Show me another »
Advice on Bankruptcy,should i or not?
First,before i even ask for advice let me give you my stand on credit etc.I really don't care about it!lol,here is the problem.I lost my job last year due to downsizing and i have a house in Georgia that i am close to being in foreclosure,like a year behind.I am on unemployment which pays like 300 a week and am looking to get some roommates to help me with my mortgage if i can salvage this house somehow.I have 5k in credit card bills and have a student loan for 10k that is in forbearance.A car that is being financed which is a month late,insurance and owe the I.R.S. four thousand dollars which im making monthly payments on,yes my life is screwed!Someone tell me will a Bankruptcy stop a foreclosure?I need some advice!
Best Answer - Chosen by Voters
Check the sites thoroughly. It’s an excellent site with some wonderful options for you. It will definitely help you. Have a look.
while credit trauma is correct the fact is you cannot service the debt even in a chapter 13 filing and the re-affirmation will not go through with out a job.
The bank will foreclose and the IRS and student loans will not be discharged in any event
I would visit http://diylegalinfo.com/bankruptcy_Links.html They have a lot of good information on bankruptcy questions.
Chapter 13 can stop a foreclosure as past due mortgage payments can be included in the filing. Chapter 13 does not discharge debt. It is basically a court supervised consolidation/repayment plan that your creditors must accept. Student loan debt can also be included in a Chapter 13 filing....Again, it does not discharge the debt. I don't believe that the amount you owe to the IRS can be included in a Chapter 13 filing.
Chapter 13 is only useful if you can afford to pay all this debt back under the new terms of the repayment plan. A bankruptcy attorney can give guidance on what the monthly payment might be. FYI: Chapter 7 is the version of BK that does discharge debts...but it's not very useful in your case as you can't include past due mortgage payments or student loans.
Just a thought: For sure...try to get roommates or renters to help with the mortgage and prevent foreclosure...If this falls through.....letting the house foreclose might be the lesser evil for you. As bad as a foreclosure is...once it's over...it's over..and you can move on and start over. With Chapter 13...the court basically takes control of your finances for 3 - 5 years....It's not a fun process...it can be highly stressful. If your employment picture does not improve, then foreclosure is probably the best option for you...but seek advise from a BK attorney before you make a decision.
"Depending on individual circumstances, if a debtor wishes to keep certain secured property (such as an automobile or home), he or she may decide to “reaffirm” the debt. A reaffirmation is an agreement between the debtor and the creditor that the debtor will remain liable and will pay all or a portion of the money owed, even though the debt would otherwise be discharged in the bankruptcy. In return, the creditor promises that it will not repossess or take back the automobile or other property so long as the debtor continues to pay the debt. Secured creditors may retain some rights to seize property securing an underlying debt even after a discharge is granted.
If the debtor decides to reaffirm a debt, he or she must do so before the discharge is entered. The debtor must sign a written reaffirmation agreement and file it with the court."
That said, a bankruptcy is only going to push the payments you haven't made into a re-payment plan that you have to pay back, so it's not going to help you much. What you need is a loan modification and you are a prime candidate. Contact your mortgage lender immediately and get the process started.
For a complete article that explains bankruptcy, visit http://www.credittrauma.com/bankruptcy-a…
I am bello smith, a legitimate, tested and trusted as well as a reputable money lender. We are a company with financial assistance. We loan funds out to individuals in need of financial assistance, that have a bad credit or in need of money to pay bills, to invest on business. I want to use this medium to inform you that we render reliable beneficiary assistance as I'll be glad to offer you a loan. Loan minimum of $2000 and maximum of 5million with and agreeable interest rate of just 4%
Services Rendered include;
FIRST INFORMATIONS NEEDED ARE:
Name Of Beneficiary:.........
Purpose of the Loan........
Contact Name :Bello Smith
Every Day Macro loan Refinance Institute
Hope to see your response via this mail address, email@example.com