Should I file for bankruptcy

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ilostmyjob
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Should I file for bankruptcy

Postby ilostmyjob » Sat Oct 25, 2008 1:57 am

I am in serious financial trouble and don't know what the best way would be to go about dealing with it.

I lost my job this summer because the factory packed up and moved to Mexico (I worked in the auto industry) and have been unable to find any work that gives a living wage. I have a modest but nice home I bought in 2007 that is on an adjustable rate mortgage as well as a card I bought in 2006 that I still am making payments on. When I lost my job the unemployment didn't cover all my expenses so I started using my credit cards to make up the difference. I thought I would be able to find a job by now so it wouldn't matter, but I haven't been able to and my unemployment is about to run out. I'm now stuck with a mortgage, a car payment, my credit cards, COBRA insurance and then everyday living expenses. There's no way I can keep going much further by living on debt. Would I be better off filing for bankruptcy? My home value is now less than what I bought it for and since I used my savings for the down payment that leaves me with no equity. If I file for bankruptcy will that cause my credit cards to stop working even before the bankruptcy hearings? If I have to file and I don't have credit cards or anything else to live off of I'm going to end up on the street.


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Cucumber
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Postby Cucumber » Sat Oct 25, 2008 4:26 pm

Bad news: you have to pay back all that money even with bankruptcy. W changed the way bankruptcy works so now you can't wipe out debt in bankruptcy. Instead the judge only changes the payment terms. :mad:

Messed up huh?

I don't know how bankruptcy process works exactly when it comes to notifying everyone but I'm sure the second any creditor found out your credit with them would be frozen.

I would get rid of the car too. Buy a beater for a few hundred bucks. That will save you some money.
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1bootcamp
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Postby 1bootcamp » Sun Oct 26, 2008 4:27 am

Lose the car.

Lose the health insurance for now if you're younger and don't have any major health problems.

You should be able to get favorable terms on the mortgage real soon when they reform that. If you can get by until then I would try.

What are you doing with your time? Get a part time job doing something so you at least have some income going in. I'm not saying it would be a fix but it's better than nothing.

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fffresh
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Postby fffresh » Sun Oct 26, 2008 4:09 pm

How much is your mortgage and how much are your minimum payments on your credit cards?

Ask yourself if there's any possible way to cut back on spending and continue paying the bare minimums on your loans. If there isn't a way to do that, bankruptcy is probably the only solution.

KC95
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Postby KC95 » Sun Oct 26, 2008 6:57 pm

um.... yeah you should file for bankruptcy! you're totally broke why would you even ask a question like that?

file for bankruptcy and get out from that mess.

bikermike
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Postby bikermike » Tue Oct 28, 2008 12:42 pm

I would say go ahead but I don't think bankruptcy can do much now other than change the payment terms. I could be wrong but I don't think they eliminate debt anymore.

I wish you good luck with finding a job there.

ilostmyjob
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Postby ilostmyjob » Tue Nov 18, 2008 6:06 pm

I wanted to thank you all for your replies. I met with a bankruptcy lawyer but it sounded like bankruptcy wouldn't be the most beneficial way to go because of the new laws you mentioned. I've since cut back my spending including getting rid of my car. Now I use a relatives old car they no longer use. I no longer have COBRA insurance which is a big gamble but what can you do right. I'm doing gigs here and there for quick cash but nothing that would amount close to replacing my income.

I will come back here and update this. Thank you for your advice and hopefully I will be able to find some sort of job here soon that will at the very least pay a basic living wage.

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Cucumber
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Postby Cucumber » Wed Nov 19, 2008 1:19 am

Ouch! :( At least you have your finances more under control now.

If you don't have a house tying you down have you thought about moving somewhere for a job?
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JEFF COGA
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Postby JEFF COGA » Wed Dec 03, 2008 6:19 pm

I understand where your coming from... I got stuck with 4 properties during different stages of rehab... the market shifted, I was upside down... couldnt sell had to make 4 mortgage payments... defaulted on all 4... was ready to bankrupt but found a way....

I short saled all 4... changed my business model and now I'm strating to get the wheels spinning. Don't give up hope.
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