At the end of the rope

[Failure]

I am in a situation that I dont know what to do. I am wondering if bankruptcy is my only option. I have a couple questions and hope to get some light on this matter.
I currently have 8 credit cards with a total balance of 50K. Four of these eight cards have hired lawyers cause I have not made any payments since April on these. I did not make payments cause I was in a debt settlement company called Achieve Financial. I was with them for 4 months giving them $1600 in total. After I quit Achieve, I was refunded only $800. Since then I have placed all 8 cards in a counsiling program with Green Path paying $800 a month to them. Couple problems, the original four cards I had with Achieve Financial are not excepting Green Paths proposals of credit counsiling. Even with out them accepting the proposals, Green Path is still sending the four cards a payment of around $100 each per month. I am starting to get calls from lawyers wanting to collect. What should I do?
Other question, Last year I refinanced my mortgage to a 115% above value to payoff some other debt. Now I have a 175K mortgage on a home that is valued at 160K. My mortgage is $1400 a month. I take home $2900 a month with my job. As you can tell I am seriously struggling. Do I qualify for bankruptcy? Would I loose my home even though I owe more than what its worth? My vehicle is six years old and paid off and is worth maybe 6K, would I loose everything if I file? Thanks for any help.

[lrprn]

Failure, see my responses to your questions below in red:

I am in a situation that I dont know what to do. I am wondering if bankruptcy is my only option. I have a couple questions and hope to get some light on this matter.

I currently have 8 credit cards with a total balance of 50K. Four of these eight cards have hired lawyers cause I have not made any payments since April on these. I did not make payments cause I was in a debt settlement company called Achieve Financial. I was with them for 4 months giving them $1600 in total. After I quit Achieve, I was refunded only $800. Since then I have placed all 8 cards in a counsiling program with Green Path paying $800 a month to them. Couple problems, the original four cards I had with Achieve Financial are not excepting Green Paths proposals of credit counsiling. Even with out them accepting the proposals, Green Path is still sending the four cards a payment of around $100 each per month. I am starting to get calls from lawyers wanting to collect. What should I do?

Unfortunately you have discovered the hard way that debt counseling very rarely works for most folks for the very reasons it isn't working for you. Creditors who refuse to participate are preparing to push you over the edge, and even the creditors who have agreed to participate can still raise APRs and assign late fees....you are on a downhill slide. Time to take a serious look at your finances and see exactly where you stand.

I strongly recommend that you make appointments with 3-4 bankruptcy lawyers in your area to discuss your options. Most lawyers give a free half-hour to hour consultation with no expectation to be retained. Use these visits to lay your situation out and get opinions about your best options in this situation.

Other question, Last year I refinanced my mortgage to a 115% above value to payoff some other debt. Now I have a 175K mortgage on a home that is valued at 160K. My mortgage is $1400 a month. I take home $2900 a month with my job. As you can tell I am seriously struggling. Do I qualify for bankruptcy? Would I loose my home even though I owe more than what its worth? My vehicle is six years old and paid off and is worth maybe 6K, would I loose everything if I file? Thanks for any help.

A few questions first....which state do you live in? Have you lived there for more than two years? There isn't such a thing as "qualifying for bankruptcy" - you start by seeing where your income falls compared to your state's median income and take things from there. It certainly sounds like you are "house poor" and trying to keep your house is pulling you under financially to the point you are at bankruptcy. I'm sure this is very hard to think about, but do you really want to keep this house knowing it's ruining you financially and that you'll end up paying the bank more than it's worth for years and years to come? Some food for thought...when you get to this point, it's time to consider all your options, even the ones that are very difficult to think about.

Hope this helps a little. It would be really helpful if you could provide us with more details to be able to help figure out if bankruptcy is an appropriate choice in your situation. Hang in there - we'll help all we can.

[Failure]

I live in Wisconsin and have lived in the house for five years. I obviously cant sell the house. I am current with the mortgage. I make about 45K a year as a firefighter. I dont know what Wisconsin state median is but Im sure I fall right around it.

[SinkingFast]

The Median Income for one person is $38670/yr. Are you married? Do you have kids? The Median Income changes as you have more people in the household.

http://www.usdoj.gov/ust/eo/bapcpa/2...anstesting.htm

That's a link to the Means Test. You'll find the Median Income and Schedules allowables there.

Depending on which county you live in, you may get to add in the extra from your mortgage on the Means Test. Say the allowable for Rent/Housing in your county is $900/mo, you'd get to add the extra $500 later on the Means Test.

In Wisconsin, you can choose to use State or Federal Exemptions. That could give you enough Exemptions to cover your vehicle.

http://www.wisconsinbankruptcy.com/exemptions.html

You really need to schedule 2-3 appts with different BK attnys. Meet and chat with them about your situation. You can learn a lot, and hopefully, you'll find an attny who you'll feel comfortable working with.