Help!!

[Anonymous]

After many many years of excellent credit, I find myself in the most unbelievable situation.  Due to medical, housing repairs and raising my niece and nephew, I find myself  $140,000 in debt.  $40,000 of that is credit card debt and the 3 things I cannot pay anymore ('m current on everything else).  After working a budget I find that I am short every month by $800.00.  I have tried borrowing  I have a lot of equity in my house but failed (after keeping a cc score in the 700's for years I now have one well below 600), I've tried Debt Management but can't do that either because I don't have the funds to make payments.  I've tried finding a second job to bring in some extra money, but that hasn't happened yet.  I have a good full time job, but they've cut out overtime and raises, so that hasn't helped either.   My dilemma now is what to do.  Do I call the three credit card companies and tell them I have no money and let them hound me until such time as I'm able to start making payments (which will probably be a year) or shoot myself (kidding).   I really do need some advice.  I could bankrupt, but because I do have so much equity in the house, I stand the chance of having to lose it and I own it with my sister and I cannot and will not do that to her.    Anybody got any suggestions besides the fact I'm idiot to have gotten in this position in the first place?

[Cleanmachine]

There is hope, so don’t despair.

Please make an appointment with a Bankruptcy Attorney to discuss your current situation.  Homes and one vehicle are protected assets, so there will be no fear of loosing your home.

I am surprise that the credit card issuer will not work with you by providing a lower interest rate and monthly payment.

In your case, I would highly recommend you contact an attorney.

Good luck

[Anonymous]

Thanks for your reply, unfortunately, I did consult a bankruptcy attorney and he's the one who said I'd probably have to sell my house, also, I've talked to my credit card companies and they have very generously either lowered or stopped the interest but that's my problem, even with their help, I can't make the payments.  That's why I'm in such despair. 

[tray]

Sorry to hear about your situation, but I would try to get a second opinion from a different BK attorney

[Cleanmachine]

I did consult a bankruptcy attorney and he's the one who said I'd probably have to sell my house

I am not second guessing your attorney, but I do have some serious reservations as to this statement. 

If I was in your situation, I would confer with another attorney. (second opinion) Something just does not smell right.

The bankruptcy code allows each individual who files bankruptcy to keep basic assets deemed necessary for the debtor's "fresh start" after bankruptcy.  That property is the debtor's "exempt property".

The law looks only to the value of the debtor's share of the equity in an item if it is co owned. 

[Anonymous]

---

@tray wrote:

Sorry to hear about your situation, but I would try to get a second opinion from a different BK attorney

---

Absolutely!!!!!  And I would do so quickly - and without referring to your first meeting with a BK attorney.  Go in fresh.

BTW:  We kept our home while filing and completing a Ch. 13 BK.

[MarineVietVet]

I'm reluctant to say too much about current BK laws because it's been so long since I filed but I know in Texas you can't lose your home in BK because it's considered your "homestead". The only way to lose your house here is by defaulting on payments. Each state may have their own similar protections. It's worth looking into.

From a BK years ago to:
9/09 EX pulled by lender 802
3/10 EQ- 800
4/10 TU -772

You can do the same thing with hard work

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[Anonymous]

Thank you all for your kind remarks and suggestions.  Perhaps I misunderstood the attorney I talked with.  I will consult a new one.  My biggest fear is that I will somehow deprive my sister of her share of the house.  If I can bk and still maintain our home, then I have no problem doing that.  Thanks again, you guys are the best!!

[Anonymous]

Be very sure you have a good attorney and he explains all the options.

I do believe certain assets will not be touched.  I kept my car and even

though my lawyer told me the IRS would not accept my BK they did.

Have you tried the credit debt thing that the government is offering if

you are more than 10,000.00 in credit card debt.

Good luck.

PS:  Did you check the bankruptcy section of this forum?

[Anonymous]

Thanks for the suggestions.  I am now researching bk and will ask for a recommendation for an attorney.  If the government is offering anything, I probably don't qualify!!  Single, no children.