? re post Bankruptcy budget

[Shalynn]

I had my pre bankruptcy counseling session this morning. It went better than what I expected. Anyway, our budget will still be short about $250 after I go through BK. Hopefully, our house will sell by then (we've been trying for two years), and we wont have a problem.

My question is that since our budget will fall short can our house be taken from us? I'm married, but filing single. I fall within the guidelines as far as the home exemption.

We are current on our mortgage payments. I suppose if they wanted it, they could have it and try and sell it themselves...good luck with that.

Thanks in advance.

[lrprn]

My question is that since our budget will fall short can our house be taken from us?

As soon as you miss one mortgage payment, your mortgage company is likely to file with the bk court to lift your automatic stay and start the foreclosure process.

Since you are going to fall short on your income vs. expenses even after filng bankruptcy, sounds like your house may be keeping you and your family from a truly fresh start. Might be the best thing in the long run for you to let it go in your bankruptcy. Ask your lawyer what he/she thinks about this.

If the house is foreclosed on, as you say, the house will then be your mortgage company's problem. Start looking at your local rental market now so you have a sense of what's available when you need it. Depending on which state you are in, you could live in the house for a number of months without paying anything. Ask your lawyer about this too.

[Shalynn]

Thanks for the input. You made some good points I guess I should have added that I am married, but filing single. Which, changes things a bit. Nearly all of our debt in in my name only. Our next house will be purchased with the loan in my husband's name, but my name will be on the deed.

I don't want to let the house go because, among other things, that would affect his credit rating, making it harder for us to get our next home. I haven't missed a mortgage payment, and don't plan to. I will cut the money out of other places in our budget in order to pay it if I have to.

Our housing market is improving, and hopefully our house will sell soon. Besides our house, we have so many other things in limbo right now. I've been waiting on SSDI for three years (hope to have a hearing this fall), if that comes through it would help a bunch. Also, I'm just finishing up vocational rehab, and hopefully I will be able to work a part time job. That alone, would help our budget.

I guess because of the fact that if any one of things things happened, it would make us fall within a budget, I hate to give up the house. Also, the homes I've looked at, will end up being about the same, or cheaper than rent. I know the market pretty well as I'm a Realtor (unable to work now due to health, but still watch the market).

So, now that I've thought more of this through, I have another question. Would the fact that I'm going to be finding a part time job help our case? Or, will it not really matter unless it happens? I do realize I need to speak to my attorney, and I plan to. I just thought I'd get some input from others who have maybe gone through it. I also wonder about how much of a stickler they are as far as budgeting. We do have two teens that work, and they do help out with household expenses from time to time and also pay for their own gas, clothing, and eating out/fun money.

Thanks again.

[HHM]

Honestly, it sounds like you are psychologically attached to the house, (and most people are) and therefore your judgment is being clouded to some degree. To many of the things that "need" to happen to get you back on track are OUT OF YOUR CONTROL. It is never a good idea, especially facing BK, to make decisions about your financial future based on events that you have NO control over. (i.e. the real estate market, getting back to work, SSDI being approved or not).

Do you know if you live in a community property state?

Also, no offense to your husband, but why would he take the burden of a home loan, but not be placed on the deed...hmmmmm.

[Shalynn]

Honestly, it sounds like you are psychologically attached to the house, (and most people are) and therefore your judgment is being clouded to some degree. To many of the things that "need" to happen to get you back on track are OUT OF YOUR CONTROL. It is never a good idea, especially facing BK, to make decisions about your financial future based on events that you have NO control over. (i.e. the real estate market, getting back to work, SSDI being approved or not).

Do you know if you live in a community property state?

Also, no offense to your husband, but why would he take the burden of a home loan, but not be placed on the deed...hmmmmm.

I think you misunderstood. My husband and I will both be on the deed. He is the only one who will be on the loan. My husband of 21 years, is a wonderful, hard working man working about 70 hours a week (all salary, so no overtime). I am the one who made the choice to put the majority of our debt in my name when I became ill because I wanted to keep his credit in as good a standing as possible.

Honestly, I am not attached to this house at all. We have been trying to sell it for over two years. I physically cannot make it up and down the stairs many days. It is also much too big for me to keep spotless for showings. By moving we will save about $700 dollars a month!! I cannot wait to move. When I said I didn't want to let it go, I meant through BK. As both our names are on the mortgage on our current home. This would affect our ability to get a new home.

You are right about many of these things being out of our control. They are. I do realize that. I did go back over the budget that the counselor and I created yesterday, and I found several mistakes. I think she misunderstood a few of the things I said, I guess the phone couseling does have its drawbacks. We will only be about $100 short. Which is still too short I know. But, by adjusting our withholdings, that should now put us back on track with a budget.

I'm sorry if I'm asking too many questions. I don't always "get" things anymore. Too many holes in my brain now, I guess. Oh, we do not live in a community property state.

Thanks for your help.