We will be contacting an attorney in the next 3 or 4 months but I am wondering if a Chapter 7 is possible in our situation.
Let me start off by saying that my husband wants us to retire in 8 years (2018) when he reaches 67 and I reach 62. Here are the facts:
Balance on 1st & 2nd mortgage = $235K
(value has dropped from $390K 3 years ago to $164K last week. Published forecast for our area is that we will not rebound to those higher numbers until 2039. We would NOT REAFFIRM. There is no way that we can afford the mortgage payments, insurance (high cost area) and taxes on the house if we retire - our 401K took a huge hit). Would eventually move to different area at retirement.
Personal loans & credit cards: $76K (about 75% of this would be paid off by 2015).
2 cars: 2005 Honda - owe $8K; 2005 Chrysler - own
(would reaffirm the Honda and a newer more economical car we are considering buying to replace Chrysler at least 3 mos before BK if we file)
Husband's employer permanently cut management salaries by 10% this year and raises are now 2 to 2.5% from this point on. Annual combined gross income is now $130K. Was $140 prior year.
We figured we could get some money out of the house or at least break even by retirement but it doesn't seem possible now. We are considering doing this now rather than later to try to help out our retirement situation and boost 401Ks as much as possible.
Right now we are current on everything but an emergency could change that.
I know we got ourselves into this and had a plan out but that's obviously changed now.
Let me start off by saying that my husband wants us to retire in 8 years (2018) when he reaches 67 and I reach 62. Here are the facts:
Balance on 1st & 2nd mortgage = $235K
(value has dropped from $390K 3 years ago to $164K last week. Published forecast for our area is that we will not rebound to those higher numbers until 2039. We would NOT REAFFIRM. There is no way that we can afford the mortgage payments, insurance (high cost area) and taxes on the house if we retire - our 401K took a huge hit). Would eventually move to different area at retirement.
Personal loans & credit cards: $76K (about 75% of this would be paid off by 2015).
2 cars: 2005 Honda - owe $8K; 2005 Chrysler - own
(would reaffirm the Honda and a newer more economical car we are considering buying to replace Chrysler at least 3 mos before BK if we file)
Husband's employer permanently cut management salaries by 10% this year and raises are now 2 to 2.5% from this point on. Annual combined gross income is now $130K. Was $140 prior year.
We figured we could get some money out of the house or at least break even by retirement but it doesn't seem possible now. We are considering doing this now rather than later to try to help out our retirement situation and boost 401Ks as much as possible.
Right now we are current on everything but an emergency could change that.
I know we got ourselves into this and had a plan out but that's obviously changed now.
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