Some more questions...

[Curious]

So...my hubby and I met with an attny this weekend, and we definitely qualify for a Ch7. We've decided to include all of debt into the bankruptcy, and surrender our home and one vehicle. Our house is still on the market, without any luck finding a buyer, or renter. Even if we were to sell it right now for it's full asking price, we would have to fork out almost $10K to get out of both loans on it...so basically we are upside down on it. I hate the thought of surrendering our home we worked so hard to build, but the financial burden is quite overwhelming...and the thought of doing so gets easier to deal with daily.
Here's a couple of questions I have though...

1) Should we continue paying on our debts (both secured and unsecured)?
What about home owner's insurance?

2) If we stop paying on the debts, then we can afford to put aside some money to help pay for relocation costs, a down payment on a rental property, and cash to buy a replacement second vehicle. Could we keep the extra money in a bank account, or will it be taken away from us if we do so?

3) How long will it be before the bank boots us out of our home after filing for BK?

4) How long will it be before the bank takes away our vehicle we are surrendering in the BK?

5) Do we have to wait a certain amount of time before we can make a large purchase like a vehicle after filing?

6) Will our credit scores immediately go up or down after filing? What steps need to be taken after filing for BK as far as our credit reports are concerned? What things do we need to watch for and monitor post-BK?

7) Can we move before the BK is finalized?

8) How long will it be before the BK shows up on the credit record? We need to find a rental property, and new utility providers, and cell phone providers after we move. Will the BK on the credit record affect all that, or make it more difficult?


OK, I think that's all. Thanks a bunch for all your input!

[CATCHMEIFYOUCAN]

Ch 7

So...my hubby and I met with an attny this weekend, and we definitely qualify for a Ch7. We've decided to include all of debt into the bankruptcy

You don't have a choice you have to include all your debt, although if you are still paying on a vehicle you its best to pay outside the BK (although you still have to mentioned it on your list of debts.)

, and surrender our home and one vehicle. Our house is still on the market, without any luck finding a buyer, or renter. Even if we were to sell it right now for it's full asking price, we would have to fork out almost $10K to get out of both loans on it...so basically we are upside down on it. I hate the thought of surrendering our home we worked so hard to build, but the financial burden is quite overwhelming...and the thought of doing so gets easier to deal with daily.
Here's a couple of questions I have though...

1) Should we continue paying on our debts (both secured and unsecured)?
What about home owner's insurance?

If you are declaring BK stop paying. Didn't your lawyer tell you that?

2) If we stop paying on the debts, then we can afford to put aside some money to help pay for relocation costs, a down payment on a rental property, and cash to buy a replacement second vehicle. Could we keep the extra money in a bank account, or will it be taken away from us if we do so?

I know what I would do with the extra money but it is against forum rules to be devious and suggest such things. (no not gamble -even though THAT would be me)

3) How long will it be before the bank boots us out of our home after filing for BK?

Others will chime in here with "asset experience."

4) How long will it be before the bank takes away our vehicle we are surrendering in the BK?

Not sure, repo is pretty quick AND sneaky though !

5) Do we have to wait a certain amount of time before we can make a large purchase like a vehicle after filing?

I think it is easier to get a better interest rate BEFORE you file than after you file, they rape you on the interest rate afterwards !

6) Will our credit scores immediately go up or down after filing? What steps need to be taken after filing for BK as far as our credit reports are concerned? What things do we need to watch for and monitor post-BK?

7) Can we move before the BK is finalized?

Sure you can move just let the Trustee/Lawyer know.

8) How long will it be before the BK shows up on the credit record? We need to find a rental property, and new utility providers, and cell phone providers after we move. Will the BK on the credit record affect all that, or make it more difficult?

Your Bk shows almost immediately ! You might be requested to put more down on a rental. If you haven't defaulted on utility creditors I don't think it should be that hard. Cell phone .. hmmm .. questionable (really now sure).

Best of Luck CatchMeIfYouCan

[lrprn]

1) Should we continue paying on our debts (both secured and unsecured)? What about home owner's insurance?

If you are certain you are going to file, then there's no reason to continue to pay your unsecureds. If you are certain you are going to let the house go, then you can stop paying your mortgage. After two months of missed payments, your mortgage company will start foreclosure actions. Depending on the state you live in, you may have a few months to a year and a half before the home is actually sold to another buyer. As far as your homeowner's insurance goes, as long as you own the home, you are liable for any accidents or other damages until the house is sold. Most lawyers will recommend that you keep your insurance current until the home is sold.

2) Could we keep the extra money in a bank account, or will it be taken away from us if we do so?

If you intend to file Ch 7, then your lawyer will recommend that you have as little money as possible in your accounts on the day you file. Instead spend that extra money on acceptable things before you file - move to a new rental, catch up on car maintenance, clothes, health care for your family, etc.

3) How long will it be before the bank boots us out of our home after filing for BK?

Depends on the state you live in. What state do you live in?

4) How long will it be before the bank takes away our vehicle we are surrendering in the BK?

Typically after two missed payments in a row, you can start looking for the repo man. Be sure to keep everything you need out of the car in case it disappears one night. A better option is to voluntarily surrender the car by calling the dealer and asking them where you can drop it off.

5) Do we have to wait a certain amount of time before we can make a large purchase like a vehicle after filing?

Depends on how much you can put down and how a recent bankruptcy on your credit record is handled by where you make the big purchase.

6) Will our credit scores immediately go up or down after filing? What steps need to be taken after filing for BK as far as our credit reports are concerned? What things do we need to watch for and monitor post-BK?

Depends on how bad your scores are now. If you've been missing payments and your scores are very low, they can actually go up after filing. However, most of the time the scores go down after filing. Frankly, your credit scores should be the least of your worries at the moment.

7) Can we move before the BK is finalized?

Yes.

8) How long will it be before the BK shows up on the credit record? We need to find a rental property, and new utility providers, and cell phone providers after we move. Will the BK on the credit record affect all that, or make it more difficult?

The bk will show up within a few days. A fresh bk on your credit record often will make things more difficult to get, especially if you file against a utility, so best to get all that in place before filing if you can.

Hope this helps!

[jal1129]

Quote:
4) How long will it be before the bank takes away our vehicle we are surrendering in the BK?

At my 341 there were people there representing different banks giving instructions to those who were giving up thier cars on when and where they could turn them in. So if it has'nt been repo'd by your 341 they will probably give you instructions then.

[Curious]

OK, so I talked to attorney today. He answered most of my questions, so between him and this forum I think I'm good on the last set of questions I posted. However, shortly after hanging up the phone with the attny our realtor called and said he has two people who are very interested in our house and expects an offer any day now. So, here's some new questions...

-Does anybody out there have any experience with a "short sale" or negotiating down the pay off amount on a mortgage? Do mortgage companies do this? And if so, about how much money do they normally knock off?

-We are still considering surrendering one of our vehicle's either way (we're upside down on that loan). How much worse does it look on your credit to have a repo'd car and short sale on a mortgage than a BK?

Thanks again!