BK Questions re: House and Car

[movinonup79]

Hi All!  So I have had a hell of a year.

I had to have surgery, lost my insurance after and now owe almost 20K in medical bills.  Also, I lost my job in December, but found another one (I love it but $10 less an hour).  I just had a couple questions as I think I'm going to have to file because I will never catch up.

I have a co-signer on my car loan...if I reaffirm this will they lower my payment at all?

My House is seriously past due and in an unemployment forbearance.  I know not to file until they try to foreclose on it, but will they lower payments?

Last, HOA fees... can I list my HOA on my BK?

Thanks!

[SoulMaster]

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@movinonup79 wrote:

Hi All!  So I have had a hell of a year.

I had to have surgery, lost my insurance after and now owe almost 20K in medical bills.  Also, I lost my job in December, but found another one (I love it but $10 less an hour).  I just had a couple questions as I think I'm going to have to file because I will never catch up.

I have a co-signer on my car loan...if I reaffirm this will they lower my payment at all?

My House is seriously past due and in an unemployment forbearance.  I know not to file until they try to foreclose on it, but will they lower payments?

Last, HOA fees... can I list my HOA on my BK?

Thanks!

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$20K in medical bills will settle for $4K or less.  If that's your only debt, avoid the BK unless they sue you / garnish.

@Anonymous.  Regardless of reaffirmation, your car loan is going to become 100% the responsibility of the co-signer.  Sell it before the BK (or regardless of the BK) and lose the payment, avoiding the headache at the same time.  Try to find a car you can afford @ $10/hour.

Doubtful.  If your income is $10/hour, they are just going to say you can't afford it.  A BK or BK+Short Sale will buy you time, but that's probably it. (Note: You surrender the house in the BK, then call the bank to do a SS w/o reaffirming.  The right attorney makes this really easy.)

If you're surrendering the house, Yes.  If not, not really.  The HOA fees you include in the BK will attach to your property, which means you'll have to do something with them to move on with your life.  (You may or may not be responsible for HOA fees that accrue after the BK, before the title on your house transfers, there is some contention on this matter).

-SM

[movinonup79]

No I have cc debt as well, quite a bit of it now.  I make more than 10 an hour, just 10 less than my previous position.  I guess I have some big decisions to make as I don't want to lose my house.  Would rather get rid of my car and keep the house!