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Will I loose my home if I file bankruptcy?

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Will I loose my home if I file bankruptcy?

December 31, 2009
8:36 am

Mike Killian

The Dalles, Or

Exceptional Member

Forum Posts: 187

Member Since:
November 13, 2009

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Hi sue,

yes there is hope but it does not come without bad news. Tragically if your husband needs good credit for the license, the damage may already be done with late and missing payments etc. These will remain on your credit report for about 7.5 years. You might want to take a look at your credit report before he applies.

As far as I can see, Bankruptcy is clearly your solution and I would contact a couple of bankruptcy attorneys as rapidly as possible. There initial consultations are usually no charge. Click here to find a local bankruptcy attorney.

You need to communicate with an attorney but my guess is he will suggest a chapter 13 which basically is a court ordered reorganization of your finances but you keep your property. This option is opposed to a chapter 7 where all your debt is wiped out but you also surrender assets unless you reaffirm a debt. In chapter 13 you may or may not loose some of your debt depending on the judges ruling.

The other thing I would offer you as this. You sound like you have a very strong marriage and this is very good. You must both look at this action as a step forward and not something you feel is a terrible thing. You need and your marriage needs fresh air to breathe and bankruptcy can be that fresh air. Contrary to what creditors lobby, most folks in your financial dilemma are not at all irresponsible. They are simply caught through circumstance in the middle of a financial emergency and that is what bankruptcy is for. Bankruptcy is intended to give you a fresh start and a new outlook.

One final thing. If you do elect to file, it will remain on your credit report for up to 10 years. That does not mean you can not get credit for 10 years. It simply means your credit score will be held down for a while.

Please let us know your decision and how it works out. Forum debt articles

Mike Killian - Learning Credit and Debt Management

December 30, 2009
11:34 pm

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We have been struggling with finances due to my husband's job loss; we are unable to pay our monthly obligations. Unemployment is only about a third of what he used to make on a monthly basis and we were living like many people do with in our monthly income but not saving. Now with unemployment and my job we barely have enough now to pay our mortgage, 2nd, and 2 vehicle payments leaving us with about 2000 a month in credit card payments we can't afford. I have borrowed from relatives, sold what I can, and used up all recourses (with the exception of our 401k) we have. We have talked about cashing in the 401k but don't want to pay the penalties on our money with retirement only being about 10 – 15 years away anyway for my husband.

Truth is I am afraid to file bankruptcy because I want to keep my house and cars. The credit card companies are not willing to negotiate the answers I get is "I'm sorry but we can't lower the interest rate" I just had one make me go over the limit due to the monthly interest and they charged me a 39 dollar over the limit fee. I haven't used the card in months, I even "opt"ed out of most of them and I have continued to make the minimum payments but I can't get ahead and now I have no resources left. I don't know what to do my husband is talking of getting a contractor's license and starting an electrical business since he is laid off anyway and jobs are not easy to find when you are over 50 with bad knees but bankruptcy and bad credit will ruin his chance of that since a bond requires you to have good credit. I feel like we are just tumbling around and around with no answer in site. I would like to just quit feeling all this stress and depression over our debt.

Truth is I am afraid to file bankruptcy because I want to keep my house and cars. The credit card companies are not willing to negotiate the answers I get is "I'm sorry but we can't lower the interest rate" I just had one make me go over the limit due to the monthly interest and they charged me a 39 dollar over the limit fee. I haven't used the card in months, I even "opt"ed out of most of them and I have continued to make the minimum payments but I can't get ahead andnow I have no resources left. I don't know what to do my husband is talking of getting a contractor's license and starting an electrical business since he is laid off anyway and jobs are not easy to find when you are over 50 with bad knees but bankruptcy andbad credit will ruin his chance of that since a bond requires you to have good credit. I feel like we are just tumbling around and around with no answer in site. I would like to just quit feeling all this stress and depression over our debt. Forum debt articles Is there any hope.