We worked out our monthly expenses....in the red. (court, house, balance)

[oz in SC]

Originally Posted by newtoli

Then why would you support the tea parties?

Bankruptcy is not welfare.

Bailouts are in essence government welfare.

Get it yet?

It isn't THAT difficult to grasp.

[newtoli]

Originally Posted by oz in SC

Bankruptcy is not welfare.

Bailouts are in essence government welfare.

Get it yet?

It isn't THAT difficult to grasp.

It appears you did, however, try to receive the Government loan modification.

[oz in SC]

That is what the lenders suggested...so I will give you that.

Funny thing is bankruptcy is a better option in our case.

Basing your life around being 'credit worthy' is foolishness and a game you cannot win.

[skaternum]

Originally Posted by oz in SC

Bankruptcy is not welfare.

I dunno. Someone else covers your debt. Sounds pretty welfare-like to me.

[oz in SC]

Originally Posted by skaternum

I dunno. Someone else covers your debt. Sounds pretty welfare-like to me.

Again,the lenders CHOOSE to not go after the full amount,they could CHOOSE to want ALL of their money.


I wonder,do you feel the same way about short sales?

I also wonder if you have ANY proof that someone else covers our debt beyond your feelings...

[drjones96]

Creditors earn interest off of your debt as time goes on. At some point if someone defaults they can determine if they have done well by having that person as a customer.
How long were they a client?
How much do they owe?
How much interest have they paid in over that time?

If it comes down to it and they have actually made more money off of that client than they are owed it may be in their best interests to just write it off as opposed to pursuing the payment through legal means.

[user_id]

Originally Posted by oz in SC

Yes they will...there is no other choice for our society beyond massive and VERY uncomfortable change...for most people AND businesses and the lenders themselves.

The change is already occurring, there really is no other choice. There is no way to re-inflate the credit bubble.

Originally Posted by oz in SC

Very true,we are doing exactly that,declaring bankruptcy.
Difference is we do not see the loss of 'creditworthiness' as a bad thing.

There is much more than a loss of your creditworthiness. Bankruptcy is not going to make all of your debt go away, rather it will discharge any debt you can't reasonably pay off in 5 years (at times 3). Also, due to your financial mismanaged you're 40 and have nothing.

[oz in SC]

Originally Posted by user_id

The change is already occurring, there really is no other choice. There is no way to re-inflate the credit bubble.

You might want to mention that to those in control...because they seem to be pushing to return us to exactly that.

There is much more than a loss of your creditworthiness. Bankruptcy is not going to make all of your debt go away, rather it will discharge any debt you can't reasonably pay off in 5 years (at times 3). Also, due to your financial mismanaged you're 40 and have nothing.

Actually we will have our second mortgage basically gone along with our credit card debt.
We will also have our one vehicle renegotiated at a much lower payment(a 1/3 of what we pay now) and get to keep our home and our place in NC.

So...we will have poor credit and little debt but still have our property.

[glass_of_merlot]

Originally Posted by oz in SC

We contacted our first mortgage holder as we are behind two months and was told we needed to gather every bill we had and how much we currently make and submit it to them.

After getting most of our bills together we realised we were bringing in less than we pay out...not by much but we didn't include fuel OR food into our bills.

SO I contacted the lender this morning and they will see what can be done but suggested we defer payment on our C/C's in order to pay them....

Kind of odd considering Bank Of America is now our primary mortgage holder and we have C/C's with them...

I am unsure if anything will come of this,it seems all the new plans and programs are VERY narrow in their focus.

Would deferring payment on our C/C's hit our credit score more or less than being behind on our mortgage payments???

It is a hole we helped dig although losing so much income in the last year certainly hasn't helped.

Good for you. I think you are doing the right thing. I wouldn't worry so much about your Credit score. Whats more important is that you have a place to live and can pay for the most important things in life like mortgage, food, electric. Your credit score can improve later on. for right now you and your family is number one.

[user_id]

Originally Posted by oz in SC

You might want to mention that to those in control...because they seem to be pushing to return us to exactly that.

They are not doing this at all.

Originally Posted by oz in SC

Actually we will have our second mortgage basically gone along with our credit card debt.
We will also have our one vehicle renegotiated at a much lower payment(a 1/3 of what we pay now) and get to keep our home and our place in NC.

This is hogwash. The courts generally do not strip second mortgages, if they do the house can't be worth more than your first-mortgage. And even then you still may have to pay part of it.

If you purchased your car less than around 2.5 years ago the court will not do anything. The car goes back or you pay it. If its older than 2.5 years the court may reduce the loan balance to the FMV of the car. Lowering payments by 1/3 is not going to happen.

Its unlikely you'll get all of your credit card debt discharged.

Have you even spoken with an attorney? Regardless, until you go to court the details are just speculation.