[FLTPR]

FOR MANY YEARS, I FROUNDED UPON PEOPLE THAT ABUSED THE AMERICAN SYSTEM AND TOOK THE EASY WAY OUT BY DECLARING CHAPTER 7 OR CHAPTER 13. UNFORTUNATELY, I'M GETTING SLAPPED IN THE FACE WITH THE POSSIBILITIES OF FALLING WITHIN THAT GROUP OF INDIVIDUALS THAT I ALWAY LOOKED DOWN AT. I'M SURE EVERY SITUATION IS DIFFERENT AND THE MORE I RESEARCH AND THE MORE I EDUCATE MYSELF, THE MORE I REALIZE I WAS WRONG TO JUDGE WITHOUT EDUCATING MYSELF. BANKRUPTCY IS NO JOKE AND FROM WHAT I'VE GATHERED, I'VE NOTICED THAT MOST PEOPLE WERE ACTUALLY IN DESPERATE SITUATIONS WHEN THEY DECLARED.
MY SITUATION IS NOT BECAUSE I WAS RECKLESS NOR IS IT INTENDED TO ABUSE THE SYSTEM. I GOT DIVORCED APPROXIMATELY 4 YEARS AGO, AND MY EX-WIFE LEFT ME WITH ALL THE BILLS AND MOVED AWAY AND IN WITH HER SISTER. IN DOING SO, SHE LEFT ME WITH ALL THE BILLS. SHE DIDN'T CARE ABOUT HER CREDIT AND DECIDED THAT IF I WANTED TO SAVE MY CREDIT, I WOULD HAVE TO PAY WHAT WE ACCRUED TOGETHER. BUT THE REGULAR CREDIT CARD BILLS AND THE CAR PAYMENT WASN'T THE BIG PROBLEM. WE HAD PURCHASED TWO INVESTMENT HOMES AND NOW, WE/I''M STUCK WITH TWO MORTGAGES THAT I CAN'T CONTINUE TO PAY. I HAVE SINCE RE-MARRIED AND PURCHASED A HOME WITH MY WIFE. I CAN'T CONTINUE TO WORK AS MUCH AS I USED TO, BECAUSE WORK HAS CUT DOWN OVERTIME AND I'M UNABLE TO FIND TENANTS OR MAKE THE MONTHLY MORTGAGE PAYMENT. MY QUESTION IS THE FOLLOWING: SHOULD I JUST CONTINUE TO PAY MY CREDIT CARDS AND HAVE THE BANK FORECLOSE ON THE TWO HOMES THAT I BOUGHT WITH MY EX-WIFE? OR SHOULD I JUST FILE FOR BANKRUPTCY? I'VE HEARD THAT BANKRUPTCY IS THE LEGAL AND RIGHT THING TO DO. I JUST FEEL BAD NOT PAYING MY CREDIT CARDS, KNOWING I CAN PAY THEM OFF WITHIN THE NEXT 2 YEARS. PLEASE GIVE ME ADVISE OR POINT ME IN THE RIGHT DIRECTION. I CAN'T SLEEP AT NIGHT AND I'M ALLOWING THESE BAD TIMES TO GET THE BEST OF ME. THANK YOU VERY MUCH.

[KoryO]

Have you contacted the Consumer Credit Counseling Services (CCCS)? They have been able to help people out of some ugly situations. They did help a friend of mine avoid bankruptcy and pay off his loans. Best of all, it's either free or very low cost. Check in the phone book, there are offices all over the place. Consumer Credit Counseling Service

You might also want to talk to a bankruptcy attorney to see what they would recommend. Probably not free, but it would let you know what your options are.

Both of those options have to be easier on you than staying up late at night worrying. I hope for the best for you, good luck!

[nanwalt3]

So sorry to hear of your dilema.
If you can't rent or even sell the 2 investment homes, you may be best off to contact the lenders and explain your situation, regarding your divorce, circumstances, etc. I wouldn't mention your credit card debt to them, its not their business, just let them know that you cannot make the pymts anymore. They may try to help you re-cast the loans and bring the pymts down.

You may be able to deed back in lieu of foreclosure, which is going to look a little better on your credit. Still a blackmark, but the lender saves money and time, and it saves you money that they'd just dump on the amount owed.
The previous post to speak to an attorney is very good advice, and that should be your first move before anything.
Check your options before you make any moves, you have to feel you can live with your decisions you're making today.
When you have so much on your mind you don't always make an informed, logical decision, so get some professional advice.
Good luck

[Lilybeans]

If I were you, I would file for bankruptcy. As soon as you file, creditors have to leave you alone. You can still choose to pay the bills if you want. The bad credit will haunt you for 7 years after it's all written off. The bankruptcy will start repairing your credit after a few years.

Don't waste money with consumer counseling services.

Foreclosures will kill you.

[heydade]

Bankruptcy stays on your credit for 10 years. Foreclosure stays for 7 years. A bankruptcy is always worse than a foreclosure and lenders frown upon it much more than a foreclosure. I also agree..don't waste time with consumer counseling services. They are run by such incompetent people and they always seem to let people down in the end when they make mistakes or forget to pay off bills on time.

If I were you I would just foreclose. If your in Florida and you were married at the time you purchased the houses, then she is on the title too. Foreclose and mess up her credit as well ! Bankruptcy just messes yours up....not hers. Hurt here where it COUNTS ! One day she will think "wow...I got out of that one good", turn around and try to buy a house or a car and she will be unpleasently surprised.

Even without the ex-wife issue at hand, I would still foreclose....much easier to recover from than a bankruptcy.


Good luck !

[Wendyb0077]

It sounds like you purchased the investment homes with your previous wife. Is her name still on those properties??? If so bankruptcy can become a problem without her claiming Bankruptcy too. It sounds like you should speak to a good Bankruptcy attorney and get some advice. Life can stink sometimes... good Luck..

[sarasarita]

No bankruptcy it’s not the right thing, bankruptcy stays for life!

On your situation there are many solutions…

* About your credit cards.. always depends in how much you own, if you can make the minimum monthly payments then stick to it doesn’t matter if is going to take you longer… everything is about sacrifices. hold your hand and stop buying unnecessary things and potting then in does credit cars, that goes to your wife too (your suppose to help each other)

* You have 2 investment properties, For this I will recommend to sacrifice 1 only first the one that is most expensive, with hire monthly payments. If you are the only liable on the note, I have 2 solutions (But if you’re ex wife is in the note or on the deed, depending on your divorce arrangements, I’ll recommend an attorney)

If you are in florida you know how the market is right now... if you don’t have any equity in this property there’s the option of a short sale.

1- short sale is the relief of some of you mortgage debt from the lender in order to facilitate a sale, but for a short sale you have to not been able to make the monthly payments, and then wait for the bank to send you a notice of default … then you go to your lender and try to negotiated a short sale with him in order to sale your home at current market value ( to negotiated with the lender you must provide proof of income, any assets, other debts etc. Including a Hardship letter, this has to explain your situation like divorce, no job etc. This is your sad letter, and don’t lie about anything. After all that, when you start getting offers on that house you must know that they are the one to make the final decision and this process can be time consuming for you as the seller and for the buyer.

[About the money that you are “relief” from when you sell your home this can be view for the IRS as a form of income and you will have report this in your income tax, (the bank will give you a 1099) some time banks will order a deficiency judgment for the money own after the sale. (Always make sure they will waive that right when negotiating a short sale with lender first)

2- The other alternative is to go with a deed in lieu of foreclosure (friendly foreclosure) is not a judicial procedure. this is the process to just give up the property to the lender.. and still is going to hurt your credit but not as much.

There is more things involve in a short sale and in a deed in lieu of foreclosure for that a will recommend you to go to a real estate attorney who specializes in this areas and do your own research about it (don’t go with a realtor please)

Before I forget. if you need to be stingy with your money so be stingy! ... Make yard sales, sale the things you don’t need in order to pay some of your credit cards or bills, stop going out, spot paying for HBO or Showtime, cancel your home phone (if you don’t have kids or elderly people living with you) and only used your cell phones, cut the use of air conditioning in your house and the dishwasher, Don’t buy cars, don’t change cars, stop eating out all the time … I’m sorry if this sound too drastic but I guess that your situation is serious.

[FLPL75]

As far as the credit cards what is stated in your divorce decree as to who pays what ?
If you have joint cards and you file BK this will leave the joint debt in just your ex's name, however if in the divorce decree it states that even though it is joint debt you must pay then your ex could take you to small claims court to try and get you to pay which would mean you would then have to amend your BK to include any judgment she might receive.

Here is something a lot of folks aren't aware of, the credit card company doesn't care what the divorce decree says. For example if the judge says you have to pay the debt that is in her name the credit company can not force you again the same with the joint debt. The credit card company will hold both of you responsible not matter what the divorce judge says.

Also a BK stays on your credit report for 10 years and all of your unsecured debt must be included if you file you can not pick and chose to pay some in order to keep the accounts.

[BucFan]

"Always pay the house payments before the credit card" ..Suze Orman

[Bob The Builder]

FLTPR

Sorry to hear of your situation. Yup. Divorce causes a bunch of problems, but things will get better. It might not seem so, but it will. For those who haven't been through one, like you did before your own, please understand that life happens. You could be walking down the street one day and "boom" something changes YOUR life forever.

There was another thread about the Government getting rid of "worthless" people. We can all at some time be looked upon as "worthless" by others. It all depends on perspective.