Filing bankruptcy isn't going to do jack for your transportation costs. You're spending way more than you can afford to.

[SinkingFast]

Ignore Fedler. He's just rude.

About the cars,........... If you go out now and trade cars, and then file, the Trustee and Judge could both see that as fraudulent. You would be taking on new debt while you are contemplating filing BK. That's how it could be interpreted if you were to trade and then file BK within a short period of time. BUT timing is everything. You could trade, wait a while to file, and then file.

Since you're looking at letting your house go back, and you're gonna be moving anyway, you could move closer to work. In a rental situation, you won't have any maint or upkeep expenses to worry with. It could be cheaper to live and that could help you financially.

Just some thoughts for you.

[CAB_44]

Yes SF~
We talked about the same thing on the cars..... with our attorney this week~
she said that since it's been almost 6 months that we traded a car, we should be okay there...we wanted to trade the truck since it was a gas guzzler, but she recommended that we not do that, it would look like fraud.
Time will help us on some other issues as well, we've decided to wait possibly a few more weeks~

[dadof3]

thanks for the replys, my problem is my old home is close to my job and my spouse works 40mi in the opposite direction, (no jobs avail in home city), i have not filed yet because i want to hold out as long as possible, however this month i was going to stop paying tthe larger home note since i will nt be staying here anymore, or should i try to pay it anyway??? i just cant afford the truck anymore becouse of the high note and gas is killing me! so if i try to buy something cheaper you think that would be bad?

[aa06a47]

dadof3,

If you have some time, you might try selling one of the houses prior to fililng. I personally would keep the bigger house if you can swing it. Face it, with your income, you need some large "deductions" such as the large house payment or your going to simply be giving the money to the trustee to pay your unsecured debt. Plus, the larger home will appreciate more in the next 5 years than the 55k house your thinking about moving into.

I think trading your vehical now would be more than justifiable. I would do it prior to filing though, you'll probably get better credit terms! I think the judge and trustee would be idiots if they didn't consider the current gas price situation, it is just smart that you look to economize with the gas situation. The key would be to lower your car payments if possible when you do this. If you go out and buy a luxury car with a larger payment than you currently have, they might look negative on that one.

[dadof3]

thanks, i would stay but my mortgage is an arm and will change in 12\2011 and with a chapter 13 no one will refinance us!, also i am worried if spouse or i lose our job the mortgage note is too much for one to afford, i would love to stay becouse the neighbor hood is better, schools, insurance lower, i am so stressed out about making the right choice, with us both being upside down in our autos the negiative equity will not alllow us to trade down so i also considerd trying to buy smaller auto and letting truck go back? maybe trying to wait six months and then filing, the gas alone before insurance or expensise is 400mth, i have not paid the larger home note yet this month beause i dont know what we should do and moving will be so expensive, sorry so many ???? i just want to do things right and not just make hasty decisons, pls respond!

[lrprn]

i just want to do things right and not just make hasty decisons, pls respond!

Dadof3, have you made those appointments with 3-4 bk lawyers in your area yet? You have a more complex case that could use expert legal advice to make sure you are going to do the right thing. We can offer advice but only a good bk lawyer truly has the expertise to know what's best for you and your family.

Most bk lawyers have free half-hour to hour consultations. Confirm some appointments, take your financial figures (income, assets, living expenses, etc) with you, and put everything out on the table. You'll learn a great deal, I promise, and it won't cost a thing but your time. Check some of the stickies here and at www.lawyer.com for how to find a good bk lawyer. That way when you decide on a course of action, if it's bk, then you are set to go and can retain the lawyer that was the most knowledgeable and you felt the best personal match with. Don't choose the cheapest one!

Good luck and let us know what you find out, ok?

[aa06a47]

thanks, i would stay but my mortgage is an arm and will change in 12\2011 and with a chapter 13 no one will refinance us!, also i am worried if spouse or i lose our job the mortgage note is too much for one to afford, i would love to stay becouse the neighbor hood is better, schools, insurance lower, i am so stressed out about making the right choice, with us both being upside down in our autos the negiative equity will not alllow us to trade down so i also considerd trying to buy smaller auto and letting truck go back? maybe trying to wait six months and then filing, the gas alone before insurance or expensise is 400mth, i have not paid the larger home note yet this month beause i dont know what we should do and moving will be so expensive, sorry so many ???? i just want to do things right and not just make hasty decisons, pls respond!

Make some appointements with a bk attorney who can look at your total situation. You have 4 years until your arm changes. You might be able to refinance it in 3 years and pay off your chapter 13 (that is little fuzzy in the new law if you can still pay it off after 36 months, but my attorney said that didn't change). One thing my attorney did tell me was to keep my house and utilities current and quit paying the unsecured creditors. I don't know if your still paying your credit cards, but I would quit paying them before I quit paying my mortgage. You should speek with an attorney quickly to get the best advice!!!!

[Jman30]

Time to become a non-commuter. Gas isn't going to get cheaper. It's going to get more expensive. Sorry your kids can't have that cute swing set and all that junk you think is way more important than food, shelter, health care and everything else you don't want to pay for.

Suck it up and move closer to work. Filing bankruptcy isn't going to do jack for your transportation costs. You're spending way more than you can afford to.

I know it's best to ignore this person, but it is easy to be a tough guy on an anonymous board. I picture you a very lonely, angry person sitting in front of you computer that is covered in empty twinkie packages and layers of crumbs from little debbie cakes, scratching your behind through your too-short bathrobe, miserable with your lot in life. Your only pleasure is being a jerk-off on message boards.

There you go - my humor for the morning! Can't you all just picture it??

[SinkingFast]

What State do you live in Dad?? Since you're thinking of stopping making house payments, you may have time or you may not.

Foreclosure Laws and proceedures vary State to State. Some States, like Missouri, Foreclosure goes very quick. Your house could be sold in as little as 4 missed payments. New York, however, is a Judicial Foreclosure State where people often have as long as 18 months.

How long you'll have on the mortgage will be one factor in considering what you'll need to do, one way or the other concerning the house.

[SinkingFast]

Well, DUH!! Answered the Question when I saw the title of the Thread!!

Here's a link for you about MI Foreclosure Law:

http://www.realtytrac.com/foreclosur...State=Michigan

Depending on your individual note and circumstances, it could be anywhere from 3 to 14 months.