I have been trying to work out a loan modification with my lender Bank of America for several months now. Bank of America granted me a 3 month forbearance to allow me to repair my home from Hurricane Ike damages. During that time, they asked me if I wanted to attempt a loan modification. I said, yes that sounded like a great idea. What a nightmare! It has been delayed and mishandled. What was supposed to take no longer than 90 days is now at nearing 180 days. They are putting my resumed mortgage payments in a category called “partial payment balance” instead of applying to the principal balance to make it look like I am more behind than I am.
Also, I am being sued by Citibank for $14,000 for credit card debt.
I want to file bankruptcy but am not sure. I have been researching and taking notes, making charts like Advantages/disadvantages and still don’t know what is the best thing to do.
Is it best to wait after my loan modification is accepted or should I file bankruptcy now? I live in Texas and we do have many laws to protect homeowners but have heard so many horror stories that I am not sure of anything anymore. HELP!
Excellent question. To wait or not wait.
It seems to me that you probably don’t have either a great defense for the Citibank suit or the money to pay that bill. Otherwise, you would have.
But if time is what you need more of then getting sued and losing will eat up part of the clock. You can always ask for a postponement of the court date to delay things a little longer. But that’s just a stalling tactic and not a solution.
Your best bet is to put down the charts and colored pencils and find a local bankruptcy attorney you like. The best time to see a bankruptcy attorney is not on the day of filing but ahead of time so you can work out a mutual plan on how best to work out issues and time the bankruptcy.
It certainly appears that bankruptcy is in your future so I think today is the day that you need to go and develop your game plan with a local bankruptcy attorney.
Call three bankruptcy attorney office and then go the see the one that you like the best. Most of the bankruptcy process orbits around customer service rather than rocket science so you want to make sure you enjoy the office folks.
After your appointment, come back and give me an update in the comments section on what your plan is. I want to know.