Bankruptcy/Real Estate? Long Question?
A little background here.. I am trying to get myself out of a terrible financial situation. I was 22 when my husband and I bouught our first home (which is upside down) and started accumulating debt. I live in Las Vegas where the real estate market has plummeted. My husband and I are separated, and have about 45 thousand in debt bewteen the both of us. We keep tinkering back and forth between doing a bankruptcy or just paying our bills off.I have gotten setlements on 3 of my accounts, so that would bring me to 000 in debt approximately, the also offered to do a loan modification, POSSIBLY approved after a six month forebearance on our home. Bringing our payment from 00 a month to about 00. But we wont know for 4 months if that is even approved and it could go either way. I am in the reserves and trying to go on a deployment for 7-9 months that would be about 000 tax free before the end of the year. If I do a Chapter 7, I believe the majority, if not all, of that money is protected. I could save it, and use about 1/2 of that to buy an investiment home, but I won’t be able to buy one until after statue of limitations which is 2 years minimum?? If I don’t do a bankruptcy then I plan to pay off the settlement accounts first, while paying the others off consecutively (monthly) to reestablish history.after 6 months to 1 year of rebuilding my history then I want to buy an investment home. I am now 25, and I know now basic necessities to be secure. Such as 3-6 months emergency fund, as 0- minimum amount of debt as possible, and securities to help me survive or profit from the recession, my choice is real estate since I’ve studied it, I enjoy it, and I believe firmly I know how to make money in it. And I don’t know much about any other market, such as the stock market, orinvesting.Please help. We have been riding the fence for about 7 months, wasting time because our minds keep changing. We are separated but which ever way we decide to go with this we plan to help each other. I want to build my wealth, become secure, and have long term investments. I want to start up a business (home staging) within the next 3 years also.
One Response
sweetpea111881
10 Feb 2010
It sounds like you have a lot going on. It would be helpful if you sat down with a bankruptcy attorney for a consultation. They will probably tell you to file bankruptcy, but at least you will know the pros and cons of filing and what you would be able to do going forward.
Your best bet would be to start paying back the debt right now and continue to make the mortgage payments as much as possible. Always stay in contact with your creditors. Hope this helps!