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Considering Chapter 7 Bankruptcy or Ride it Out?

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Junior Member
What is the name of your state (only U.S. law)? Florida

I'm considering Chapter 7 Bankruptcy or just riding it out. Collection calls do not bother me nor do their annoying tactics. However, the possibility of judgments (which I know are rare) and wage garnishments (which I know are also very rare because I am self-employed) are a concern. To be concise, here are the facts:

I am single, 43yo woman, self-employed (low-income), I have NEVER filed for bankruptcy, in the good days I owned two properties but lost my house in 2009 during the burst (foreclosure, 1st mortgage $180K, HELOC $100K) and subsequently moved into my only other property (an investment condo) that is currently under foreclosure (sale date in couple of weeks). The condo has a 1st Mortgage of $80K and a 2nd of about $26K but has a resale value of $40K (which is why I have no interest in keeping it and filing Chapter 7). I've been repeatedly trying to apply and fight with the mortgage company to offer a Deed in lieu but they keep taking their time and giving decisions at the last minute (where it is virtually too late for me to react). I have one 2010 Judgment/Lien of $14K from an unsecured credit card that is apparently the reason for their denial of my Deed in lieu application. I will file a Motion to Cancel the Foreclosure Sale and Reschedule Date to allow for more time for me to try to negotiate the judgment out, but I doubt the courts will grant it.

Besides the above, I have about $25K in additional credit card debt from 2009 that have since been closed and sent to collections (is the term discharged?). I do not have any assets to speak of other than personal items and a car that is probably worth $2,500 that I use for my business and personal.

If I need to, I can probably gather the $1500 to $2000 needed to file Chapter 7 OR to negotiate a deal with the Judgement Holders. The only reason I would negotiate with the judgment/lien holders ($14K) would be if the courts granted extra time (therefore making it worthwhile because I would essentially get a few extra months of "no rent" AND, with a Deed-in-Lieu" I would be eligible to stay longer at no charge (3 months) or rent the property at Fair market Value (which I prefer) for up to 12 months and be eligible for up to $3000 for cash-for-keys. If i can't get extra time then it would make no sense for me to negotiate and i would have to consider filing Chapter 7 OR moving out within this month because of the looming foreclosure.

So, I know it is illegal to file Bankruptcy to delay a foreclosure and I DO NOT plan on doing this. If I do it, I will file it because i plan to go through with it.

I see the advantages of filing bankruptcy within the next two weeks as being: (1) It will delay the sale of the foreclosure and any months I gain (3 to 4 months, I hear, is this accurate?) are extra "free" rental months I could think of as paying for the bankruptcy fees; (2) A clean slate with no concerns of any future judgments or collections from past creditors (even though I hear it is extremely rare for a company to attempt wage garnishments on a self-employed person AND for banks to sue for the remainder after foreclosure)

The disadvantages of Filing Chapter 7 are: (1) Obviously the 7 year stigma on the credit report; (2) The fact that every family member and trusted well-to-do friend (one is a banker) says one should NEVER file for Bankruptcy unless if it is the last resort or due to huge medical bills -- even like that, they advise against it; (3) It will no allow me to file within six years and what if I have a true medical catastrophe with bills (I know, paranoid); (4) My credit is shot, anyway, but it would be easier to rebuild credit with due diligence WITHOUT filing (true?).

So, What are your thoughts? I would also like to hear the reasoning from individuals that have filed or chosen not to file. Also, any other ideas to delay the foreclosure and, of course, your thoughts about whether or not Chapter 7 is a poor or good idea for my situation.

Thank you so much in advance for your replies.


Senior Member
I think you need to sit down with a financial counselor in your area for a personal review of your financial history and all facts. No one on the forum can tell you whether to file a Chapter 7 or not.


Senior Member
I have only one small thing to add for your consideration: cash for keys may also available (dependent on your lender) after the foreclosure sale.

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