Your own personal SHTF

I didn't read all the replies, and I can't address all the issues, but:

1. Since the thought of BK has crossed your mind, you should go talk to a couple of BK attorneys, explain the situation and that you feel BK may be on the horizon, and see what they tell you. Most BK attorneys have an initial free consultation, so make some appointments, appear to be a little more confused about the whole thing, and get some advice. Also look up your state law regarding BK. BK is a federal law and is done in the federal courts, but each state has their own laws and rules about it. Don't take any advice about BK unless it is someone who has been through a BK in YOUR state under the new law or a BK attorney.

2. It is possible your health may not improve when you get to NM. It may be that you have reached a tipping point and what you have know may improve some but you may never get back to where you where. I hate to say that but I am dealing with autoimmune disorders and I reached that point a few years ago. At that time, I finally threw in the towel and applied for SSDI in 02/06. I just this month received my judge's decision (after the two expected denials at the state office levels) which was favorable so now I have my backpay and a monthly income again. It is an awful process to go through, but if you have worked and are no longer able to do so, you should consider applying. By what your doctor said, it sounds likely that he would support you claim for disability. My case was decided on the record because I think it might have been as long as another year before a judge was assigned to me; however, when they started that bailout crap, I wrote, e-mailed, and called my Fed senator and rep several times, and in each communication with them in addition to expressing my complete and utter opposition to the bailout i told them if they were so anxious to bail out people then they could bail me out and all the other people who were in my shoes waiting for an SSDI decision, etc, etc. I think it worked.

Like most of us, you are not getting any younger, and your health issues may be getting worse. Your breathing/lung issues are no doubt putting a strain on your heart. Do what you need to do to preserve your health as much as possible.

Another thing about the BK, many people who have continued to work, paid their bills after BK, and aggressively worked on a credit rebuilding/repair program often have their credit rating back within two to three years.

I know everybody else has covered a lot of issues, but I just wanted to point these two things out to you. Take care and keep us updated with your decisions.

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"You know, life is good." -- Paul Jones 1963-2008

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Ramblin Rose, is there any reason why you cannot list the house for sale tomorrow?

Well, I have gone bankrupt and have foreclosed on a house before. I survived.

First...no one will talk to you while you are current on payments. You cannot say "I'm going to stop making payments unless....". You have to stop making the payments first. Usually for at least 60 days. It's like you have to be willing to take the hit on your credit to be taken seriously.

Being afraid of losing your job, is not exactly the same thing as actually losing it. Been there, done that. I'll take the fear any day of the week over the actuality.

Second, renting your house may not be a good idea. I had to move, couldn't sell my house, so I rented it. My mortgage was $200 more than the rent, but I could make up the difference so I did. For over two years. Then my taxes were reassessed and my mortgage went up six hundred dollars. I couldn't cover a loss of $800/month, so I went to talk to the mortgage company (after I quit paying for over 60 days). They would not work out anything with me because I had rented the house for over a year. They told me that I should have let it foreclose when I left, rather than renting it. They would not negotiate a short sale (even when I had an offer on the table), nor let me do a deed in leau of foreclosure. I had to go straight foreclosure BECAUSE I rented the house in an attempt to pay the stupid mortgage!

I never got offers of new credit after filing for bankruptcy. Not a one. And the BK stayed on my credit for TEN years, not seven.

You can always get a loan. You may not like the terms of that loan, but you can get one. The last time I thought of getting a home mortgage, they were going to nail me for about 5% more in interest and require 20% down. The first car I bought after my bankruptcy was an extra 10% interest and again with a downpayment. Credit cards are always available as secured cards, or with ridiculous fees and interest. This does not "free up cash".

It is not as easy as you think to step back into credit. If you have a lifestyle that runs on credit (and it sounds like yours does), you might want to think hard about this decision. What business are you and your husband in? Something that they will check your credit for? Also, some of the things that have been offered as advice here would be considered BK Fraud to the courts. Go see a lawyer or do some research.

As far as what's right or wrong...you have to live with it, not us, but BK and foreclosure are not an easy way out of a bad situation. There are consequences to be paid either way.

Jena

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...to be a rock and not to roll...

Whattahuzzee- lol, LOVE the name! Lord, I hope not. The thought has crossed my mind that I may be past the point of no return, so to speak. If I am, and NM won't make me better, then maybe it may slow the progression. I have to take that chance.
Because I make myself work a full day (napping at lunchtime as needed- it's AMAZING how much just breathing whips your rear!) and make over x amount of money a week, I do not qualify to apply. As I continue to worsen, who knows. I tell ya (and i'm sure you know from experience) it's a horrible feeling to LOOK okay on the outside and be so bad on the inside. I wonder what all those people who sit and wait for me to cross the parking lot in front of their cars think when they see me slowly walking along? How lazy I am because I don't walk faster?

Terri- we still have some projects underway- we tore out a not to code and horrifically malfunctioning bathroom (the pipe into the septic sat almost a foot BELOW the septic tank- helllllllo~) and have not yet completed the new *closet* in it's place. That and some painting and stuff and it could be listable. Not completed the way we intended, but done enough.

Jena, Thanks for posting. Unfortunately the loss of his job is a given. The two new companies who split the company take over on January first. So the pay cut is effective that date. How much of a cut depends on the other offer that he was to be extended by the other company today. So the decrease in pay is there, the question is- is it 30 G or 20-25G?
Wow. You tried to do the right thing by not allowing the house to hit forclosure AND had an offer on the table? Gee golly, I can't imagine WHY lending institutions are having problems, can you?

We filed Bankruptcy many years ago. As a newly married couple, a local millionaire who had eaten at a restaurant we both worked at made us a deal. He provide the location and equipment, we provide the labor and knowledge and we split the profits. We did well, monthly our profits increased- we were even sponsoring a local kids' sports team. Then the millionaire heard that a chain restaurant was looking in the area and stopped by our place. He told us he changed his mind and we'd stop splitting profits and start paying rent, at the tune of 2800.00 a month AND we had to go retro and pay for all the months we'd been open. We were over a barrel and he knew it. So we silently closed down and went to work for much, much less than we made before or while we ran our own place. We had to file and chose the option that you repay-forget what it is now. We paid on it for four years and then our son was born prematurely. The trustee was unwilling to renegotiate our contract and we had to convert. That's when we discovered, like you did, trying to make things right had made them even wronger than before. It took ten years to get our credit cleaned back up. That was a hard blow, hence my hesitation to file again. I'd much rather keep our credit in good standing, but I don't know of a way to do so with this income.

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" It's better to ride even if you get thrown, than to wind up just wishin' ya had."

Chris Ledoux

Wow.

To start with, talk to a LAWYER. He might be able to help. Just because somebody says "We will do this" does not mean you HAVE to do it. There might be options they would really rather you did not know about!!!!!!!!!!!!!!!!!