Have I done The Right Thing CH7

[Mickey6076]

What is the name of your state? Michigan

Last June I lost my good paying job 100/K year. I have not been able to find another job. I have had a few commission checks come in and have exhausted my unemployment and have exhausted 75% of 401K and savings account. I have around $10,000.00 left all in all. I just filed for CH7 two weeks ago and none of my creditors are behind. I was advised to let everything go. $40K in credit card bills, $50K in equity liens, 142K on the mortgage, and two auto loans. One is a purchase is owing $17K and one is a lease. I have tried to keep everything current but, I can't do it anymore. My monthly bills were like $4800 mo. I have a big tax liability this year due to the 401K and unemployment. I have used my Credit Cards in the last year but thought by now I would have had a job and been able to pay them back. It took time to get into debt and I know it takes time to get out. But I don't see an out for me at this time, other than chapter 7. So I quess my questions are: Are all of theses people going to be able to sue me? I am not going to make my mortgage payment in April or equitys, so how much time do I have before I have to move out? What is going to happen between the mortgage company and two bank leins, because the house is not worth $192K, one bank will lose $10K and the other might get 5-15K after the mortgage company gets their money. Should I try to keep the house and try to settle on the two house liens? Is filing bankruptcy on a house any different in time than a foreclosure? Is this bankruptcy the best thing I could have done? I'm a 43 year old male starting all over again from scratch. I feel very bad that I can't pay anyone back, and i'm totally stressed out about not being able to find a job, I'm not going to have a car when this is done, and have no place to go. I'm totally stressing about the 341 meeting to come in 4-6 weeks. Any advise would be greatly appreciated.

 

[Ladynred]

You filed Ch 7 2 weeks ago and you're STILL paying unsecured debts ???
If you want to keep secured property, you have to keep paying those, but if you're not going to keep the house, then for God sakes stop the bleeding !!

Once you've filed, the automatic stay drops into place and prevents ALL collection action - including foreclosures. Since you're not behind in payments, then they're not going to be asking for Relief from the Stay, which is the only way they could proceed.

Are all of theses people going to be able to sue me?

NO ONE can sue you while the Automatic Stay is in place and if the debts are all discharged in the end then they are forever prohibited from attempting to collect on a discharged debt thru the permanent injunction of the discharge.

I am not going to make my mortgage payment in April or equitys, so how much time do I have before I have to move out?

You probably have several months. If none of them file for Relief from the Automatic Stay, you have until AFTER the discharge before they can do anything.

What is going to happen between the mortgage company and two bank leins, because the house is not worth $192K, one bank will lose $10K and the other might get 5-15K after the mortgage company gets their money.

If you don't intend to keep the property and the loans are discharged, it makes no difference what they do or do not get, they can NEVER come after you for ANY of it !

Should I try to keep the house and try to settle on the two house liens? Is filing bankruptcy on a house any different in time than a foreclosure?

If you can't afford to keep the payments up, why would you ? What kinds of liens ? Are they equity loans ? Its unlikely they'll settle and you'd probably wind up with a huge tax hit if they did !

Is this bankruptcy the best thing I could have done?

The only one who can determine that is you. You CAN recover from it and even buy another house in 2-4 years if you're diligent with credit repair and very careful rebuilding of your credit.

I'm not going to have a car when this is done

Why not ?? Too much equity that can't be exempted ???

I'm totally stressing about the 341 meeting to come in 4-6 weeks.

What does your lawyer have to say ?? The 341 meeting will typically take no more than 10 minutes, most take far less. If you're not attempting to get away with something, you have nothing to worry about.

 

[Mickey6076]

Thank You lady N Red............

Im not paying any unsecured debt now. I stoped last week. I'm coming to terms with the house. I was just confused with what happens with the mortgage company and banks. My uncle said he would make the mortgage payments, and two equity payments, till I got on my feet, but the attorney say's it wouldn't look good to the creditors. I also won alot of money at the casinos, but gave it all back, which doesn't look good. I was trying to keep everyone happy. I have used my credit cards in the last year mainly thru december and have taken cash advances out in November at the casino, could this be a problem? I also went on vacation in October and used my cards and money, will this be a problem with the creditors? I thought by now I would be working, but I kept depleating all my funds until I said I just can't do this anymore. I know I will not make the money I was used to making. I was just at the right place at the right time.

 

[Ladynred]

Cash advances can be examined for up to 1 year prior to your filing date. What happens with them depends a lot on what you used the money for. Charges for vacations when you had no income could look like fraud and creditors could object to the discharge of that debt.

If you intend to keep the secured property, then payments on them will hardly be questioned, but if you do NOT intend to keep the property, there's really no point in throwing your money away.