Quitting Job in Chapter 7 Bankruptcy and Contract for Deeds

[jwrightis]

What is the name of your state (only U.S. law)? KY

I'm in a lot of financial trouble and medical trouble. I got my first job out of college, bought a house I can't afford and I have zero savings and I have no family here at all. I have been sued by a credit card company and I signed an agreed judgement and repayment plan to keep them from garnishing my wages. My job is very stressful. I'm a disabled vet and I have anxiety and PTSD and had to be hospitalized at the VA recently because I had a mental break down and was at work hallucinating. I want to quit my job and move back with my father and go back to college to get my Doctorate so I can teach. It's a less stressful type of job for me and I am very unhappy where I am with my career because my job is just so stressful to me, I can't afford to live here, I have no familial structure here if I have more flashbacks or episodes, and I'm honestly afraid of being on a job and having an episode. I must work with heavy machinery and I'm afraid I could hurt myself or someone else if I have a flash back. I'm also afraid of how other people will be afraid, and being in a remote location, might be afraid of me or not know how to handle me.

With that said, I make too much to qualify for a chapter 7 bankruptcy, I already tried last year and spent 800.00 only to have my lawyer tell me there's no way around a 13 and my repayment was more than I could afford since my mortgage and car payment are way above the IRS standard allowances for my area.

I want to default on my home loan, force it into foreclosure, then quit my job and live off my VA pension until I'm kicked out, move in with my father and go back to school then file a chapter 7. I wanted to take the money I'd save by not paying my mortgage (which isn't much after quitting my job) to buy things my vehicle needs, buy myself a new washer and dryer and pay for some dental work I desperately need done. But I'm afraid the trustee would think I was being fraudlent. I'm not, I just see no other way to handle both my medical issues and my financial issues at the moment than to just let it all go. My father then told me he would help me since he has two homes and with my PTSD and psych issues I need family near me, he would do a contract for deed with me and get me into a home. The problem is he's selling me interest free and giving me a deal where I get a 110K house for only 60K. So if he does that after my bankruptcy can they come after me since there's so much equity there?

 

[single317dad]

Legal advice: once the bankruptcy is discharged, it's done. Future dealings will not affect or be affected by the closed bankruptcy. Don't begin any future deals until your bankruptcy is discharged. Do not mislead the trustee regarding any debts, assets, contracts, etc. that are in place during the course of the bankruptcy.

Personal advice: completely tanking your financial situation in order to get out from under the burden of your debt is not a good plan.

 

[jwrightis]

I am already financially ruined. I have no savings, 30.00 to my name, a judgement and I need about a grand worth of work on my car that I'm going to have to use my mortgage payment to fix. My dad can give me a contract for deed for one fourth of my mortgage payment, and I have a disability pension I can ride out until I get done with my doctorate. I am looking at thi s as a better option, not tanking. I just didn't know how a trustee would view me leaving my job and moving due to my mental issues. Technically I could continue to work there, and just live on benzodiadepines, booze and spend a week or so in psych units from time to time. But to me, my happiness is worth more.

 

[Zigner]

There really was no need to start a second thread: https://forum.freeadvice.com/debt-collections-84/lean-car-but-car-not-worth-amount-remove-613394.html

 

[jwrightis]

That person is not me. I did not start a new thread.

 

[jwrightis]

Legal advice: once the bankruptcy is discharged, it's done. Future dealings will not affect or be affected by the closed bankruptcy. Don't begin any future deals until your bankruptcy is discharged. Do not mislead the trustee regarding any debts, assets, contracts, etc. that are in place during the course of the bankruptcy.

Personal advice: completely tanking your financial situation in order to get out from under the burden of your debt is not a good plan.

I will have to start up either the rent to own or the land contract deal with my dad before filing for bankruptcy. I will be using some of the money I save from not paying my mortgage to pay for the monthly payment for rent for my dads place. He won't let me rent it without an agreement.

With that said, how does the trustee view a Land Contract VS a Rent to Own agreement? I'll go into this with more equity than the federal government will allow because he's cutting me a deal. But since I won't own the house, nor will I be allowed to sell the house, unlike if I were in a traditional mortgage agreement, will the trustee consider this "equity"? And if so, and it's more than the homestead exemption, they can't make my dad sell the house. What can happen? Because I'm not filing bankruptcy until foreclosure so I don't have to pay HOA fees, but like I said, my dad wants me to get into the contract now and live close to him. Oh, my father wants to pay the taxes and homeowners insurance for as long as he owns the property as well and doesn't want the contract to hold me liable for those.

That was my question and nobody answered it.

 

[quincy]

That person is not me. I did not start a new thread.

Well, you DID start a new thread - just not the one that Zigner pointed out. Following is a link to your other thread which, by the way, should be closed to further questions. Keep all of your questions to this thread as they are all related. Thanks.

https://forum.freeadvice.com/mortgages-refinancing-foreclosure-107/foreclosure-home-unpermited-work-code-violation-617485.html

If your father is willing to let you live FOR FREE in his house while your own house is foreclosed on, that is okay. If your father is willing to rent to you, that is okay. That said, you have so many legal (and medical) issues swirling around here that a forum is not going to be the place where you can resolve them.

Because you are a veteran (thank you for your service), you might find some low-cost legal assistance through the VA or you might find some free or low-cost legal assistance in your area of Kentucky (a legal aid clinic? a law school? pro-bono assistance through a large law firm?). But a sit-down with a professional for a personal review of your finances and living situation is necessary.

Good luck.

 

[commentator]

This thread reeks of unrepentant untreated addiction issues. As much help is around everywhere, and the total, "thank you for your service" attitude of everyone around you, and the VA and all sorts of veteran's groups dying to provide you with legal assistance and psychological and financial counseling, you've gotta be ducking each and every one of them and coming on the internet to get us to tell you, out of sight and completely away from it, what to do, so you can shift the blame again. After all, those guys on the internet told me this would be the way to go. That's what you want to hear.

Go for it, get away with it, and next year you'll be back with legal questions about how to inherit from your father, whom you've driven completely nuts and used till he, like the other services and assistances you won't go for, are burned out and probably used to death.

 

[RRevak]

This thread reeks of unrepentant untreated addiction issues. As much help is around everywhere, and the total, "thank you for your service" attitude of everyone around you, and the VA and all sorts of veteran's groups dying to provide you with legal assistance and psychological and financial counseling, you've gotta be ducking each and every one of them and coming on the internet to get us to tell you, out of sight and completely away from it, what to do, so you can shift the blame again. After all, those guys on the internet told me this would be the way to go. That's what you want to hear.

Go for it, get away with it, and next year you'll be back with legal questions about how to inherit from your father, whom you've driven completely nuts and used till he, like the other services and assistances you won't go for, are burned out and probably used to death.

You've clearly never dealt with the VA before. In many MANY areas they're so backed up from lack of staff and funding that they're about as useful as boobs on a bull.

 

[commentator]

When people claim as this person has, that there is simply no help for them no where, no time, no how, they're usually not looking for it.

 

[RRevak]

When people claim as this person has, that there is simply no help for them no where, no time, no how, they're usually not looking for it.

Very very true

 

[jwrightis]

This thread reeks of unrepentant untreated addiction issues. As much help is around everywhere, and the total, "thank you for your service" attitude of everyone around you, and the VA and all sorts of veteran's groups dying to provide you with legal assistance and psychological and financial counseling, you've gotta be ducking each and every one of them and coming on the internet to get us to tell you, out of sight and completely away from it, what to do, so you can shift the blame again. After all, those guys on the internet told me this would be the way to go. That's what you want to hear.

Go for it, get away with it, and next year you'll be back with legal questions about how to inherit from your father, whom you've driven completely nuts and used till he, like the other services and assistances you won't go for, are burned out and probably used to death.

For your information I don't use drugs and I am not an addict. I see the VA once a week. I am in financial trouble and last I checked the VA doesn't pay my debts. I am not unlike any other person who can't afford their home.

With that said, I filed for bankrupcty thank you very much and I am under way for my chapter 7. I ended up getting my fathers house through a trust so that I don't have to pay rent or a rent to own agreement which will end up leaving me more disposable income than I had with a mortgage. And I've already been accepted back into college to obtain my doctorate.

You must think every disabled vet is an alcoholic or addict. The VA is a useless organization and they don't ever help the people who need help. It took me almost five years to get my disability increased because of a knee injury that was chronic and attributed to jumping from airplanes. It showed up AFTER I was discharged but was clearly forming before I was discharged. Five years, for a group of people to review a record. My doctor gave me a drug ****tail that almost killed me because they had me speed balling and the VA has almost ruined my life. Thanks to my outside family physician and my outside mental health doctor I am just fine with the medicine they are using to manage my issues. I still visit the VA because they require it if they give me my disability, but I don't even take the meds they give me. My civilian psychiatrist shakes his head when I bring in the meds they prescribe me.

I have never heard of the VA paying a persons mortgage. I don't know what la la land you live in. With that said if you had ANY idea of what it was like to have to be a millennial and buy a home you'd think twice about people not being able to handle their affairs. My generation can't afford homes or even cars because we have a pool of lower paying jobs to choose from. Our student loan debts are sky high and we can't even discharge those in a bankruptcy. My only chance at getting a decent job is by going back to school and getting hired as a professor or adjunct and then I'll make maybe 15-20K more than I'd make if I hadn't gone back. The housing crisis isn't over, we're creating another bubble. So this, pull yourself up by your bootstraps and seek help attitude is total nonsense. I am lucky enough that my parents have some money, a lot of And people under 35 don't have that. We're victims of the baby boomers failed policies and that is a fact. And the military, that's not a career choice. I was recycled twice with less than a six month break in between in the Iraq war. Many men and women were recycled five times that I know of. If you have never been to war, had to do horrific things, seen people be killed and have to do it more than once then you have no room to tell me what I should do with my disability or how I should handle it.

 

[jwrightis]

When people claim as this person has, that there is simply no help for them no where, no time, no how, they're usually not looking for it.

Riiiight. I paid my lawyer to help me. I was asking how bankruptcy would work if I quit my job. I wasn't complaining that "nobody" would help me. Clearly my parents were willing to help me, or maybe you missed that. You just want to pretend you are high and mighty and do the "pull yourself up by your bootstraps" speech because apparently you feel like you have it all figured out. It makes no difference to me, I'm going to be just fine. This is a forum to ask questions, not to take for serious legal advice. It's just to get different perspectives and if I wanted a lecture from a stranger about all the things I can do to help myself (to which you failed to list those) then I'd hire someone to do it.

You also must think that when children ask their parents for help we must be dead beats. Newsflash, it is customary for under 35 year olds to have help from their parents or to live with their parents into their 30's and longer. We are also getting married at older ages and having less, if any children because we cannot survive on our own with the high cost of living and our student loan debt. So, just stop because you obviously have no idea about who I am or what my life is like just based on the small bit of information I chose to share with you on this forum.