Do you think it our Ch 7 case will get denied?

[jlynnb21]

Our lawyer should be finishing up with our paperwork for our Ch 7 next week. The main reason, actually the only reason, we are filling is so we can walk away from our house. Besides our house ($107,000) the only other debt we have is a van payment (which we want to keep), a line of credit (we owe 2,000 and plan on continuing to pay that too) a Sears card (balance of $1900) and student loans which I know can't be discharged anyway. So basically the only thing we want to discharge is our mortgage and maybe Sears too.

I'm getting worried that somebody might say we dont have enough debt to discharge to file. Do they do that? Plus we arent actually behind on anything yet.

If it does go through is there anyway the forclosure process can be sped up? We already have a new place to live and started moving today.

[newoutlook]

Why are you filing bankruptcy as opposed to just turning in keys to your lender or doing a shortsale?

[jlynnb21]

Because our mortage company won't let us just turn in the keys. I asked and they said no. Cant do a short sale because they house wont sell period, plus they said we would somehow have to pay the difference. We just want to be done with it.

[TEW]

Our lawyer should be finishing up with our paperwork for our Ch 7 next week. The main reason, actually the only reason, we are filling is so we can walk away from our house. Besides our house ($107,000) the only other debt we have is a van payment (which we want to keep), a line of credit (we owe 2,000 and plan on continuing to pay that too) a Sears card (balance of $1900) and student loans which I know can't be discharged anyway. So basically the only thing we want to discharge is our mortgage and maybe Sears too.

I'm getting worried that somebody might say we dont have enough debt to discharge to file. Do they do that? Plus we arent actually behind on anything yet.

If it does go through is there anyway the forclosure process can be sped up? We already have a new place to live and started moving today.

No It doesn't speed it up it will slow it down let them forclose then file. as soon as you file the forclosure will stop until they get relief of stay. Everything except the student loans will be discharged.

[ready2puke]

If your going to file, why are you paying down the 2k line of credit?

Our lawyer should be finishing up with our paperwork for our Ch 7 next week. The main reason, actually the only reason, we are filling is so we can walk away from our house. Besides our house ($107,000) the only other debt we have is a van payment (which we want to keep), a line of credit (we owe 2,000 and plan on continuing to pay that too) a Sears card (balance of $1900) and student loans which I know can't be discharged anyway. So basically the only thing we want to discharge is our mortgage and maybe Sears too.

I'm getting worried that somebody might say we dont have enough debt to discharge to file. Do they do that? Plus we arent actually behind on anything yet.

If it does go through is there anyway the forclosure process can be sped up? We already have a new place to live and started moving today.

All your doing is throwing money away...Keep your money and stop making those payments. Your credit will be shot anyway with the BK so it doesnt matter...

[Never_Again]

I think, if that was all that I had for debts, and unless you were SERIOUSLY upside down on the house, I would avoid filing for now. Is the issue that you are upside down on the house, or is it that you can NOT afford the payments? Do you like where you are living, and going to stay living in that area?

These are all questions that you need to answer for yourself. If the bank is faced with getting a house back, and a bunch of negative equity, they might be more likely to negotiate on the terms of the mortgage. Maybe a lower interest rate? Modified terms?

It is important to remember that this market downturn in real estate is TEMPORARY, and in a year or two (or three), your situation with your house may be completely different, and you might be selling it at a profit.

So, it is important to consider carefully what you should do.

I can't tell you if your bankruptcy will be dismissed or not, but without knowing your income and expense (after a bankruptcy), we can't tell if you will be forced into a Chapter 13 or not. Given your debts, you might be better off working on your own rather than working with a chapter 13.

[floridian]

i had second thoughts about walking away from my home... according to my 2 year old appraisal, i have 18k worth of equity in the place... however, it may be years before it sells in todays local market... the bank offered to lower my rate 2 points and i said no...

the bank screwed me when i refied my home 2 years ago... they approved me for a fixed rate and then at the eleventh hour they made it an ARM, which i had to take or pay them 800 bucks...

if you walk away and dont file bk, im told you will get a healthy 1099 and be dealing with the IRS...my bank has already threatened me with that...


so, even though i might be able to sell my home one day and make some money, im going to walk and try to make a new start in a town that i like... pretty expensive move, wouldnt you say?