deed-in-lieu

[Lynn]

Sorry - also, my husband and I make enough to pay the mortgage and lot together (barely - the lot rent raises every year), but not separately. How is that looked at in bankruptcy?

[Bill Fry]

Bankruptcy will ruin your credit,but not for ever.10 years is the max.
It should be used only as a last resort.
You should consult a attorney for answers to your last question on your income and ablity to pay.

[rmurray]

Bankruptcy will affect your credit score for the next few years....but you can recover in short order...about 2 years of paying all debts on time..the score will recover a lot..

The bk probably would not show up on your file for many months....I hate to say it..but you could live in the home for many months while this is going on..and pay nothing...crappy for the lenders..but good for the consumers..

The bk will stay on the CB files for 10 years...but credit scores are weighted to the last 24 months..You will have to monitor your credit files for errors..some lenders continue to violate the law and enter negative information..

When talking to an attorney...remember his fees are set by the court..Chapter 7..you pay nothing..he gets low fee...Chapter 13 you pay for as long as 5 years..then all debts go away...he gets MUCH more fees...Guess which one they often recommend..If you can legally do it..file a chapter 7 bankruptcy..Most assets you have will be protected..but this has to be analyzed in relation to your state laws...

[rmurray]

Also...you filing will NOT absolve your former friend of his responsibility to pay..That will be his problem..

[Lynn]

Chapter 7 "absolves" me of all debts? I just need out of my home. I'm not trying to take the easy way out. I can pay my car note, my credit card bill, utilities, and a _reasonable_ home payment (lease or house note). Does declaring Ch.7 mean I _have_ to file all my debts under bankruptcy?

[rmurray]

Technically yes...but you can reaffirm any debt you wish to pay if the lender accepts the arrangement...

Most attornies will recommend you clean your slate..maybe reaffirm your car note if you have small equity and 1 good credit card for future use..They will recommend you give up most others..

Remember 1 thing..the bk will lower your credit score...no more so than a repossession...but lower credit scores could effect things you do not think of..example..car insurance rates could be affected...renters insurance probably will not be available...even health and life insurance rates can be effected.deposits might be required for utilities and cell phones might be hard to get...for sure interest rates on future loans (for 2 to 4 years) will be higher....but all of this will happen with just the reposession so the bk does not make it worse..

Good Luck

[Lynn]

Just an update...in case anyone was wondering. I decided to keep the MH until I sell it. My husband will pay enough childsupport to keep up the mortgage payment and then some - but not so much as to be unfair. thanks for everyone's input. this is the first "chat" I've been apart of...I think I like it. Thanks again.

[rmurray]

Good Luck

[Lynn]

Well, it's been a month...I'm not totally discouraged. We've had several calls in response to the "For Sale" sign but no one wants to pay the remainder of the loan - a whopping 53k! Any suggestions?