Planning on filing bankrupcty...need help

[Anonymous]

Me and my wife are way in over our heads... We owe to much out and I really cant take it.. I filed chapter 7 back in 1997 with my wife. these are our debts.. I make like 140k gross , I'm both self employed

I owe five mortgages all together 

Wells Fargo - $783,847 - first mortgage - current

Ocwen Loan - $219,783 - second mortgage - 60 days late 

Citi Mortgage - $67,354 - third mortgage - current

Wells Fargo - $198,621 - rental property - 180+ foreclosure pending (trying to work out modification on both rentals, but if i plan on bankrupcty I would consider surrending

TFCU - $134,835 - rental property - 180 + days late foreclosure pending 

I have two car leases 

2012 Mercedes GL450 - lease 2 months behind - will surrender 

2013 BMW 750i - lease - current

I also owe roughly 200k in personal and business credit cards such as visa, amex, discover and mastercard..... we have a 5 store charge cards maxed and closed roughly $100k

I dont know if I should consider filing or if we should try to make arrange work out plans... My fico is 609.. I have no credit other then lease, amex closed all accounts.... Should I file or not??

[barbaralee]

Curious, but why do you have so many mortgages? Your income does not support you first house, much less the other 4. And yes, in your situation I would have filed yesterday and I would strongly encourage you and your wife to stay away from credit. 

[jamesdwi]

not much choice really, file bankruptcy, live a simple life, start over, buy what you can afford to pay for with cash or a small monthly payment. Re-establish credit ASAP, but only a few small limit cards to rebuild, don't go crazy and learn how to handle living within a budget. Hope for the best, plan for the worst. 

[Anonymous]

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@barbaralee wrote:

Curious, but why do you have so many mortgages? Your income does not support you first house, much less the other 4. And yes, in your situation I would have filed yesterday and I would strongly encourage you and your wife to stay away from credit. 

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thank you, decrease in income I was doing over 200k gross a year ago... 2 mortgages are for rental income and the three are on my primary... Ive been taking from peter to pay paul... Im trying to modify my primary and get rid of rental possibly

[pip3man]

But why do I think OP is possibly trolling?! More than 4 mortgages at the same time, of which one is close to a million... Find it hard to believe this post but that's none of my business tho.

[-Cal-]

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@pip3man wrote:

But why do I think OP is possibly trolling?! More than 4 mortgages at the same time, of which one is close to a million... Find it hard to believe this post but that's none of my business tho.

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If the OP is in a city like mine (Los Angeles) then the mortage amount is very believable, especially with the previous $200k+ gross income. I'm in a high income bracket and can understand exactly how CC debt can get high....well maybe not up to $100k. 

OP -- Looks like you're on the right track with getting loan mods, try to salvage the properties if possible. Credit cards are secondary, try to work out repayment on the low hanging fruit and BK the rest as a last resort. Good luck

[StartingOver10]

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@Anonymous wrote:

Me and my wife are way in over our heads... We owe to much out and I really cant take it.. I filed chapter 7 back in 1997 with my wife. these are our debts.. I make like 140k gross , I'm both self employed

I owe five mortgages all together 

Wells Fargo - $783,847 - first mortgage - current

Ocwen Loan - $219,783 - second mortgage - 60 days late 

Citi Mortgage - $67,354 - third mortgage - current

Wells Fargo - $198,621 - rental property - 180+ foreclosure pending (trying to work out modification on both rentals, but if i plan on bankrupcty I would consider surrending

TFCU - $134,835 - rental property - 180 + days late foreclosure pending 

I have two car leases 

2012 Mercedes GL450 - lease 2 months behind - will surrender 

2013 BMW 750i - lease - current

I also owe roughly 200k in personal and business credit cards such as visa, amex, discover and mastercard..... we have a 5 store charge cards maxed and closed roughly $100k

I dont know if I should consider filing or if we should try to make arrange work out plans... My fico is 609.. I have no credit other then lease, amex closed all accounts.... Should I file or not??

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Tough to know without knowing the value of the assets. You might be able to get this to work out for you with a Ch 13 - retain the first and strip the second and third off the primary.

Do the rentals have a net positive or net negtive income? I would dump the vehicles, keep the real estate depending upon the market values.

[Anonymous]

The rentals are vacant currently because I got served so I trying mod but i think short sale and, yes these mortgages are very old before the mortgage bubble...I obtained them and the rentals are joint with my brother.

[Luftty]

So you have 5 properties? Or you have 3 with 2 houses holding 2 mortgages?

I would let go of the 3/4 million home and keep one of the cheaper ones you got. Maybe the one that's less than 200k, I am sure you can quickly cure that mortgage with payments you withhold from the main house. But that's just my thinking, I would consult with a lawyer.

i would also let go of both cars and get a cheaper one. Credit offers will fly at you from lenders days into the filling. 

Good luck.

[ezdriver]

Based on what you posted, your current income is insufficient to service your debt. Try and keep your primary home and maybe your two leased vehicles and let everthing else go. You may not have enough exemptions to supporting what I suggest above but a bankruptcy attorney will figure it out for you before you make your final decision. Good luck.