New to the forum, need to advice from people who have been there before.

[amymelissa78]

I just called yesterday and made a consultation appointment with a bankruptcy attorney.

My husband and I are in a tight spot and don't see anyway out of it, but to file for bankruptcy and foreclose on our house.

My husband got laid off on Monday at his job. He has been a loyal employee for the last seven years, our hearts feel like they are being ripped out of our chest and we have been walking around in a kind of confused daze for the last 3 days. Before he got laid off, we were taking home a little more than 4k after taxes and everything and we were paying about 4k out in debt payments and living expenses.

Now with him being laid off we will have about 2800 coming in every month for the next 6 months and then we will have about 2k coming in once he is not eligable for unemployment if he is still not employed by then. The industry we work in is very much affected by the economy and no one around here is hiring right now for his line of work.

I feel like we have been headed in the direction of filing and foreclosure for the last year and a half because, we could never get ahead, everytime we felt like we were making a little bit of ground, some big disaster would strike and set us back. Because of my husband loosing his job, our journey to this point in our lives just got excellerated. We have been miserable because of our debt for the last year and looking back, the only thing we ever fight about in our relationship is debt.

We have come to the realization that there is no way we can pay our bills and we need to wipe the slate clean and just start over fresh again. That is really the only light at the end of this miserable journey for us. We were raised to never file bankruptcy or foreclose, but we feel that once the process is over there will be this humongous weight lifted off of our chests and we will be able to breath for the first time in almost 2 years.

I am just wondering what the best way is to go about this whole process, because I am kind of confused by some of the things I have read on this forum and other things I have read online.

Can you roll your house into bankruptcy or would it be better to foreclose? We think we might be relocating somewhere where we both can have jobs in our industry, so we would like to stay in our house as long as possible, because we are not about to sign any kind of lease on an apartment since we are thinking about relocating in the near future. With this in mind, which option would make more sense for us?

How hard is it to find a place to rent after going through this?

[JRScott]

What state do you live in?
What was the gross income of your household for the last 6 months?
How many in your household?
What is your mortgage payment(s)?
What are your car payment(s)?
What is your health insurance payment?
What is your car insurance payment?
What is your home insurance payment (if not included in mortgage)?
What do you spend in a month on food?
What do you spend in a month on grooming?
What do you spend a month on gas?
What do you spend a month on car maintenance?
What is your county taxes monthly?
Do you owe any back taxes?
Do you owe any student loans?
What is your credit card debt?

You mention moving, would it be to a different state?

[Flamingo]

You also need to list the value of your assets (home, savings, stocks, etc.).

It sounds like you are working but your husband just got laid off. You need to stop all unnecessary spending and your hubby needs to try to find another job which in this economy is like winning the lottery in some places. Did he receive a severance package? It sounds from your posting that he did not.

While it seems like the end of the world it is not. I, and many on here, have been in that situation and right now it is all confusion, worry and emotions. So many people are losing their jobs everyday and the paper is full of numbers of layoffs at various companies in the coming weeks. My husband works retail and his monthly checks are $300-$400 less per month, while living expenses continue to rise, and many others in similar businesses are feeling the same.

If you post the above information requested by the previous poster (and also your assets) some folks on here can give you an evaluation as to your situation. Your next step is investigate whether or not you can file for BK and what Chapter.

Best of luck to you - it will get better...

[evilxs]

Since the above posts have already asked for everything I'll just say welcome, and glad you found your way here.

I would venture to say most of us never imagined being where we are now. Most of the scam artists who enjoy filing don't need help from a forum to go through their practiced routine.

I'm a first time filer and like you I agonized over this decision. I probably should have gone through a bankruptcy years ago. Smile and look forward. It is an awesome feeling to think about a paycheck where you have no cc payments. Life isn't meant to be like this.

[amymelissa78]

Sorry it took a while to get back

We have been getting our information ready to meet with a BK lawyer on Monday.

What state do you live in?

Minnesota

What was the gross income of your household for the last 6 months?

6k/mo. take home, averaged out from paycheck stubs, but it fluctuates, because we make minimum wage+tips and the tips are included on our paychecks and they tax it like normal income. Now that my husband is laid off, with his unemployment, we will average about 4k a month take home.

How many in your household? 3

What is your mortgage payment(s)? $1754.00
What are your car payment(s)? $736.00
What is your health insurance payment? comes out of paycheck
What is your car insurance payment? $150
What is your home insurance payment (if not included in mortgage)? $50
What do you spend in a month on food? $500.00
What do you spend in a month on grooming? $120
What do you spend a month on gas? $500
What do you spend a month on car maintenance? $100
What is your county taxes monthly? $200
Do you owe any back taxes? No
Do you owe any student loans?No
What is your credit card debt? $33746.07 total @ $900.64/month

We also have a pile of medical bills that we have incurred this year: $4101.24

Are total debt with mortgage is $284591.28
And our total monthly payments with out paying anything to medical (which we haven't been able to do) is $6080.76



You mention moving, would it be to a different state? If we move, it wouldn't be untill the springtime, because we are both casino dealers and right now, there is no one hiring withing 200 miles of hear, but we would probably move to AZ or WA state where the casino business is still ok.

We keep our own tips where we work right now and it is the only gambling establishment in the state that does it that way, so if he gets a job at one of the casinos that pools tips, he will take a $20k a year paycut on what he was making at the job he had, so unless he gets that job back, we will have less income coming in. There aren't really any jobs, that he would make enough money that it is even worthwile for him to go back to work, and have to pay for daycare again, besides dealing cards.

I am worried about this means test, because our income for the last 6 months was higher than what they allow in MN for a family of 3. We would much rather file 7 than 13 and we think that we have enough debt to do it, but I keep reading all these different posts and I get confused.

Since the economy sucks, we don't know how long he will be unemployed, and if business slows down even more, they are talking about more layoffs in Jan. or Feb. possibly(could be rumors, but I don't doubt it either), we don't even know how safe my job is right now.

Any advice for us would be helpful.

Thanks so much!

[keepmine]

I am worried about this means test, because our income for the last 6 months was higher than what they allow in MN for a family of 3. We would much rather file 7 than 13 and we think that we have enough debt to do it, but I keep reading all these different posts and I get confused.

You don't have to file today. Wait a few months until your income is below the median. If bk is the end game, stop paying all debt you wish to include in the bk and use that money for living expenses and legal fees.
Yes, you can include the mortgage in the bk.