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Everything posted by sje123

  1. Thank you so much. She is in such a panic about EVERYTHING and this will help!
  2. The issue is that in previous years the husband deducted the property taxes and when the refund came in, he paid them. This is how it was working, unbeknownst to her who thought that the taxes were escrowed. In the last two years she just followed the deductions but when the refund came, she didn't pay them because she did not realize they were not escrowed. Then the bank paid them (even though she took a deduction for paying them which she didn't). So her mortgage payment went up thousands of dollars which led her to consider bankruptcy (there is no way she can make the basic payment let
  3. Thank you for all your replies. Wouldn't the trustee notice it? Her mortgage went up thousands of dollars due to the mortgager paying the back taxes yet the taxes are deducted on the tax returns.
  4. My friend who is about to declare bankruptcy (or rather go see a lawyer about it) discovered something very distressing on her income tax returns. Her late husband deducted the property taxes that weren't paid 2 years in a row. Apparently he had planned to use the tax return to pay the taxes that he already deducted and had done so in previous years. But she had no idea until she looked through her tax statements. She received about 8k back every year. Does she re-file the tax returns and then try to discharge what she may owe the govt in bankruptcy? It's taken us a while to talk her in
  5. Very helpful. Thank you. No large withdrawals but one 1.5k "purchase" that may seem frivolous (football tickets) for someone on the verge of bankruptcy but were purchased for a lgroup and they typically make a profit on any they don't use. Every year it comes automatically out of this one person's account and it already has. Person is freaking out that it will look bad.
  6. Do you have to explain all your expenditures on your bank statements when filing for bankruptcy? Is it best to close your accounts and shut down all your auto payments before hand?
  7. I had some questions regarding bankruptcy on the other forum for a friend whose husband died leaving her with a 10 year old son and a mortgage she can't pay and a house worth half of what she owes. She has been carefully considering the bk (we convinced her she has no choice, really) and has an appt with an attorney. Her loan(s) [first and second mortgage] were with First Franklin. She did not have an escrow account but they paid her taxes bringing her mortgage payment higher than what she earns (that's ONE mortgage payment). First Franklin was, however, taking the regular amount each month.
  8. Thanks for the answer. Yes, there is no way she could move now because she has no money and I seriously doubt she would find a place in two weeks. Plus there would be no point to it if the foreclosure would take that long. She could put money aside to find a place to live. We are trying to present BK as an attractive option to someone who is clearly drowning in debt, feels guilty and ashamed about it, but needs to do something. I've heard of so many people who have to declare BK after a death or some traumatic thing and yet she thinks she's the only one who isn't making it even though s
  9. Thanks for the questions. State is New York. She has two mortgages. The first is for 425k and the second is for 100k. The payment on the first is 2200 and the second is 1500. This does NOT include her taxes and insurance which is about 500 more a month. Both mortgages are with the same company. The first is interest only and the second is a whopping 12 percent. Their plan was to buy the house and refinance and that didn't happen because her husband got sick and later died. She can't afford the house even without the second mortgage. She paid 525 for the house and it is was appraised a
  10. I posted a few weeks ago regarding a friend who is considering bankruptcy after the death of her husband. She has a 10 year old child. Questions: 1) She was struggling to pay off credit cards and is current on about 3/4 of them. 2) Her mortgage is 4k a month and she is about a month behind on it though she's slipped into 2 months from time to time and received a lot of mail from the finance company telling her to go to HUD counseling etc. 3) She doesn't want her house (completely under water) but can't afford the rents in the town where she lives. She would like her son to complete the sch
  11. This is exactly the opposite of what I've heard. My understanding is that you can start getting credit again after about a year with bk because you have no debt.
  12. WRT Option 2: how long could she go without paying the mortgage before she has to file chapter 7? Both mortgages are with the same company and I told her to def stop paying the second. but she's "taking turns" paying them. thanks again for the advice and information!
  13. Thank you. She's actually more nervous about closing the credit card accounts than losing the house. She has a Citibank VISA since 1990 that she's always been current on (credit line 10k and she has maxed it out), AMEX Gold that she's had since 2000 that she's always been current on. I think, honestly, it's a matter of pride or something. She is willing to let go her house but not those 2 credit cards. Crazy. But I told that I did not think the bk court allows you to affirm credit card debt or if the cc company knows you are in BK they close them anyway. Thanks for your advice.
  14. I have a friend whose husband (second earner) died last year and she has a 10 year old child. She is falling behind each month but tries everything (juggle bills, take temp jobs) to keep up and is failing. Some months she does get some extra work (medical billing) and can catch up but other months she falls behind. I know the situation is very stressful. She has two mortgages that total 4500 and she makes about 6000 a month gross, 5000 net and has about 40k in credit card debt. She has no equity, or negative equity, in her house which she wants to try to hold onto for at least a year to se
  15. More information: 1) she makes over the minimum for her state (state is 49k and she makes 75k) for Chapter 7 bankruptcy 2) her mortgages are subprimes due to the fact that she was selling another home and had planned to refinance when they were sold. They did not sell for a long time and in the meantime she was out of work for several months for cancer treatments. She is now back (and cancer free) but the ordeal had quite an effect on finances. 3) the bank took over the tax and insurance payments because she was always behind. They paid the arrears and added the escrow payment to her monthl
  16. A friend of mine is underwater on her home for various reasons. She called around for help and one realtor directed her to a short sale investment company called SureFit Properties that basically negotiates the short sale and then buys your house as an investment. She asked me about it but I know nothing about it. Any ideas about this avenue?
  17. I have two collection agencies on my credit report. One the OC is Comcast Communications. The opening date is 2004. I had Comcast in 1996-2000 and again 2005-07. The second one was definitely paid off but the first is long ago. I have never heard from this collection agency and have no idea what this is from that would open in 2004. I have disputed it but it remains. The second is from a doctor that never charged my insurance. I disputed this bill with the doctor for about a year before it was turned over to collections. The doctor visit was in 2003 and collection started in 2004 but
  18. I received a phone call about a month ago from a collection agency stating they were collecting for Comcast. I said I never received anything in writing from you so please send me a letter before I speak to you on the phone (not that I planned to ever speak to them). I dropped Comcast in 2007 and assumed I might have owed some small amount though I really remembered paying them off. Well nothing. Nothing comes. I pull my credit report and there is a note from the collection agency, just went on this month--AFTER our phone call--about a Comcast bill from 2002. I had Comcast from 1996-2000
  19. Thanks. I don't have any Cap One accounts. Six months ago every one of these accounts was maxed out. I started paying down in large amounts and this is where they stand today. This is what I paid off and the available credit and balances. Citibank 12k line of credit, paid 10k, have 1.8k balance - open account 8k credit card, paid 6.5k, have 1.5k balance - open account 1.5 credit card, paid 1.2k, have $300 balance - open account Chase Paid off 4k of a closed account 2k credit card, paid 1.5, have $500 balance - open account Bank of America Paid off 6k of closed account 11k line of credit,
  20. Thank you. I've been paying them down steadily over 6 months and have been checking every month and they haven't budged. The outstanding balances have budged but not the scores themselves. How can that be? Do scores just magically rise one day?
  21. Yes it's from Also I had one of the car dealerships in my area run one and all 3 had it in the 620/630 range where it's been for 2 years.
  22. My credit score has always taken a hit for high balances to available credit (I have maxed out just about every credit card on a continuing basis). I just got control of the situation in the last few months after being tired of paying 29.99 percent to every single credit card company (and I have about 10 credit cards). In the past six months I've paid down about 50k worth of credit card debt and paid off all closed accounts (usually closed when the CC company notified me of a interest rate change). And I did not take on any new debt. I have always paid on time. On my credit report, I have n
  23. I had a mortgage with CountryWide for $250,000 from 2004 to 2007. I was never late and paid it off when I purchased another home in 2/07. I pulled my credit report and it shows me LATE for 2/07 (the mortage was paid off that month) and the tag line says "Not paying as agreed, account closed." I wrote to Experian (who is the only credit bureau to report this) and explained that it was paid off in full in 2/07 and was never late. They said it came back verified. I've written to CountryWide and have not received an answer. I understand they're not very responsive. Thoughts?
  24. I was late on a payment and Chase jacked the interest up to 29.9 percent up from 13 percent. I've had the card for over 10 years and have never paid above 14 percent and have never been late on a payment. First I called them and asked them nicely to lower it, citing my loyalty etc etc etc. They said they were not authorized to lower it and that was as low as they could go. I was talking to someone at work about it and they said that in New York it was illegal to go over 25 percent. I called Chase and told them that the cap on interest rate in New York is 25 percent. They said they unders