You are here:

Bankruptcy Law/bankruptcy and foreclosure

Advertisement


Question
QUESTION: Hi,

I am writing to gain a better understanding of bankruptcy and if it might be a good option for me (by "good" i mean "least bad"!) I live in NC and bought my townhome in 2006 and looking back, I shouldnt have bought my place bc it was clear I couldnt afford it. And I think it was clear to Wells Fargo and my mortgage broker too. The terms of mortage are terrible.

In 2010, I was laid off from a really good job and it took 2 years of part-time and temp work before I found another FT job...one that pays about 20k less than the one I lost. I have applied for a loan modifcation w my new mort company (Wells Fargo sold it after signing the deal; then the next company sold it 6 weeks later). My mort company told me my mortgage is not HAMP eligible (although it was when it was w Wells Fargo...) and that they only modify to a 7% interest rate.

I have an underwater house, about 40k in student loans, a few small credit cards I stopped paying when unemployed and a car loan. I don't see a way out of this.

I dont understand bankruptcy. Can I file if I have a job? Do I lose everything if i file- house, car etc? Is it better to file bankruptcy or to lose my house in foreclosure? I've heard that you cant get any credit for 7 years after bankruptcy- does that mean when it's time for a new car, I'd have to pay everything out of pocket?

Thanks so much for your help!!
Melissa

ANSWER: Hello Melissa:
I will first answer your questions directly after retyping them here.

dont understand bankruptcy. Can I file if I have a job?

Yes -  Most of my bankruptcy clients have a job that decide to file.    

Do I lose everything if i file- house, car etc?

No - In fact, in almost every consumer bankruptcy, the debtor does not lose anything.    Whether you would lose anything or not, including your house, etc., depends on some facts that you don't state in your question.     

Is it better to file bankruptcy or to lose my house in foreclosure?

To answer that also depends on some facts you don't state in your question.   In your situation bankruptcy is usually better for several reasons, but again, I won't know for sure unless we can talk about this further.



I've heard that you cant get any credit for 7 years after bankruptcy- does that mean when it's time for a new car, I'd have to pay everything out of pocket?

First of all, the bk stays on your credit for ten, not seven years.   However, the idea that you can't buy anything on credit for that time period is simply not true.    For most filing bankruptcy is a good chance to make a new start.


Melissa, I would ask that you call me on the phone to talk about this further.  I will not charge you anything to talk on he phone and you can call me directly at the number listed below.    I can then explain the whole process and explain more on the specific questions your raised.   It is easier for me to talk on the phone than to wear my fingers out typing.


I look forward to hearing from you.



Jack Hall    J.D.
Hall Bankruptcy Services
915  261-3893
jackhallbk@aol.com



---------- FOLLOW-UP ----------

QUESTION: Thank you so much for the offer to help. Would it be ok to call you this evening after work? I don't want to call too late- I could also call tomorrow afternoon. Let me know what works best for you. Again, thank you!

Answer
Hi Melissa:   I am just now reading your follow up message on Saturday the 4th.   You can call me anytime you like.   I gave you my cell phone so you could call me anytime.    As I said before, I will not charge you just to talk on the phone.    Jack Hall


915  261-3893

Bankruptcy Law

All Answers


Answers by Expert:


Ask Experts

Volunteer


Bankruptcy Services

Expertise

Can answer questions about bankruptcy, lawsuits or judgments that have been filed against you. Also can answer questions about tax issues, property that is facing foreclosure, repossession of vehicles, and wage garnishments. 915 261-3893

Experience

Over 30 years experience assisting consumers with lawsuits and bankruptcy matters since graduating from law school.

Publications
Numerous published appellate court opinions; Law review publications; Article on consumer bankruptcy in Black Enterprise magazine; was requested to author a book on consumer bankruptcy by Doubleday Publishers

Education/Credentials
Over twenty years of education including law degree (J.D.); masters and bachelors degrees in political science; author of magazine articles related to consumer bankruptcy; hundreds of hours of continuing education legal education and seminars

Past/Present Clients
Have had well over a thousand bankruptcy clients during the past 30 years and have had many clients in civil lawsuits during the same time period

©2016 About.com. All rights reserved.