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We Are Both Out of Work and About to Lose the House. Should We File Bankruptcy? – Maria

“Dear Steve,

My husband loses his job as of this year in a couple weeks. Due to family illness, I lost my job 2 years ago.

He is in his late 60’s & I am 60. Due to all foreclosures in my area, unable to sell house for what we owe. We would have to pay out almost 9-15k to sell. Tried to refinance bank sent independent appraiser who went under what county appraised at.

It was at 110k we owe 115k.

We had small savings paid down cards and now owe 33k in credit card debt. We could live with my mom for very little. I could keep trying to find work and my husband wants to try to do contract work to try to sell house at 115k ourselves but we would probably have to pay closing as anyone buying a house in our price range wont have closing costs.

The first realtor we hired told us it would not sell due to the foreclosures and they only handle foreclosures these days. They listed the house at 133k. After 3 months, we never went back to realtor.

We talked to a lawyer who suggested file bankruptcy and try to sell for 6 months then foreclosure due to my husbands income. Our income will drop in half in 2 weeks and he said they look at the last 6 months of income so wait.

Should we file bankruptcy and try to sell house for 6 months. We thought after 6 months, we would then stop making mortgage payments and let it go to foreclosure. Or any thoughts on our situation.



Dear Maria,

I think the answer has already been made for you by the math. Let it all go now and start over.

The only way to fit your future life inside your income is by altering your expenses. It’s a classic example of the theory of dissavings.

The most logical way to do that in your situation is with bankruptcy to get a clean break and a fresh start.

You can click here to find a local bankruptcy attorney and talk to them for free about your specific situation. Get the facts and then you can make an informed and educated decision if bankruptcy is right for you.

Bankruptcy Articles and Posts You Must Read

To get ready to read the information below with the right frame of mind, please first read How Do I Get Out of Debt Quickly? Change Your Mindset.

Bankruptcy Advice

Life After Bankruptcy

Filing Bankruptcy Yourself

Please post your responses and follow-up messages to me on this in the comments section below.

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About Steve Rhode

Steve Rhode
Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

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