My business failed after 17 years. I Will not bore you with the details. This was my family main source of income. I guaranteed all business loans for the business including two SBA loans.
I have just received a Summons from AMEX for one of the accounts, expecting several others to follow, as I am unable to make payments (any) as I do not have job. They omitted the details about the account or any proof. I guess I could answer that, the plaintiff did not not provide sufficient information about the account; but to what end?
I have prolonged bankruptcy because I have not had the money $3,000.00 and was hoping to have job by now. In all it sums up to about 389K.
On my personal side, I am behind my 1st and 2nd mortgage and currently on “Modification” for my 1st Mortgage. I think as I writing this email, I am answering my own questions… bankruptcy being my only option as there is no way I can come up with any funds for lump sum negotiations. However, how would bankruptcy affects my mortgage modification and is my 2nd mortgage dischargeable under the bankruptcy?
I wanted to avoid bankruptcy at all costs, fearing a background check, most senior level executive position require a credit check… However, I am getting over the psychological devastation and the “damage goods” self-perception; I need to face the situation.
All thoughts are welcome please!
The second mortgage may be able to be stripped if the house is now worth less. But you’d have to do a chapter 13 bankruptcy and I doubt you would be a good fit for that since you don’t have any income to make those payments.
I get it. I was in the same position once but your fear of the “what if’s” is clouding your judgment about the current debt. You don’t want any creditor suing you and going for a lien on the house.
But you need to evaluate your entire situation through a logical filter and not an emotional one. I know, easier to say than do.
It might be time to revaluate everything, including considering giving the house back to the bank if you are way underwater on it.
Bankruptcy is a legal fresh start, a second chance. You should try to get as much benefit out of it as you can and use this opportunity to start your life over. If you do that things can be better, faster.
As far as being worried about what someone in the future may think, you’ve got a great story and you got caught in a financially traumatic time in our national economy. It’s not like your were intentionally reckless. What I’m saying is that your situation can be logically explained.
Currently you are stuck in the “I’m a loser” mentality. Again, I’ve been there. Just because you may be having those thoughts does not make it real.
I’d suggest you first read How to Get Out of Debt. The Honest and Unvarnished Truth and The Truth About The Success Rates, Failure Rates and Completion Rates of Credit Counseling, Debt Settlement, and Bankruptcy. They will give you a great overview of what we need to deal with to get you moving in the right direction.
Then use the free How to Get Out of Debt Calculator to review your options.
After that, come back here and comment about what seems to make the most sense and let’s discuss that.
Bottom line, if you accept the situation for what it is, embrace the path out, and proceed with diligence and clarity this will be behind you quickly. Regardless of what you eventually do, you owe it to yourself and your family to meet with a local bankruptcy attorney and discuss your options. You can click here to find a local bankruptcy attorney.
Please post your responses and follow-up messages to me on this in the comments section below.