Bankrupcy or Sol

[elcura]

What is the name of your state? tx
Can some one give me advice please.

I moved from nm to tx 2 years ago. ive been in cc debt for over 10 years.
i owe about $115,000 in credit card debt.
i have two homes one in NM and the one i live in in TX.
i cant afford to pay the cards any more because the interest rates went up from 3.9 to 24%.
would it be better to file for bankruptcy or do the sol. ive been reading about the sol and i cant seem to find anything when it comes to what happens when a the creditor files a law suit against me?
If a file for bankruptcy do i loose both houses.?
If i do the sol will they go after my second house?
What are the pros and cons of sol and bankruptcy. ?
can you point me in the direction of where i can look these up?
Thanks for any help.

 

[bigun]

Owing $115K and owning 2 homes, there's no way on earth you'll beat the Tx. 4 year SOL. Somebody will sue sooner rather than later.
You need a lawyer now. If you bought that home in Tx less than 40 months prior to filing bk, a provision of the bk reform act will limit your exemption to $125K.
I don't know all of your circumstances but, is it possible to sell one of the house and use the equity to get this straightend out?

 

[elcura]

i havent filed for bankruptcy. I debating what to do. I owe the complete ammount on both houses that i bought. ive had one for 2 years and the other for 4 years. selling is not a problem i cant make much ill problaly loose money.
can i do the sol thing and just wait it out?
what kind of law suit can the cc company file against me?

if i do the sol thing which will be during the next 4 years will i have to paytaxes on what ever is discharged?

If i declare for bank ruptcy will i have to pay taxes on what ever gets discharged.

thanks for repling.

 

[bigun]

CC comapnies will sue you for breach of contract. While they can't garnish wages in Tx. they can go after your bank account. I just don't see you beating the SOL clock on this one.
If the cc comapny issues a 1099C {forgivenness of debt} it may create a tax liability.
There will be no tax liability on debts discharged in bk.
The balance of bk reform will take place on 10/17. If you make over the median income in Tx. you'll likely not get a chatper 7 discharged.

 

[elcura]

bigun thanks for the reply. How would they go after my account by a law suite?
what kind of lawsuite can they file against me?
where can i go a get info on sol for the state of texas? and how do i get there? for either bk or Sol?

Ive tried looking at the penal code but i got lost there?
As for my checking aaccount cant i just cash my check over the counter?
if i file for bk what day is the latest so i dont go under the new law?


Thanks again for your response.

 

[bigun]

Here's some info on the Tx. SOL:

http://community-2.webtv.net/Y-Chat/WhyChatsCredit/page44.html

10/17 is the date the new bk law will go into affect.