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Bankrupcy and foreclosure


luna
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This is my current situation and I appreciate any advice.

After medical bills and c.c. debt I have over $15,000 in debt and my ARM is getting ready to adjust on my mortgage in a few months again. What can I say -- the debt was unplanned mostly and Rock Financial told me that my adjustable would be "slight" and not more than $100 if it did adjust. What a crock.... Anyhow I have not been able to sell it through a realtor and while the next adjustment may not finish me off completely I'm afraid it will be a slow drain and then it'll kill me off. I'm not going to be able to pay down my debt AND deal with the housing problem.

I could afford to walk away from my house and honor my debts. I'd rather not claim bancrupcy -- but what other way is there to get out of this house? Renting it out is not an option and the way the market is -- while looking into a short sale I'm aware selling the house is going to prove downright impossible even at a "bargain" price.

What events will a bank accept deed in lieu of forclosure? There is no j ob loss but the debts have snowballed. TIA!

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After doing A LOT of homework the only solution I can see it do file Ch 13 and let the house go into foreclosure. That way I'm done with the house and can move on...literally. I'll get a repayment plan for the c.c.'s be able to keep my car.

Does anyone see a problem with this? I'm going to be meeting with a BK lawyer after my dh and I hash out the pro's VS cons. I think this is my out to a bad housing market in a city thats getting worse, a house mortgage that is going to keep adjusting and expensive repairs that will surely finish me off.

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just because you both have jobs is meaningless. First of, you need to determine if your income is above or below the median for your statr and then work through the expense and income schedules to see if you have any dispsoable income.

Talk with a few bk lawyers and get all of your options explained.

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Thank you so much LadynRed -- I would have no clue where to search for the anti-def law!

Actually I'm hoping that I alone can do a BK == everything is in my name and not my dhs. So both cars, the house and the cc debt. I'm not certain I'll qualify for the 7 -- we have 2 cars -- 2001 & 2003 (doesn't sound THAT new do they?? ) I got a lawyer card from a friend who's doing a BK7 and I'll be calling to make that appt now.

I gather the most important thing is to keep everything up to date til I get all my info and then file. Off to read some more!

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But why did the BK atty today tell me that the mortgage co. can't come after me and sue me for just doing foreclosure without BK? Should I call around to a few more atty's? This conflicting info can be devastating if I make the wrong choice of course.

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