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Question
I had a house foreclosed on me 6 months ago. Now the second mortgage is is in collections and I received a summons for the $32,000 plus other fees and interest. I also have about $15,000 in unsecured debt that is in three different collection agencies. Mostly credit cards used to fix up the house. I tried to get the help of a debt consolidation service but they couldn't help with the mortgage.
I'm not sure what to do. I am very seriously considering bankruptcy. The other question is that I have a $15,000 car loan about to be payed off this June. I am wondering how that would be affected in bankruptcy. I believe I make just below the median income, but it is close.
I just have no idea what to do.
Thanks,
William
If the house has been sold through the foreclosure action and the creditor is attempting to sue you tthen there may be few options other than making a payment arrangement. Bankruptcy may be necessary. You can reaffirm on the car but first you must qualify for the chapter7. If not then a chapter 13 may be necessary which will allow you to keep the car and pay minimal payments to other creditors.
I recommend you speak to an experienced bk attorney, maybe two of them, then decide whether to file or not. Anytime your paycheck, home or livelihood is at risk bk may be necessary. Seek legal counsel then decide.
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Answers by Expert:
Michael Brotherton
Expertise
Consumer/Debtor Rights Advocate. Mike Brotherton is a negotiator with over 30 years experience in consumer lending and collections. Mike has 30 years in the credit and collections industry as a former loan officer, debt collector and manager of two finance companies over several years. We are well versed in Loss Mitigation practices and the legal collection process. We have helped literally thousands of people over many years overcome serious financial problems such as foreclosure, creditor lawsuits and abuse by debt collectors. For more information about resolving your "financial emergency" visit www.financialemergency.com. We actively promote Fair Debt Collection Practices and other consumer protection laws. We teach DEBTOR RIGHTS and enforcement of those rights. The more informed you are of your rights and the credit collections practices of creditors the more peace you can have dealing with your FINANCIAL EMERGENCY. Most financial problems are fairly common and as such have some very common solutions. The key is understanding your rights in the collection process and how to enforce them if need be. Primary business- Debtor Rights Advocacy and Debt Mitigation relating to foreclosure, creditor lawsuits, and other serious financial problems. www.financialemergency.com (copy and paste in browser).
Experience
28 years in financial services industry as a loan officer and debt collctor. Developed bankruptcy and loss prevention manual for large finance company for manager training. 15 years as a debt counselor and consumer advocate.
Education/Credentials
Veterans sponsored OJT Manager Candidate Scool for AVCO Financial Services, Keystones to Management for ITT Financial Services, Certified Finance Management for Associates Financial Services.
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