Your parents SHOULD NOT use their money to bail you out....your husband will file and everything will be fine. Many people feel that way about bankruptcy and as someone already posted it is encouraged to think terrible thoughts by the banking system (credit cards). The reality is that people are finally catching on to the banking rouse and do not live and die by the almighty credit score. They can't scare us any longer and they can't control us, it really sucks for them I guess. They lost a lot of power and credibility in the past few years and fell hard. I guess their worst nightmare is coming true, they are NOT too big to fail, they are just another company in the big scheme of things.
Not sure why you said anything to them in the first place but it is really no one else's business and no one will probably know unless you choose to tell them. Good Luck!
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You are not at all naive. Your parents are sweet for wanting to help, but their perception of how terrible BK is is exactly what the credit industry wants everybody to think. Sure, there are some lenders that will never lend to you again. But there are plenty of others who will. Your suggestion that they use the money to help with a down payment in a few years is a good one.Originally posted by Dancer View Post
We see bkforum members come back a year or more after their discharge to tell stories of how well they are doing. Their stories include new jobs, new cars and new mortgages. I don't remember ever seeing anybody come back after discharge and say they regret filing.Leave a comment:
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Bankruptcy was the best thing that ever happened to me!! I wish I had done it sooner. I was a CPA - S--t happens and things will go on.
Your parents should keep their money - no point in trying to save a dead horse - Tell them not to worry!!!Leave a comment:
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Your parents need to keep their money. It is wonderful that they want to help out, but at this point it would be the same as them taking their perfectly good dollars that they will need to live on down the road, and setting it on fire.
Bankruptcy can be painful, but it is a sound business plan for your DH to get a truly fresh start in life.
Good wishes to you!
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Regrets?
Hi everyone, my husband will be filing for Chapter 7 in about a month. He has a home that is underwater. We tried to do a short sale but the bank wants him to sign a large promissory note. We stopped paying the mortgage about 6 months ago and they have begun the foreclosure process although they stopped it when the short sale was pending. He also has some small credit credit card debt ($16K) and and a second mortgage on a home that he owns with his ex-wife. Chapter 7 seems ideal for him. We don't want the house as we live in my house. It solves the issues with the house, second mortgage and credit cards. He has no assets he needs to protect. We live in my house.
We've told my parents of our plan and my mother is now offering to help out. I think it's a really bad idea for them to use their money to help pay off a worthless mortgage. I told her that if they want to help us they can help with a downpayment in a few years when DH can qualify for another mortgage. Plus the second mortgage and the minimum payments on the credit cards is about $700 per month which makes our monthly budget go from doable to really tight.
My parents are acting on the assumption that declaring bankruptcy is the worst.thing.ever, KWIM? That it will ruin his life and make it hard for him to get a new job and all of that. My DH is a tax accountant. I'd say his job is secure but in this economy no one's job is really secure.
Bankruptcy is painful but I don't think it is bad enough to be worth taking money out of my retired parent's savings to prevent it.
What do you guys think? Am I naive? Is it worth pulling from savings that won't be replenished to avoid bankruptcy?
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