Considerking BK

[burnt]

Hi everyone -

I have been considering bankruptcy for some time now. I can't stand the thought of doing so but I'm not sure what our options are at this point. People tell me it is the end of your credit life and buying a home won't be possible for 10 years. I read conflicting reports and thought I would ask some of you who have really gone through this.

We live in Southern California and have a home that we paid 715,000 for. Our first was refinanced and we owe about 660 on it. We have a second that we own about 110 on. We also have about 50k in student loans and about 65 in CC bills. Wifes car is paid for and mine is a lease.

We are not behind on any payment at this point but I fear that is about to change.

For the past two years I have been working on a business deal that does not appear to be panning out. We had been waiting for this to come through but it doesn't appear it will happen and the debt will be too much for my income. Additionally, I'm very concerned about the stability of my job in the current market.

We don't want to move but will if we have to. Looks like we will have to.

I make about 200 a year but with the mortgages, cost of gas, electricity, food, insurance, etc it just isn't enough. I have a 401k but no other significant assets.

Do you think I should go ahead and speak with an attorney? Should I keep all payments up to date for as long as I can? I don't know where to start.

Thank you.

[TEW]

Hi everyone -

I have been considering bankruptcy for some time now. I can't stand the thought of doing so but I'm not sure what our options are at this point. People tell me it is the end of your credit life and buying a home won't be possible for 10 years. I read conflicting reports and thought I would ask some of you who have really gone through this.

We live in Southern California and have a home that we paid 715,000 for. Our first was refinanced and we owe about 660 on it. We have a second that we own about 110 on. We also have about 50k in student loans and about 65 in CC bills. Wifes car is paid for and mine is a lease.

We are not behind on any payment at this point but I fear that is about to change.

For the past two years I have been working on a business deal that does not appear to be panning out. We had been waiting for this to come through but it doesn't appear it will happen and the debt will be too much for my income. Additionally, I'm very concerned about the stability of my job in the current market.

We don't want to move but will if we have to. Looks like we will have to.

I make about 200 a year but with the mortgages, cost of gas, electricity, food, insurance, etc it just isn't enough. I have a 401k but no other significant assets.

Do you think I should go ahead and speak with an attorney? Should I keep all payments up to date for as long as I can? I don't know where to start.

Thank you.

No not at all you can most likely buy a house FHA in 2 years
your credit score is going to tank but it's most likely on it's way anyway. You will get offers for loans to buy cars before you are even discharged.
401K is exempt don't touch it.
I got 3 CC offers today they want in the trash.
Get some free consults from BK attorneys 3 or 4 they will be able to tell you more

[JRScott]

Most likely you are looking at a Chapter 13 Bankruptcy as your income is far to high most likely to qualify for a Chapter 7.

401k's are exempt assets so I would not look at touching it.

Student Loans cannot be discharged in a bankruptcy.

The vehicles could be a problem, how much equity is in your wife's car?

[cupcake]

The only thing I want to add to the previous responses is that, in my opinion, there is no telling how available credit will be to BKers given the current credit crisis. Up until recently, like TEW said, FHA loans were available to people who were discharged through BK but, seeing credit is becoming hard to get even for those with impeccable credit, BKers may have a much more difficult time in the future. I think we can do nothing but sit back and wait to see what happens.

Like I said, just my opinion...

[downwardspiral]

I would consult with credit counseling place. Try the national one, they are non-profit and don't charge you or try to sell you anything. They will basically lay out all your expenses and all your income and tell you what your options are. Bankruptcy might not be needed. If you did file, I agree with previous poster, you'd probably fall into a Chapter 13.
I'd start with the credit counseling place first.

Regarding your credit, it's not the end of the world. You will be able to buy a house, and in much less than 10 years. You will, just like everyone else in the US, have to have a nice down payment and savings. Like cupcake said, with this crisis, it's hard for everone right now.

Good luck