is bankruptcy my best choice? Please suggest
I have a new house with a private mortgage and after I moved in my income became reduced by $280.00 a month, my mother and I haven't been able to sell our old house, they have filed foreclosure proceedings and will definitely come after me for a deficiency judgment. I took our three payday loans to make ends meet in June and July, my bank account is overdrawn, and I am 1 month behind on my mortgage, will be two months after Sunday. I have not received a notice of default. I can't handle this on my own. I am freaking out and crying way too much.
I have been taking steps to change things: I have opened a new bank account with another bank, and those 3 payday loans go through them. I am going to open another account with that bank. Do I close the old one?
I can get my mortgage back on track if the payday loan interest is gone; I can't afford $350.00+ a month. Can you help or is bankruptcy the only way?
I dont' want to file, but I don't want to lose my home either. I have seen several attorneys, but they want too much money up front and money is something I do not have.
Chillman - Do not file for bankruptcy as it will stay in your cr
Chillman - Do not file for bankruptcy as it will stay in your credit report for 10 years. If a judgment is entered in your name, then a notice has to be served in your name. If it is not served, then you can file for Motion to Vacate.
I hope the consultant will be able to offer more help regarding this matter. Please let us know the suggestions that he offers to you.
I always encourage people considering filing bankruptcy to be ab
I always encourage people considering filing bankruptcy to be absolutely certain the have explored all possible options no matter how far fetched. No stone left unturned before they decide that filing is their only hope. I say this because I filed chapter 7 a littleover 7 years ago. To this day haunts me, never mind I make about 5 times what I did then. Admitidly there have been a few bumps since then but by and large my record has been good since then but that Bankruptcy still haunts and stops me from doing what I want to.
Bankruptcy should always be a last alternative. Right now, because the laws are changing soon, the Bankruptcy law-snakes are putting on a full court press to scare those who are scared and on the edge into filing now before the law changes.
From experience there is no quick or easy way to recover from a bankruptcy. You have the foundations with your current mortgage to begin rebuilding your credit once you get back on track.
$280 a month is a noticeable deduction, but really shouldn't be putting you over the edge. That comes down to $70.00 a week. If your were inclined to find even a low paying second job for a few months until things blew over, you could easily make up that $70 a week. If the other house is doomed to go into foreclosure, then you may have to take it on the chin with that one. Definitely don't let your current home fall into foreclosure without a fight. Is it too late with your old house to consider renting it out and using it as an income asset?
For some sick twisted reason mortgage companies WANT, yes WANT you to go 60 days past due before they even consider helping you. Call them up and explain the situation; they may be able to come up with forbearance or other payment plan that you can live with. Definitely work with your counselor. You still have many options open. With a little planning, creative thinking, and maybe a temporary second income, you should be able to recover in pretty quick order.
Keep your head up, and let us know how you are doing. Bankruptcy should always be a last alternative or the nuclear option as I like to call it. It'll take car of your current problem, but the devastation it leave be hind can be harder to recover from.
