Hi,
My husband's employment industry has tanked over the last four years and we've drained our savings in order to make our mortgage, home equity loan and credit card payments. We are current on everything and have excellent credit despite our struggles, but last month was the end of our savings. The economy has killed us. Despite putting an incredible sum of money down ($180K) on our modest house and getting a full documentation loan, etc. w/ excellent credit -- of course our bank won't even consider lowering our fixed interest rate or modifying our loan in anyway. Our house is worth approximately $250K less than what we purchased (we're in So. Calif.) it for. I guess you didn't need to know all of that, but I'm absolutely ashamed of all of this and have been a very responsible person my entire life. We're not deadbeats by any means and both of us work. But my husband's pay has been cut in half. We own two 10 year old cars outright.
First, I'd like to know if anyone has used an exceptional bankruptcy attorney in the Orange County, CA . And if you've gone through a chapter 7 or 13 and have come out on the other side, I'm interested in hearing from you.
PLEASE keep your judgement to yourself. This is hard enough already.
Thanks so much.
Thank you everyone for your kind words and words of wisdom. This is a hard thing to stomach, but I've come to the conclusion that we can only go up from here. Right? It sounds odd to say, but knowing that so many people are in the same position, after doing all that they could and following all of the rules, it makes me feel a little bit less of a loser. We didn't personally cause the mess that this country is in, but we are a victim of it. Time to stop being a victim. And we're going to take the initiative BEFORE we drain our retirement accounts. I've read of so many others that did drain those retirement 401Ks and IRAs, only to be in the same position afterward. We will not let that happen. Thanks for all your support, it means the world to me, truly.
Sorry I don't have bankruptcy or attorney advice but I just can't bear how hard you are on yourself : ( I know I would be too but it sounds like you have tried to everything right. Let it go now and do what is best for your family and not for the banks. The last couple of years have brought so many families to their knees, financially AND emotionally. Take care of yourself now, OK? Better times are ahead.
don't beat yourself up over this. i would look into dave ramsey's website. he has a lot of tips. also success stories :)
all your details are a bit over my head (which is also why i am taking dave ramsey's financial peace university lol- he says, you can't learn to play guitar unless you have a guitar, same with money, and i've never had much SO!)
what about maybe you or hubby getting a S. job. you don't have car payments and it sounds like your cc's are paid off, so cut those up. the LAST thing you want to do is get into more debt, right? i am no financial advisor but it sounds like you need one. i would talk to people more experienced than most of us on here :) and take heart...it will get better.
Good morning. You don't say where your debt is and how much. We recently filed bankruptcy, after struggling with it and spending much of our savings trying to keep up with it. The CC companies WILL NOT lower interest rates or reduce amount owed until you are late, which being late does affect credit. At first I used one of these debt consolidation companies. The charged my about 2,000 to work with the CC company to reduce the amount. Come to find out, I was able to do it on my own, and did a better job. So if you do have debt with CC, do not use one of those companies that will charge to negotiate a lower amount. The longer you hold off on paying, the less they are willing to take. I owed 20,000, negotiated to 5,000. We too used savings to stay afloat after losing two businesses. Tried our best to pay everything on time. We filed BK last June. Was THE BEST thing I did. I had a hard time making that decision. Credit was always perfect!!! Just circumstances beyond our control as far as losing businesses, major health issues with my 5-year-old. I can give you the attorney's info we used. Most BK attorneys will meet with you, free of charge, to determine if you qualify for BK. DO NOT pay one to evaluated it for you. Should be free!!! You can contact me if you want more info or want to talk more about it. But don't beat yourself up. It happens to good people. There IS life after BK. I never thought I would ever have to file. I was so embarrassed. But glad I made the decision to do it.
It will take the bak anywhere from 1-2 years to foreclose. Maybe you can foreclose on everything but your home. In the next couple weeks there will be a new refinance program out, look into that. I wish you peace & relief, don't beat yourself up.
Try calling http://www.martindale.com/Sharon-Z-Weiss/43871642-lawyer.htm
she works with companies going bankrupt but probably knows someone in the area that can be helpful.
Also, you will be asked this so you might as well do it now to help yourself. Make a budget chart, money in money out, figure out where every penny is going. If you both work and the cars are paid for and you have a fixed mortgage, figure out where the money is being spent. Then prioritize the costs and effects of each choice. Bankruptcy is not a quick fix all. It follows you for the rest of your days (7 years on your credit report, but lingers in your mind and seems to pop up when least wanted). Also there are financial expenses to going bankrupt; can you use that money differently? I'm sorry this is so stressful. It effects everything in your life. One day at a time, you will make it through.
I know it is hard and I know there are lots of negative feeling that you have about yourself. I went through bankruptcy this summer and I still have a rough time with it. First of all, I did not have much so I went through a company that wrote up my papers. The trustee was really rough on me since I did not have an attorney. I got rid of everything. I did a 7. You can do a 7 and not put your home into it. Good luck!!
Hi there,
I just read an article on line about owning a home in which you can't pay for. It basically concluded that you SHOULD NOT drain your accounts, just to pay for a house. They said that you should just let it go and lose the property. (considering you can live in it for up to a year without paying) Draining your savings and retirement accounts is not something they suggest. It's only a house, and you WILL recover from the damage done to your credit.
I hope everything works out for you. Good luck!
Judging from what you said here it doesn't look like you are going to be approved for the debt forgiveness bankruptcy. I can never remember offhand which chapter is which.
Anyway since you are looking at debt restructuring you may want to first look at companies that do that without bankruptcy. It is a little easier on your credit score that way.
If possible, see if you can meet with attorney who will give you all of your options, or possibly a financial advisor who might be able to assist you with programs that might be available to help you refinance or reduce your mortgage. If you do decide to file bankruptcy, a lot of people fare better with a good attorney, especially if you opt for a Chpt. 13. And you don't need to feel bad about taking advantage of the programs offered to you. You have done your best to stay afloat, and those programs were designed to help you.
Hi. Not sure what you've chosen to do, but have heard that bankruptcy is not the only choice you have, in fact, something you should not choose. My husband has recently been involved with a company who helps people keep their homes that are in foreclosure or about to lose their homes. I'm not saying that everything will work out for you or even if you're in this type of situation, but if you would like I could ask my husband if he could possibly let you know what to do or where to go for help. Just a thought.
