New to forum...couple of questions...

[aveda6]

Hello and first let me thank everyone for this website. I have been reading many of the posts over the last few days. I have faced the necessity of filing bankruptcy after trying to avoid it for the past few months.

I spoke with an attorney and started collecting the paperwork. He advised that I keep up with my payments on the three mortgages I have. I'm already behind on the credit cards as I was trying to resolve them through a debt management program (couldn't afford the payments and will be withdrawing from the program this week). I was curious why I need to keep current on the mortgages? I plan on giving up the house and moving to help reduce the burden. I will likely have to file 13 as my salary is just above the means test (lawyer will be looking into it the week or next).

Also, how long does it take for a bk? I have seen anywhere from 4-6 months, but my question is when would I lose the house and need to find an apartment? Would it be sooner than the closing? I have no idea where I'll find an apartment that allows a bankruptcy, but I don't want to look until I'm at least reasonably close to moving.

Any information is greatly appreciated. I don't plan on sleeping much for the next 6months. All I do is lay awake at night going over all of the issues.

jim

[SinkingFast]

Foreclosure timelines vary according to what State you live in. Other factors as well. Such as how many other Foreclosed properties your Lender is currently holding. Having too much REO property on the balance sheet does not look good to investors. Sometimes Lenders will drag their feet on Foreclosure until it suits their needs.

To be on the safe side, your best bet is to have a rental lined up before you file BK. Maybe even be moved in. Landlords know that at any time while your BK is open and active, you can discharge your debt on your Lease with them.

[aveda6]

Thank you for the response. One more question. How would I line up a rental? I mean how long in advance before the filing will result in a closing of the bk? I don't have the income to pay for a full rent apartment while also paying the mortgages so if the bk takes 6 months I'd be in a world of hurt. Can I line up a rental for say, March, hoping that the BK proceedings will close within a few months of that?

jim

[BKTango]

You stated in your post you will likely be filing a Chapter 13 due to your income, but surrendering your home through bankruptcy. You are wondering how long the bk will take? Your ch13 will carry on for anywhere from 3-5 years depending on your payback, not 4-6 months that would be a ch7. If you are wondering how long it will take to get your payment plan confirmed, maybe someone who has done a 13 can respond but I believe really it all depends on your case, some have taken very little time some have taken a year, but you have to start paying immediately into your plan and your case will not close until you are done paying. A lawyer will help clarify this so do not be afraid to ask many questions, that's what they are there for and what you are paying them for. Does your lawyer know you are prepared to give up the home?

[poorme]

The bk process can be as quick as 90 days file-to-discharge, but seem to average 120-180 reading from the boards. A number of factors: your local district's caseload, your 341 hearing date, extenuating circumstances, potential need to reschedule, and your attny's diligence to stay on top of each next step. A lot of this is 'automatic' so attny's tend to wait until they're notified and will plan their responses for the date due. Some states have quick foreclosure processes and some, like NY, can take up to a year before eviction begins. Read up and help your attny know you're knowledgeable - it's OK to ask them pressing questions - don't be shy. I'm guessing he/she advised you to keep up the mortgages because in a ch 7 being current is the only way you can keep the house. If you're planning on giving it up - maybe that's ill-advised. Spend the money on the here-and-now. Good Luck, and stay with us! There's a lot of good information for you and remember - you're not alone.