| Working toward a divorce, considering bankruptcy and wonderi |
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brokeandseparated
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Cash: $ 0.45
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Joined: 18 Aug 2014
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| Working toward a divorce, considering bankruptcy and wonderi |
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So, here's my situation. I'm 35, living in Maine with one 11 year old child, and I've been separated from my wife of 13 years since January. She moved into an apartment, and I stayed in the house. In the months since, I've fallen behind on everything. Mortgage, car payments, bills, utilities. My job doesn't pay well, and frankly I can't keep up on just my income. I'm currently three months behind on the mortgage, and between that and the utilities, there's basically no way I can catch up. I've just about caught up on the car.
My wife wants to file for a joint bankruptcy before we finalize the divorce. She's drowning in medical debt, and wants to be rid of the house and get out from under the various accounts that have gone into collections. I'm strongly considering this, as I really don't want to keep the house. I don't like the house, I don't like the location, I really would rather just be rid of it. Selling is maybe an option, but the place is in need of a number of repairs I can't afford, and over half the houses on my block are for sale. Some have been sitting with those signs for over a year. I have a girlfriend downstate I want to move in with, and I'd rather not wait a year trying to keep up on payments while attempting to sell the place.
The downside, obviously, is that I'd then have a bankruptcy. As far as credit goes, it's already completely shot at this point. It was fantastic when we bought the house a couple years back, but over the last few months it's gone right to hell. So bankruptcy won't really make it any worse than it already is, but I imagine it will take longer to recover than if I sold the house and caught up on the bills somehow.
So I'm really wondering what I should do, and I've got some questions:
- Would allowing the house to be foreclosed on be better/worse than bankruptcy?
- My wife was told by a coworker that if we filed for bankruptcy, we could keep one of our cars, but would have to give up the other. Is that accurate?
- If we file on the house, what exactly happens? Do I have to get all my stuff out right away?
- If we get divorced first, then I file for bankruptcy on my own, how does that work with her still owning half the house? Can I keep my car in that scenario?
The whole situation is just a big mess, and I'm so confused about what to do...
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Mon Aug 18, 2014 1:41 pm |
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littleroc02us
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One important fact you didn't mention about the house, that would help me give you advice. How much do you think the house is worth and how much do you owe?
Risk comes from not knowing what you're doing. (Warren Buffet)
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Mon Aug 18, 2014 1:52 pm |
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brokeandseparated
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Cash: $ 0.45
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quote:
Originally posted by littleroc02us
One important fact you didn't mention about the house, that would help me give you advice. How much do you think the house is worth and how much do you owe?
I owe $43k, the house is worth about $50k.
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Mon Aug 18, 2014 4:27 pm |
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littleroc02us
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Cash: $ 384.35
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I'd sell the house and break even and rent for a while until you can pay down your debts. I wouldn't file for bankruptcy, that is a life long decision that you shouldn't take lightly. I realize your ex has a lot of debt, but if there's a way to talk her off the ledge and sell the place, you'll both free up income that would have been going towards a mortgage.
If it were me, I'd find another solution then bankruptcy. Good luck!
Risk comes from not knowing what you're doing. (Warren Buffet)
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Thu Aug 21, 2014 3:56 pm |
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HerschLL
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Location: Canada
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If the house is in your name, then I would suggest to sell the house and clear your debts. Hopefully you will have something left with you which will help you rent a home. And if you are moving in with your girlfriend probably she can pay half the rent. Also try contacting some mortgage lenders and see if you can get a mortgage.
Filing for bankruptcy can vanish your problems for now, but that doesn’t mean it won’t come back. So a better solution will be to face it.
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Tue Nov 18, 2014 5:43 am |
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