@drew707 wrote:I've hit rock bottom, hear is my story. I own a home owe approx on 138,000 on mortgage. Current value approx 200,000 so I do have equity.
I cannot take out a home equity loan since my credit is now messed up and debt to income ration is too high.
I owe approx 60,000 in total debt. Mostly credit and store cards. There is no way I can keep up with my payments and mortgage at the rate i am going.
Collection calls are starting to come in, can't sleep, stressing over bills, feel so dumb i put myself in this position..
I have spoken to a bankruptcy lawyer and never thought i would be in this position. I do not want to lose my home. They said i can exempt 75,000 in equity in my home, per California homestead.
Been doing a lot of reasearching and sounds true, also i asked then should i reaffirm my home. Been reading most attorneys say no. If i can get my unsecure debt erased then i can afford my mortgage payments. I feel like i should reaffirm my home so i will have no worries about the bank taking it away. They say as long as you are current then they won't do that. But if I have large equity in it years from now why wouldn't they? I'd rather have the piece of mind knowing that my loan is secure like it was before bankruptcy as long as i am current.
Another question is after bankruptcy will i ever be able to get the same credit cards 10 years from now lets say from the old cards that i bankrupted? I know AMEX will not let you unless you pay them back. I do not want credit in my future since i know i cannot be trusted with it. poor money management.
Anyone have any advice for me? Please no advice like pay my bills, but someone that may have been in the same situation. Any regrets about bankruptcy? Looks like i will be going in that direction. Also worried about job employment if i file. Can i lose my current job? Not be able to get another one? I would in an industry where credit checks are a must, and they always ask on application if i ever filed bankruptcy.
I do not want to file but there is no way i can survive this way. It would take me at least 5-6 years to pay this all back with no sidetracks from work or income. Maybe even more.
Couple of things. Do better understand your situation. What is your income, your total unsecured and secured debt, are you married?
Regarding your other questions, since you are considering a Chapter 7 (it sounds like that to me), the general wisdom on this is NOT to reaffirm your mortgage. The simple reasoning is you have a chance to get a clean slate and zero debt, you take it! What if you can no longer afford your house in the future? Then you simply walk away clean. Generally speaking banks will not foreclose on a home as long as you continue to pay your mortgage in a "pay and stay" situation. Banks are not in the business of real estate and home ownership, they have no interest in coming after you for the equity in your home. Besides they are only entitled to recover their security anyway do just relax and remove those thoughts from your mind.
Yes you can rebuild credit and NO you don't have to wait ten years. There are several threads already dedicated to that topic and I wont't elaborate much. Per your job, in most cases you can't be fired for filing BK and employers can't use this in considering you for jobs. There a few exceptions, with private employers but there is no 100% chance that it will affect you. Your lawyer can answer most of these questions.
Starting Score: 501