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the time has come.... :( Help Please!

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TanterBeans
New Contributor

the time has come.... :( Help Please!

...to face reality. This past year has sucked all the life out of us.  It has simply went from the best year of our life to the worst year of our life.  

 

Trying to weigh our options right now and accept that we have to file bankrutpcy.  Researching Chapter 7 vs. chapter 13 right now, or if we should just try to salvage our situation and beg & plead with our creditors.  

 

Backstory:

 

Married with 6 children and trying to figure this out!  Any advice would be so much appreciated!! We went from making very little a year to a substantial amount.  It ended quickly.  We have no savings and no retirement left.  

 

August 2016

 

Living in Pennsylvania.  We bought our dream home.  We had to put around $20k down for closing costs.  We had about 30k in our savings.  It went from 30k to about 10k. We were able to use a VA loan because my husband was military.  Purchased house for $450k in August of 2015.  Owe $440k.  Mortgage payments are $2600/mo.  Probably still appraises around $450k right now.  Before we bought our house we had been renting for about $3000k a month (sadly we were stuck in a very HCOL).  We were thrilled that we were actually saving money every month by buying.  

 

October 2015

 

Husband had been with the same employer for almost 7 years and making around $250k a year.  We never in a million years thought he would lose his job.  He did.  We literally bought our house in August and he was let go when his company did a reorganization in October.  2 months later.  This begins the downward spiral of events. 

 

November 2015

 

Husband starts working for a new company.  Still living in Pennsylvania.  He takes a 50% paycut.  He went from making $250k a year to $125k a year.  There was a promise of a buy-in and/or substanial raise within 6 months time.  We decide to tough it out for 6 months and make a pact that we will just find a way to do it.  We felt blessed that his salary was still a really good amount and we should be lucky.  

 

February 2016

 

We are completley blindsided.  My husband walked into work to find out that the owner sold the company. There was a meeting and they were told the new owners would be taking over within two weeks.  Private "interviews" were done and you would find out in two weeks if you stayed or lost your job.  The new owners were at least upfront with my husband and told him that in two weeks, he would no longer have a job.  They were bringing someone in from their own team.  

 

Panic arises.  We can't find a job anywhere in the city we live in without having to take an even bigger paycut (now going from $250k to 125k to maybe 75k).  

 

We start looking at jobs out of state in hopes that maybe we can save our credit, our bills, etc.  At this point we still have managed to keep everything paid on time with out any lates but the rest of our savings, $10k is gone.  We have zero.  We decide to take out two personal loans.  They total about $20k.  We use them to keep afloat and to help fund our move out of state to a better payiing job.  

 

end of February 2016

 

My husband finds a job in Texas that pays about $150k (so they promised - most of the job was based on commission).  We think that this is the only way to save everything we own.  He leaves in February.  The kids and I join him in March.  We had to leave our dream house, the kids schools, our family, everything we know....

 

March 2016

 

We are living in Texas in our tiny ittle camper with all the kids.  We had bought a camper the year before as a summer fun thing for our family.   We had it towed to Texas and start lliving in it full-time because we couldn't afford to rent a house and keep up on our mortage in Pennsylvania.  We put our house up on the market to rent (we think that renting will help us as opposed to selling and at this point the thought of losing our house already was devastating - didn't know when we would ever be able to buy a new house).  

 

June 2016

 

We can no longer pay our bills.  My husband's job is NOT paying what they promised.  They pretty much high-balled what his commission would be and he is making about $100k.  Not enough to pay our bills and everything.  Remember those personals loans we took out on top of everything?  we are paying on them now and everything pushed us over the edge.  We simply stop paying on things except our mortgage and vehicle payments.  

 

Good news was that this month we finally rented out our house!  For a profit too which helped.  Mortgage payment is $2600 and rent collecting is $3100.  Profiting $400 a month.  It came too late though.  We are already in such a bad financial situation.  

 

August 2016

 

We decide that we cant keep living in a tiny camper anyone with all of us (as much as a beautiful bonding experience it was - living with 3 teenagers and little ones in 300 square feet with a toilet that backs up sewer and having to walk to the outhouse for showers was the hardest thing I've ever had to do in my life - but incredilby humbling).  The money at his job is just not as promised and we are losing everything.  By now we have had family sell every piece of furniture we own that was in our house back in Pennsylvania.  We have nothing but our personal belongings.  

 

Husband finds job in New Jersey making almost $150k. We literally jump on it. Back on the North East coast and closer to family.  At this point, I need family.  I need support.  Spirits are down and we are feeling very overwhelmed.  

 

Moving costs are pretty high.  We leave camper in a camper storage unit in Texas and find an apartment to rent in NJ (which feels like a mansion after living in that camper).  

 

September 2016

 

We haven't paid credit cards, loans, or medical bills (our littlest has Down Syndrome and our insurance never covered all of our high medical needs) since June.  We are just now getting notice of all our credit cards being closed and charging off.  

 

We are two months behind on our mortgage and car payments.  We are trying to get them caught up in the next couple months though.  Trying our best.  We want to keep our house.  We have dreams of moving back to it one day.  I can't let go of it yet.  I just can't.  We want so badly to find a job back home one day and move back.  We never wanted it to be a rental property...it's our home.  Smiley Sad

 

Today

 

Husband is making about $150k a year.  We are all living in NJ but spent the last 6 months prior in Texas, and before that was pernamently living in PA where we bough our house.  

 

We want to keep our house and all of our vehicles.

 

 

Debts past due

35k in credit cards

30k in personal loans (some of them were old from furniture that we bought before we bought the house)

15k camper loan

10k medical bills

8k IRS debt (from 2015)

 

Also have 30k in student loan debt and miscellaneous utiltily bills that got charged off from the house in PA - 1k electric bill, etc.  

 

Please help.....any advice is so very much appreciated!!!!

 

From everything that I'm reading, a Chapter 13 is looking like the way to go???  Also, because we moved around from different states - does this mean we would file with the original state of PA?

 

THANK YOU!!!!!

 

 

 

 

Message 1 of 3
2 REPLIES 2
Pway
Valued Contributor

Re: the time has come.... :( Help Please!

I would suggest you and your husband go and meet with a reputable bk attorney in your area.  From the looks of things and calculations, you could qualify for a chapter 7.  I am not an attorney.  You would file in the state you are currently living in.

 

Your attorney will give you advice as to what to do.  Whether to keep or give up the house and etc.

Thank you for the wealth of knowledge I have learned from these forums. I am logging off as of November 9, 2022. I wish everyone great success.
Message 2 of 3
Anonymous
Not applicable

Re: the time has come.... :( Help Please!

Thank you for sharing your story.....I literally want to hug you right now. It's not pity, but I can relate somewhat to what youre going through. It is hard. I commend your strength. 

 

Ok....go see a BK attorney asap! I personally filed ch13 so I could keep my house. (I was behind on my mortgage and the modification was not approved in time).

Looking back, I honestly don't remember discussing ch7 with my attorney. Anyway, I don't know the ins and outs of ch7 as far as if you would be able to keep your home AND have an apartment. 

 

If you are 2 months behind on your mortgage, you don't have a lot of time. Also with your other outstanding debt, you could possibly face garnishments etc which would only make matters worse. 

 

Go see an attorney to discuss your options. 

 

Please keep us posted! 

Message 3 of 3
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