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6 mos behind, any advice?

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    6 mos behind, any advice?

    i havnt paid a credit card bill in almost 6 months.

    i am in michigan, and self employed, and business is very slow.

    i owe about $30,000 to 5 cc companies.

    i own a house i purchased with cash after a divorce

    i paid $45,000 for the house,,,,its probably worth 70,000 tops.

    i own a beat up truck worth 2,000

    and a large van worth $10,000 (there is a balance of $1,400 i am paying off)

    i have no idea what to do.

    i cannot pay or promise creditors anything at this time,,, business is terrible.

    i would like to pay, but i will certainly fail in this economy.

    my dream would be to sell my house and work out a cash deal with my creditors.

    are they going to take my house, sell it cheap at auction, and ill end up with nothing?

    this isnt going to go away, and i want to deal with it,,,but the bk lawers ive chatted with say ill likely repay everything.

    should selling this house be my first priority?
    any advice?

    #2
    Since you have considerable equity in the house, then yes, I'd say sell it if you can, pay everything off, and start over. You may be able to negotiate with your lenders for 20-50% of what you owe, just be sure to get everything in writing.
    DH laid off 3/08 | Last mortgage payment 12/09 | Filed Ch13 5/10 | Converted to Ch7 7/10 | 341 held 8/10 | AP filed by secured creditor 10/10 | Ch7 discharged & closed 11/10 | Foreclosure 10/2011

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      #3
      Agreed. If you can, sell it, take the money, and start offering 20% of the total balance to your creditors. You may end up with 15 or 20k in cash, no house, but no debt either. Won't have a BK on your record and can start rebuilding your credit.

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