Considering Filing for Chapter 7

[hpmoney505]

The house is only in my name so all of that issue is eliminated. The loan and deed are all in my name luckily.

[hpmoney505]

The mortgage is only in my name as well as the deed.

[Zeiram]

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@hpmoney505 wrote:

The mortgage is only in my name as well as the deed.

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Well, that greatly uncomplicates things. If you don't have much/any equity in the house yet it all comes down to...

Do you think you can go on paying for just the house?

Bankruptcy courts understand that you've got to have a place to live. If you can afford to keep the mortgage then they may just let you strip the credit card debt if you decide to go into Chapter 7. The question is can you afford just the house? If you decide to reaffirm the mortgage then you should be absolutely committed to this thing for the long term because you can only get a bankruptcy discharge once every 8 years, so if you can commit to the mortgage given that, it's something to consider.

If you have to let it all go, you can do that. The good news is you're young and you'll recover from this eventually. Try to use it as a learning experience.

[hpmoney505]

I did talk to my attorney about the house and I do not think I am going to reaffirm it. I do not know how long I will be in this area at this point and having that on me would just make things so much more difficult. 

I am going to use this all as a lesson of what not to do for the future. I made lots of bad credit mistakes and hope that I can just rebuild from here. I was so concerned with my credit going up quick and I thought taking out lots of cards would do that but it ended up just snowballing and it got to a point where I could no longer handle it. 

[compassion101]

So 50k student loans (federal or private?) Is it 100k debt mostly credit cards? Then a mortgage on top of that?

[hpmoney505]

So 35k of the student loans is private and then 15k is federal. 

The mortgage is 60k and all loans and cards are around 40k.

[FicoMike0]

If the mortgage is $60k, what's the house worth?  What are the payments, $500? Where can you live for less than that? If give that another think.

[hpmoney505]

Mortgage is only 6 months old house is worth what I paid. Mortgage is $529 a month. I did end up filing for bankruptcy and I know the house is going to be discharged but I am continuing to make the payments for now. I cannot live anywhere else for that cheap.

[Zeiram]

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@hpmoney505 wrote:

Mortgage is only 6 months old house is worth what I paid. Mortgage is $529 a month. I did end up filing for bankruptcy and I know the house is going to be discharged but I am continuing to make the payments for now. I cannot live anywhere else for that cheap.

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Why wouldn't you just reaffirm the mortgage if it's that cheap. The only place cheaper in this economy is a cardboard box under the L.

Our landlord just raised this broken down hovel to $1150 a month. It's steep. They're robbing us in broad daylight. if you told me where to get a $529 mortgage I'd ask who I had to kill to get that deal.

[compassion101]

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@hpmoney505 wrote:

Mortgage is only 6 months old house is worth what I paid. Mortgage is $529 a month. I did end up filing for bankruptcy and I know the house is going to be discharged but I am continuing to make the payments for now. I cannot live anywhere else for that cheap.

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So you filed BK for the 40k? I mean thats reasonable if it is a burden to you. But doubt they'll consider the 60k in student loans, that's a tough barrier to cross, you basically have to convince them that you will never be able to pay it back in your lifetime (usually through having a disability, etc.)

Reaffrim the house mortgage seems to be the best idea. You're going to need to live somewhere after the BK is discharged. And if instead you are 100% not going to be living there after, then no need to pay it in the meantime, just save that money if you can be allowed a cash exemption. They can't kick you out for non-payment during th BK process. What did your lawyer advise on this? Did you hire a lwyer or at least go for a free consultation?