Debt relief for the unemployed: Is bankruptcy the solution?

Have you look at filing a chapter 7, get a fresh start???

Soaplady, I have thought about bankruptcy but haven't looked deeply into it yet. What i would love to do is keep the house and keep paying on that, but dump all the other debt. I am trying to get mortgage payments reworked to be more affordable.

I agree with Soap. You should investigate your Chapter 7 options.

You're a homeowner, so to answer your original question, they may find it attractive to pursue you for judgment and execute it by placing a lien on your property.

Chapter 7 would protect you from that scenario and it would also allow you the ability to rehabilitate and recover.

Most people who file Chapter 7 bankruptcy acquire new credit within 2 years of filing. So it's not the death nail that it's made out to be.

How much delinquent debt do you have?

thanks Jared. I have probably 40-50k ccard debt.

So now my question: what agency or lawyer can I trust will do a great job re: looking into Ch 7?

A good resource I refer people to is - http://bankruptcy.getoutofdebt.org/

If Steve doesn't have any attorney's listed in your area try Google.

Also, it is important to meet with 2 or 3 different ones. They should offer you free consultations. Please check back in with us to let us know how it goes.

thanks much Jared. I'll check that link.

No problem. I hope everything works out for you.

If you file Chapter 7, then you wouldn't be able to keep your house. Try settling your debts with the collection agencies and see how things go.

If you file Chapter 7, then you wouldn't be able to keep your house. Try settling your debts with the collection agencies and see how things go.

Sanders, you can keep your house.. as long as you continue making payments on it. that's my understanding anyway. I just need to do some homework on who i can trust to help me file/figure out if this is right for me, which so far, ch 7 does seem like the right option.

Sanders, Soap and Anne are correct. Each state has different exemption allowances. In some states it's the entire homestead. In others it might just be $30,000 in equity.

Anne, for most people, their concern is about their future. So the option that leads to the most stable and quickest resolution is best, if that is your main concern.

You may want to read my article - should i file for bankruptcy?

And my article on how to recover from debt.

These two articles should help you better understand your situation.

Please feel free to reply with any questions.

thanks Jared, yes, financial stability and keeping my house are my main concerns. And being able to keep making payments on the house which is very hard to do at the moment. I'm trying to renegotiate my payments.

I would suggest a lawyer who will give you a free consult. Also, one who specializes in bankruptcy/consumer affairs and not a jack-of-all-trades. Good luck.

Avoid filing bankruptcy, you can negotiate settlement with the CA to avoid losing your property.