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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: Bankruptcy, Foreclosure, High debt on house.... Posted by NB on January 28, 2002 at 10:01 AM In Reply to: Bankruptcy, Foreclosure, High debt on house.... posted by NB on January 27, 2002 at 10:19 AM : We have had some financial difficulty and are working on paperwork to file chapter 7 bankruptcy. Even with our regular debts discharged we won't be able to afford our house payments anymore. We have a first mortgage for the appraised value and a second for and extra 25% above the value of the house. Do we include the house in the bankruptcy and if we do will we still owe on any deficiencies since it went through ch 7 bankruptcy or not? : Can we stay in the house until the bankruptcy is over, to save up some money to move? OR should we move out ASAP and not make payments after the move? : Also, how hard is it to find a place to rent with a bankruptcy and possible foreclosure on the credit report? If we move before the foreclosure and bankruptcy then it won't be on our credit report yet but we will have bad credit anyway for not making credit card payments. Should we wait a little and save up some money but move before the bankruptcy is finalized? Or does it go on your credit report as soon as you have filed? We live in Washington state. Any help or advice is GREATLY appreciated. We are at the stage where we do have an attorney picked out. The attorney has sent us an agreement to sign along with a request for a Money order to retain him as well as Bankruptcy forms to fill out. We just got the money order over the weekend but have not sent it in yet and need to finish filling out the documents he sent us. That is where we are currently at. My plan was to get as much info from those who have been there, done that, know about that and also to call the attorney and ask questions. As far as moving out right away, we can't do it immediately as we have no money. We would have to wait a little bit without paying the mortgage. The question I have is, do we wait as long as we can and put some money away to help us transition or do we move just as soon as we have enough for 1st last and any deposits? When does the bankruptcy show on the credit report? When you file or when you get a discharge letter or after the creditors meeting? Same with any abandonment or foreclosure? All this is so new to me. We used to have great credit. I don't believe a short sale would work with a second on the house. I looked at other posts on the board about short sales and as I understand it, you would have to have both the lender for the fist mortgage and the lender for the second mortgage agree to it. There would be no reason for the lender with the second to agree to it. They would lose out. We have looked into debt negotiation, credit counseling, lower payments, other bankruptcy chapters it seems none of them would work for us. There just is not enough money every month to work with. I realize any replies are not legal advice. I just want to hear from those who have experience or know others who have been there done that. For me, the more knowledge the better. I have absolutely no experience with attorneys. I have read some about the "Bankruptcy Mill" that seems to exist. I know an attorney is supposed to "be on your side" and help you make the best choices possible based upon the law. I just don't know how accurate the reality is. From what I have read, there is a lot of disappointment and bitterness out there from folks who have not gotten the representation they found out later that they should have gotten. I'm sorry if this offends some but as I said, I want as much information as I can get and from different sources, not just one. Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : We have had some financial difficulty and are working on paperwork to file chapter 7 bankruptcy. Even with our regular debts discharged we won't be able to afford our house payments anymore. We have a first mortgage for the appraised value and a second for and extra 25% above the value of the house. Do we include the house in the bankruptcy and if we do will we still owe on any deficiencies since it went through ch 7 bankruptcy or not? : : Can we stay in the house until the bankruptcy is over, to save up some money to move? OR should we move out ASAP and not make payments after the move? : : Also, how hard is it to find a place to rent with a bankruptcy and possible foreclosure on the credit report? If we move before the foreclosure and bankruptcy then it won't be on our credit report yet but we will have bad credit anyway for not making credit card payments. Should we wait a little and save up some money but move before the bankruptcy is finalized? Or does it go on your credit report as soon as you have filed? We live in Washington state. Any help or advice is GREATLY appreciated. : : We are at the stage where we do have an attorney picked out. The attorney has sent us an agreement to sign along with a request for a Money order to retain him as well as Bankruptcy forms to fill out. We just got the money order over the weekend but have not sent it in yet and need to finish filling out the documents he sent us. That is where we are currently at. : My plan was to get as much info from those who have been there, done that, know about that and also to call the attorney and ask questions. : As far as moving out right away, we can't do it immediately as we have no money. We would have to wait a little bit without paying the mortgage. The question I have is, do we wait as long as we can and put some money away to help us transition or do we move just as soon as we have enough for 1st last and any deposits? When does the bankruptcy show on the credit report? When you file or when you get a discharge letter or after the creditors meeting? Same with any abandonment or foreclosure? All this is so new to me. We used to have great credit. : I don't believe a short sale would work with a second on the house. I looked at other posts on the board about short sales and as I understand it, you would have to have both the lender for the fist mortgage and the lender for the second mortgage agree to it. There would be no reason for the lender with the second to agree to it. They would lose out. : We have looked into debt negotiation, credit counseling, lower payments, other bankruptcy chapters it seems none of them would work for us. There just is not enough money every month to work with. I realize any replies are not legal advice. I just want to hear from those who have experience or know others who have been there done that. For me, the more knowledge the better. I have absolutely no experience with attorneys. I have read some about the "Bankruptcy Mill" that seems to exist. I know an attorney is supposed to "be on your side" and help you make the best choices possible based upon the law. I just don't know how accurate the reality is. From what I have read, there is a lot of disappointment and bitterness out there from folks who have not gotten the representation they found out later that they should have gotten. I'm sorry if this offends some but as I said, I want as much information as I can get and from different sources, not just one. Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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