After a long lay off I started back to work but at a lower pay scale. we had used the credit cards to get by. Now we owe about $850 a month in Credit Card payments.
My wife and I are on the brink of filling Bankruptcy. If we did choose to file do we get to keep the home along with the mortgage and can we choose to keep paying on a load that someone cosigned? will the person that cosigned be notified of us filling?”
When filing bankruptcy, your states exemption for home equity will come into play on whether the home will be sold and proceeds used to pay creditors.
If your home is underwater, and you are filing a chapter 7, you may want to seriously consider whether staying in the home and confirming the mortgage is the right thing to do while getting a financial fresh start and relief on other debts. You can qualify and purchase another home under FHA underwriting guidelines 2 years after your chapter 7 discharge is filed.
If you have a cosigned debt in your bankruptcy, you will likely have the option of reconfirming that debt in a chapter 7.
You should contact a local bankruptcy attorney and learn how bankruptcy would apply to your set of circumstances; keeping/not keeping the home; reconfirming debts; creditor and cosigner implications etc.
Best of success to you and your wife in the new year!
Michael Bovee has worked with financially challenged consumers for the past 17 years and is a recognized expert in his field. Michael founded Consumer Recovery Network (CRN) in 2006. CRN offers debt settlement services and educational resources nationwide. He has served as its president since 2006.
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