3 yrs. ago, I bought the house that I had rented for 14 yrs. It was a real fixer-uper. I borrowed aprox. 20k extra with my original motgage and also ran up another 10k on credit cards to remodel the inlaw aprt. downstairs. I then refinanced, paid off the credit cards, and took out aprox. 30k extra to remodel the upstairs while I lived in the inlaw apt. downstairs. I ran up aprox. 35k in c.c. debt and although I was able to move upstairs, it is not finished.
Although I am renting out the inlaw apt. I still had trouble paying the c.c.bills. Although I am current with the mortgage, I’m living in an unfinished home(needs aprox.20k to finish) and I haven’t paid the c.c. bills in aprox.9 mos. and now my credit is bad and I’m not sure what to do. I don’t think I can refinance with bad credit and an unfinished home, and I’m being hounded by the collection companies.
If you want to stop the hounding, your choice is bankruptcy. If you want to keep the home, then you are probably looking at a Chapter 13 bankruptcy.
Outside of that you have no other legal rights to stop the collectors except to send a cease and desist letter but that is just begging to be sued and does not solve the underlying problem.
I doubt you can lower your expenses any further or increase your income so that’s it. One more option, hand back the house, discharge all your debt in a Chapter 7 bankruptcy and start over.
I think you should contact a couple of local bankruptcy lawyers, find one you like, and setup a free bankruptcy consultation appointment to go in and talk about your situation and how can bankruptcy can assist you.