My divorce is about 3 weeks from being done. There is no way I can keep my house by myself and pay the bills that I have. If I didn't have my house payment I could have my bills paid off in no time flat. My question to you all is it better to just let the bank take the house back and then pay off the rest of my bills off or to just go a head and file bankruptcy with everything involved and start over from the start. Thanks for everyones help.
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Bankruptcy is a difficult decision and it is not a decision to be taken lightly. Unless there is no other way out and you've exhausted every option available, bankruptcy is the last resort.
That said, can you tell us more about your situation? It may help if we know a little more about financial situation.
IMO, I would keep your assets (house or car) if you can and let the bills be handled in a BK.Bankruptcy History:
Chapter 7 filed - 10/12/2005 - Asset
Discharged - 02/16/2006
Case Closed - 11/08/2007
A banker is a fellow who lends you his umbrella when the sun is shining and wants it back the minute it begins to rain ~ Mark Twain
All suggestions are based on personal experience and research and SHOULD NOT be construed as legal advice as I am NOT an attorney. Always consult with competent counsel in your area with regards to your particular situation. -
The soon to be ex and myself took a subprime loan 2.5 years ago. Well it has adjusted to almost 1200.00 a month and there is no way that I will be able to keep the house myself and pay child support and there is no way to get out of the house what we owe.
I would say that total I may only have about 3 - 4K in in unsecured debt.
I guess my biggest worry would be letting the house go and paying everything else off and then never being able to get another loan for a house down the road.
I'm pretty sure that the ex is going to file BK after the divorce is done.Comment
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A lot depends on if you have just 1 mortgage and your State Laws about deficiency balances on Mortgages.
Many States don't allow for Mortgage Lenders to seek a deficiency balance from the borrower on a primary mortgage.
I'd suggest you Consult with a couple of BK attnys or attnys that specialize in Real Estate Law. See what would happen in your case if the house goes to Foreclosure or you give it back to the Bank. Deed in Lieu of Foreclosure.
One note of warning,.............. BK attnys will be slanted to the BK side.
Once you know what you're dealing with as far as the house, then you can look at all your debt and make an informed decision.
Maybe it might work for you to let the house go and pay off the rest of your debt. Maybe the best way to go would be to file and start fresh. But you won't really know until you learn what you're dealing with.Filed Ch 7 - 09/06
Discharged - 12/2006
Officially Declared No Asset - 03/2007
Closed - 04/2007
I am not an attorney. My comments are based on personal experience and research. Always consult an attorney in your area to address concerns related to your particular situation.
Another good thing about being poor is that when you are seventy your children will not have declared you legally insane in order to gain control of your estate. - Woody Allen...Comment
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