We Have Hit “the Wall” Can Anyone Tell Me Which Is Preferable, Turn The House Back To The Bank Or Bankruptcy?
We have scores of credit card payments due to illnesses and still many medical bills, the credit cards have carried us about as far as they are able. We have had advice to turn the house back to the bank , but this still leaves all the bills. Then the option of bankruptcy, not to clear the decks, but to make life more manageable financially. Both my husband and I are unable to work, have only disability benefits at less than half of what he used to earn. Any advice or questions are appreciated.
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February 9th, 2010 at 11:30 pm
Chapter 7 bankruptcy is a BEST option, then you may be able to make your mortgage. Let the other bills go. Save your home!
At this point I don’t think your credit score is a worry.
You need to act fast before you lose your home.
Don’t even deal with debt management companies, they take money that you can pay on your home, most of them are scam artist anyway.
Know that for a fact the creditors CANNOT take your disability income, but they can seize your bank accounts one time.
I fully understand your situation. I too now live on SSDI, about 1/4 of my working salary.
Best of Luck to you!!
February 10th, 2010 at 3:11 am
Well,if you give it back to the bank it won’t be on your credit.But you’re right,it’ll keep the bills right there.Then there is bankruptcy,which will make everything disappear but will stay on your credit for 7 years.If yiu have a back up plan after bankruptcy then go for it,but have you looked into other options like companies that help lower your payments?There are many companies that will help you lower your payments & make alot of bills disappear.However,if you’ve already looked into every option there was,then go for bankruptcy.
February 10th, 2010 at 8:47 am
My aunt was able to keep her home and also get rid of 90% of her unsecured debt with this company http://www.vitaledgefinancial.com/JB8307 they have many options and will give you there attention it worked for her and they are all nice and understanding it would be worth the shot in looking at them i think they have an ebook you can download to help give you information also good luck to you
February 10th, 2010 at 10:23 am
Go to a bankrupcy specilaist. They will be able to show you the benefits of both.
From what you have said it looks like bankrupcy is your best option. You are going to hurt your credit rating either way.
YOu may be able to keep your house (if you are able to make the payements) and loose your unsecured debt while paying back a little.
THe laws are different in every state so go talk to a local specialist
February 10th, 2010 at 3:53 pm
Bankruptcy sounds like your only viable option.
Visit an attorney to verify that though.