Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
more details would be nice, but I agree with the others, sell the rental. It also sounds like your wife never worked, which may be something to think about when shes able again. when you lost your job the first time she should have entered the market. I'm guessing you will not qualify for assistance based on you not stating anything about your wife's job. A part time job might also help. Also consider consolidating your debt maybe that will help.
You have two homes? Why not sell one or both homes and pay off your obligations. I don't know what you bought your homes for, but since this is a crazy buyer's market, I'm sure you can get a pretty penny for those homes.
As far as the kid situation goes, The 4 extra kids lived with us for about 8 months. We were told two weeks originally. It was under what is called a family plan. Its meant to be temporary until the family can get back together, so there is no custody change so we got no money or other help. We got the kinds right after thanksgiving so DHR kind of just dropped them off and said "See you after the holidays". Was a mess.
The new kid is a surprise. My wife and I were told that we couldn't have more children, so it came as a surprise for sure.
The two home situation happened as a result of the down turn in the market several years ago. We were living in a town house while we saved up enough for a down payment on a bigger home. By the time we had enough, the economy tanked and the house was suddenly worth less than we owed.. funny thing is when I bought it about 8 years prior.. I bought at below market then...go figure.. any way. Our current home came available so we decided to rent the town home out until we could sell it... its been 6 years and it still hasn't recovered enough.
So I would like to sell it but if I did it wouldn't help my situation as it would prob cost money to do so.
My wife isn't working BC the cost of Daycare is so high that all her money would just go toward that.
Things will get better somehow.. I continue to rack my brain daily trying to find a way out that doesn't involve BK.
I'm going to talk to a lawyer tomorrow. Maybe he will have some advice. I will prob try and talk with an financial adviser as well before making any final decisions.
Regardless of how I got here I know its my responsibility. Just trying to find a way out.
So, 1) neither house has equity?
Or 2) the rental has no equity, YOUR home does (you've been there about 6 years right?, but you don't want to sell YOUR house?
Also , yes, IF you'd like to post specific numbers about your expenses and budget, we might have more specific suggestions.
Good luck. Please post what the attorney and financial advisor say. I'm curious.
TI'm going to talk to a lawyer tomorrow. Maybe he will have some advice.
Keep in mind that bankruptcy attorneys are not inclined to turn away business. Some are honest and for a modest fee (or none) will counsel you to try other roads. But they can be a case of Maslow's Law - "When your only tool is a hammer, all your problems start to look like nails."
Quote:
I will prob try and talk with an financial adviser as well before making any final decisions.
Here again, make sure you are talking to someone who is experienced in debt problems and their solution. A general financial adviser may not have the knowledge or tools to help someone who isn't trying to maximize their investment and retirement gains.
It seems like a combination of bad luck and bad choices here.
Bad luck:
--People getting sick, raising someone else's kids.
Bad choices
--Having 2 houses and renting the other out. I think this one is the biggest killer for you.
--The new car.
--Having another kid.
I see a pattern here of being too optimistic and too nice/lacking boundaries.
You have to be a tough, no-nonsense type of person to be a landlord, and it really doesn't sound like you have the temperament for that.
Overly optimistic not just with the car, but also buying the new house. Should've stayed in the old one if you were underwater.
Too trusting of the doctor who says you couldn't have more kids. Always have a Plan B.
It just seems like you're the type of person who is a little too trusting and leaves yourself wide open to being used/abused.
Maybe I'm wrong, but that's my impression.
By the way, I think taking in the kids was commendable / admirable. But I think that same quality that allowed you to take in the kids is the same one that gets you in trouble in other ways.
If you don't change the underlying thinking/behavior patterns, bankruptcy won't help you. Most people who declare bankruptcy once will do it twice. That's because the underlying behavior patterns/expectations often don't change.
Went and talk to a BK attorney yesterday. I dont know, may need to talk to another.
But after looking over our budget and what we owe....
He said:
I need to do a chapter 7. He said he get paid more for doing a 13 but it would be better for me to do a 7.
He said I need to give the rental property back to the bank... so foreclosure.. ouch.
He said that Since one of my loans involves two new HVAC units on our main home (ine two years ago, another one year), that the bank may come and take them away?? I dont know if I buy that.. he said that they may take the outside units (condensors?).. seems wierd... said we may have to restructure the debt on that.
He said he thiks he can protect the equity in our current home.. cars etc..
He said he thinks he can even protect our tax return.. I dont know if i am even getting one yet but I asked him about it.
I think I may go talk to a couple of more just to get a better understand of what may or maynot happen. I just feel like in the the end he may not have covered everything... maybe he can. I dont know, but my gut doesnt like this.
Perhaps its because I dont want to face the music.
But a foreclosure and a bankruptcy...ugh. Didn't think it was that bad... *cry*
Went and talk to a BK attorney yesterday. I dont know, may need to talk to another.
But after looking over our budget and what we owe....
He said:
I need to do a chapter 7. He said he get paid more for doing a 13 but it would be better for me to do a 7.
He said I need to give the rental property back to the bank... so foreclosure.. ouch.
He said that Since one of my loans involves two new HVAC units on our main home (ine two years ago, another one year), that the bank may come and take them away?? I dont know if I buy that.. he said that they may take the outside units (condensors?).. seems wierd... said we may have to restructure the debt on that.
He said he thiks he can protect the equity in our current home.. cars etc..
He said he thinks he can even protect our tax return.. I dont know if i am even getting one yet but I asked him about it.
I think I may go talk to a couple of more just to get a better understand of what may or maynot happen. I just feel like in the the end he may not have covered everything... maybe he can. I dont know, but my gut doesnt like this.
Perhaps its because I dont want to face the music.
But a foreclosure and a bankruptcy...ugh. Didn't think it was that bad... *cry*
Not sure I buy the banks taking the HVAC units - I've worked for banks for the last 17 years and I have never heard of such a thing. It benefits them to have those units if they went to sell the rental property in foreclosure.
1) Why can't you give the existing tenant notice, sell the rental property and pay the tenant a bit of the proceeds as reconciliation?
2) You need more income - up to you how to make that happen - 2nd or 3rd job to make up the salary difference, or your spouse goes back to work and you employ family members or someone cheap to take care of your kids. I'm unemployed myself now, and the one mistake that a lot of people make is taking the wrong job too quickly because it is A job. I won't be making that mistake because after getting myself out of $40k of debt, I saved enough for 6 months of emergency savings and put myself in a position with a good employer who gave me a nice severance package after they shut down my department. It's not luck, it's being choosy and patient, which I recognize is tough, especially when you have kids (which we don't).
Please don't trust that what a BK attorney says is gospel. They're like doctors - they get paid to fix problems, so if you show them your information, they're going to find a diagnosis that fits their "get paid to fix problems" mentality. I pulled myself out of $40k in debt when friends and family told me to file Ch 7 - took me about 7 years, and instead of my credit being in the tank for that 7 years, it stayed decent and improved every year as my balance shrunk.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
