Bankrupt? tell me all you know about doing it?

[sonew123]

OK not that I like blurting my business out there but...I know this forum has the most experienced, intelligent people I have ever met. My DH and I are contemplating it for sure. We have been drowning forever- background-we seperated over 3 years ago for over a year-I bought a house-we got back together-I rented my house and it does not pay for its own bills-we had another house that was in contract and the people backed out because they couldnt afford it-so we rented that too-again not making nearly enough to cover their expenses-fast forward 2 years-DH get back together and have mega debts to take care of-CC's mortgages-etc...if we claimed bankruptsy can the house we live in be taken? Can the courts make DH and I move out of our existing house ( that has no land and Id have to give up all my pets) that costs alot more monthly too-and make us move into one of our other cheaper houses??? can they do that. The house we have now we have spent alot of $ fixing up-it has 6 acres on a pond and is perfect for everything we need. It is also 4x more of a mortgage payment but we could do it if we didnt have the other houses to deal with-weve tried selling them for over a year but the market sucks-we even had a deal with people that was going to cost us 7000$ just to get out from under the house! Each month we carry the two houses we dont live in it costs us over 1000$ a month that we dont have-we are afraid to even file our taxes for what we owe--can bankruptsy wipe those out too? I dont want anyone to think I just want a free ride-DH and I have always paid out debts and have gone out of our way to help others pay theirs-we never needed the gov for anything-we have paid for everything-we haven't used CC's in almost 2 years-we both quit smoking a month ago to save-pack lunches you name it we are doing it to try anything but we dont see any light at the end of this terrible tunnel-We've been working for almost 2 years to catch up and we just get further behind because something always pops up that costs a fortume-blown engines-new tires-glasses-all Dh medical bills that the ins doesnt cover etc....I want to know specifics before I contact an attorney and spend $ on a consultation fee-fill me in???

 

[Blueggchick]

First of all, I am so sorry you are going through all of this. I am in a similar situation and on the verge of loosing our business. The economy has hurt a lot of us. We are also in a very hard financial situation. Hard!!!

I used to be a Legal Assistant/Office Manager of a local Atty here in LA, so this is what I remember from when we did a few bankrupsies. This is what our clients used to find out:

No, you will not loose your home you are living in if you are able to re-confirm your mortage company. Also, once you file, all creditors are to stop all collections on you immediately. They can not contact you at all! Only your attorney.

No, you can not get out of the back taxes...I wish I could also...but many times you can make arragnements with them. And sometimes a lot of it can be negotiated to a much lower level of what is owed. I am the same boat on this one. But with the business not doing well at all, how do you pay? Not fair!!

The best thing you can do is to talk to a attorney. The consultation is FREE! At least in my state it is. I think since Bankrupsy is Federal, it shoud be the same in your state. And many attorneys will take payment arrangements for your retainer fee which helps. Also, if your income is low enough, court costs can be filed "Pauper", which menas they are waived.

Hope and pray things get better for you. It is so had nowadays to live!

Good luck!!
Dar.

 

[SillyChicken]

I think the laws have changed since my DH had to file when he got divorced. I don't belive they can force you from your home. Some things can be excluced (at least at one time) if you can show you can pay for it. I believe we kept a vehicle and lawntractor that he had in his name during the bankruptsy. But don't quote me.

Have you consulted with a financial advisor? or a bankruptsy attorny? How come your rent isn't high enough to cover your costs?


Sorry you're going through a hard time.

 

[sonew123]

Quote:
I know my DH business's has suffered -hes a contractor and part time real estate agent-those businesses have both gone to pot! Im so sorry about your circumstances too:-(

whats re-confirming to the mortgage compnay mean?

 

[easttxchick]

Do you have homestead laws where you live?
Here in Texas if you file a homestead exemption, your homesteaded residence cannot be taken by creditors(except for the mortgage company of course).
Good luck to you!

 

[Camelot Farms]

And there are different 'Chapters', all with different rules. I would contact a local attorney preferably one who provides a free consultation and get some info from them. Just dont be stunned at how much a bankruptcy costs. =/

Good luck and I am so sorry that you are having to look at this as an option.

((hugs))

 

[Gonzo]

you will want to price lawyers to start. Get a copy of your credit report. Make sure you list EVERYTHING you want to file on. You can still file chapter 7 and keep your home and cars. Good Luck! It sucks, but after its done, you'll feel so much better. Credit problems happens to a lot of people.

 

[Blueggchick]

Quote:
I know my DH business's has suffered -hes a contractor and part time real estate agent-those businesses have both gone to pot! Im so sorry about your circumstances too:-(

whats re-confirming to the mortgage compnay mean?

Re-confirming your mortgage means that the mortgage company agrees to keep your mortgage, and continue on with you. Most do and that way the judge ok's you to keep your home. He rules that the loan is "Reafirrmed".

Construction has been hit hard!! Hopfully it picks back up for you soon. Signs are that it just might soon!!!

We own a tree service. And what is sad is that even if you are lucky enough to get a call, you have so many other tree services bidding on the same job. Awful! They only thing that will save us now is if people smarten up before huricane season. After Katrina, you would think they would learn about those pine trees slicing throgh homes.Its supposed to be a bad year again for the tropics.

 

[Elite Silkies]

I think when your self-employed it changes a bit. Currently going through it now, because we were Self employed and the bottom fell out. She told me that since we were no longer Self-employed and have had regular jobs for the last 9 months, then we were fine to file. Now, what she meant by that, I am not completely sure. I do not think you can file Chapter 7 if your currently Self-employed, but you can file 11 or 13 and restructure your debt.

But, that bad on that is that the Courts distribute your money for you so that they can pay the creditors.

You should be able to keep your current home if it is homesteaded, but if it's not, I am not sure if they would let you keep the most expensive one.

I would definitely get a consultation. Mine was free.

 

[schellie69]

I am sorry you are going though this when DH and I filed if I remember what the lawyer said you can keep your home and cars, most attorney's will meet you the first time at no cost, look in the yellow pages for the attorney's that handle bankruptcy's call around and see what they charge and if they offer a free first meeting, I wish you luck do you have all 3 houses with the same bank for the loans or different ones, I think you could just reaffirm on your home you are living in and let the others go back to the bank, have you tried to up the rent on the other houses to cover the cost of them I am not sure what all the rules and stuff is that, but get with an attorney quickly I know that as soon as we signed the paper work it was like a 2 ton weight had been lifted off of us, we did buy a house after the bankruptcy so it does not ruin you credit forever. I think you can also get the medical bills stuff taken care of in the bankruptcy just not back taxes but their are attorneys that can negotiate a settlement on that also. check around. wishing you all the luck and sending prayers your way.