What to do about the house,,,,advice needed please..

iVillage Member
Registered: 05-26-2004
What to do about the house,,,,advice needed please..
4
Mon, 10-10-2011 - 10:08am

I know I don't post much in here lately, too many personal issues to contend with.

iVillage Member
Registered: 10-28-2009

I am so sorry that you are going through all this. You are a strong woman and you'll make it through.

I don't know too much about bankruptcy, so first I would suggest you think of all your questions and consult your attorney on all the details.

But, my personal opinion is - If neither one you can afford it, your other choice is to sell. Would there be any proceeds from the sale? Or would you suffer a financial loss? If there are proceeds, would you be required to turn them over to the BK people? I would start there, if there are no proceeds, then I would say include it in the BK filing.

Keep in mind that it may be difficult to rent an apartment with a BK on your credit reoprt, if that is even what your plans include.

Hang in there!

iVillage Member
Registered: 12-31-2010
Work the numbers out with your BK attorney and see if you can afford it. Also think about if you really want it in your new future? What if you found a great new job opportunity or met someone else a few years from now in a new town, the house could be a ball and chain on your ability to make a new life for yourself.

Just think it all through and play with different scenerios in your mind and on a spreadsheet.

-Marie
#Marie
Community Leader
Registered: 08-25-2006
So sorry K. I know how tough it is on all points. Been D twice and filed BK 7 back in the 90's in my early 20's.

I was not a home owner with my first D or BK. But if I am correct that BK 7 elimates all debt that you choose to file on, you have to decide whether or not to include house on BK and wash your hands of the whole thing, or keep the house, and the mortgage, and deal with selling the house as part of your D.

Am I understanding correctly?

I think it depends what is most important to you. Not only now, but in the near future. But first you will have to talk to a professional. I would be curious what the difference would be, if any, on your credit report.

I mean, a Ch. 7 is a Ch. 7, period. What I am not sure about is with such a hard hit, if it really matters how the mortage gets paid. BK or by selling.

Logic says if you can make a profit, then sell. But....can you two afford to keep making the mortage payment until it sells?

Lastly, someone mentioned renting and BK. I know years ago I was told that it was hard while in the middle of BK, but OK after all of the debts were discharged you no longer had any debt.

Good luck, ask a professional, and then you can weigh the financial benefits, and the emotional benefits of either choice.

Hugs...
Serenity
iVillage Member
Registered: 11-14-2008

I'm sorry you are going through this. That is a double whammy.