Not paying my bills but saving money

[Panacea]

I'm so confused again. I really need "BK for dummies"!

Since I won't be paying my bills, mortgage, etc, I will be able to put money away for rent when the mortgage company finally forecloses.

1st question, does filing BK make a foreclosure happen faster? If I file tomorrow, BK goes through, and I'm discharged, am I out on the street?

2nd question, if I save money and have it at the 341, will they take it? Should I find a place to rent before the 341? Will the deposit on the rental be a problem at the 341?

I haven't retained my lawyer yet, and now he's on vacation for the weekend. I just have things swirling through my head.

My goal was to save enough to get a rental, which after my credit goes to crap, might require a large deposit. Also, I wanted to stay in the house as long as possible before they finally take it to save more money, but after the filing and 341, will my mortgage company throw me out?

Is this unrealistic? Please use small words, my head hurts from all of this!!

[dumpinmydebt]

1st question, does filing BK make a foreclosure happen faster? If I file tomorrow, BK goes through, and I'm discharged, am I out on the street?

Nope. They would have to have the automatic stay lifted first.

[keepmine]

Bk has little affect on how soon you can be evicted.
They can do nothing about FC after you file unless, they file for relief from stay. Or, they do nothing and once discharged, they may begin FC proceedings. But, they have to follow your state law as to notices and timelines. You'll have months if not a year or more before they actually evict you. Your bk lawyer can help you with the process in your state.

All states allow an exemption for cash or a wildcard exemption. You can also convert assets that may be nonexempt into exempt assets with a little careful planning. Again, your lawyer can tell you the exemptions for cash in your state.

[tcreegan]

Hi Panacea,

1st question, does filing BK make a foreclosure happen faster? If I file tomorrow, BK goes through, and I'm discharged, am I out on the street?

No and no, if anything the BK prolongs foreclosure b/c they can't proceed until they get permission from the court. In todays market, most lenders are in no hurry to foreclose, most folks report months, some 6 months or more

2nd question, if I save money and have it at the 341, will they take it?

Depends on the state are you in and if they have an exemption to cover the case. What state are you in?

Should I find a place to rent before the 341? Will the deposit on the rental be a problem at the 341?

Yes, no This is where your $$ should be, the trustee realizes you need a place to live. First/Last/Sec.Dep.

You seem to be on track, don't worry about getting thrown into the street, the lender still has to follow state rules about giving you notice, giving you time to move out, then finally selling the house. On top of this, they now have BK rules to follow. Live payment-free as long as you can and put your savings toward a new place to live and a new life to live....

Tom in Colo