Life changing decisions

[mendsley]

What is the name of your state (only U.S. law)?
I currently live in Utah since 11/2009.
The house that is going into forclosure is in Nevada.
I am currently wanting to move to California and eventually file Chapter 7.

Yesterday I found out that a house, that is in my name, we lived in, is foreclosing and being auctioned off on Feb 20. Well when I bought the house I had to get a first and second. Well the house is predicted to sell about $200,000 less than I bought if for. I received a letter in the mail from a credit agency that the second mortgage is my personal liablilty and the foreclosure will not cover my liability. I contacted a bankruptcy lawyer and he said that as far as he knows, I am liable for the $80,000 and they will come after me.

I have been racking my brain and have determined to file bankruptcy, this is not the only debt I have and with that I am about $135,000 total in debt. I talked to the bankruptcy laywer and he said the only option I have is to file Chapter 13 and Chapter 7 is not an option becuase I make way too much.

So, I am in a corner with my life, wife, finances and I am now very unhappy with everything in my life. I am trying to think rational and figure out what is best for ME! Although this may sound rational but I am contiplating quiting my job, but before I do I will line up a job that will allow me to qulify for Chapter 7, I will move down where my son is, after I can file Chapter 7 and the dust settles I will than file for divorce, maybe. And after everything is dealt with start my life over with everything fresh.

The reason for Chapter 7 and not just file for Chapter 13 is because the bankruptcy laywer said he does not suggest a Chapter 13 becuase I will not have NO extra money for five years and no matter what, I am liable to pay what ever they come up with and if I for some reason fail to make payments they will throw everything out and I will be worse off than I originaly was. I don't know if I can live like that!

Like I said I will not quit my job until I have a job down there first and I do realise that is a problem I have created. So please do not say that this is a problem I created and I should have to deal with it. I know my mistakes but, I want to make the right decision here. This is the current situtation and I am trying to do what is the best thing I can possibly do for ME and my son!

Southern Califonia is where I grew up, my friends and family are down there. I am really unhappy where I am at, although I make good money I am unhappy. I dont know if I am unhappy becuase I have lost my family but, I do feel unhappy. I am feeling like I might be happier and have a better support system for me down there but I will be going from a $5600 a month job to about $2000 a month.

I have been having this feeling of something inside is about to snap, I don't know what that means but I am about to give up so any direction, feedback or good advice would greatly be appreciated.

MIKE

[Dougthegreat]

Mike,

I think you ought to seriously reconsider the idea of quitting a job so you can discharge your debt, instead of just going into 13. I do not know the specifics of your situation, but refusing to work just so you can screw your creditors, instead of working out a path to financial stability in 3-5 years is just plain wrong. Not only that, but consider that many jobs check your credit history, and you may not find it as easy to get another well-paying job when the "dust settles."

[mendsley]

Hey Doug, I do understand what you are saying. The thing I am looking at the amount of money I will have with the choice I make. I do know jobs look at credit history and I will have to explain that I am seperated and am going to go thru a divoirce.

If I get another job, which I already have one lined up, then I will not hve that much money after bills. But I do think about after the dust settles can I find another job that will give me what I have know? I do know this is not the only job and it will take awhile to get back up to where I am at but I will be debt free.

As far as screwing my creditors goes, I was and am still planning to pay my credit card and vehicle loan. When I got this letter about the second mortgage I feel like I am in a corner, I know I created this debt but, I am trying to figure out what is the best interest for ME! I feel like I cannot afford to pay this back and 5 years with NO extra money is not sounding too good. I am getting a divorce and this might be a good sign for me to a fresh start with life.

Maybe someone can give me a different outlook at this?? I am really trying to do the best thing

[Who's Liable?]

Whichever route you decide to follow, remember the trustee can revoke your BK, not matter which you file, if they have proof of fraud on your part.

[bigun]

You won't be the first person who took a lower paying job, refused overtime, etc. in order to get there income to a level where they could qualify for a Chapter 7. No fraud in that.
You will be require to list all creditors including the car and credit cards. You can reaffirm the car loan but, just let the credit cards go. You won't be able to pay them after you file bk due to preference issues and by the time your discharged, the accounts will be closed and with late fees, overlimit fees and, default interest rates you'll be better off just lumping them in with the mortgage and starting all over with no unsecured debt-particularly since you'll have a lower income.