which direction to go


R

rockio

not sure what direction to go.

Income 65,000.

Mortgage 1,700 bought the home 6 months ago. (house went up 25k in the
last six months and 80k in the last year. boombing town because of home
development)

Child support 500 per month.

Child care 800 per month.

1,100 monthly expenses, ie. pg&e, water and garbage, food
transportation etc.

not including any money for entertainment or eating out. basically
unless its free we ain't having it.

thinking about selling the home and renting house or apartment. until
we are ready to buy another home in similar neibhorhood.

we met with an attorney about filing for bk on 60,000 debt that was
accumulated over the past 6 years but haven't actually filed yet.
which includes 4 broken down vehicles that were repossessed as well as
2 newer cars that were also repossesed recently. 10,000 in credit card
debt. 3,000 pay day loans.

want to pursue a career as a firemen and am currently on the waiting
list in January for night shift firemen academy. It was a 1 year wait.
which i need to save 3,000 for tuition books and equipment plus
traveling costs.

any advice or someone locally i can talk to would be appreciated.
 
Ad

Advertisements

J

John A. Weeks III

rockio said:
Income 65,000.

Mortgage 1,700 bought the home 6 months ago. (house went up 25k in the
last six months and 80k in the last year. boombing town because of home
development)
I simply cannot believe that a lender let you buy a house
with $60K in consumer debt. This has to be made up.
Child support 500 per month.
Child care 800 per month.
1,100 monthly expenses, ie. pg&e, water and garbage, food
transportation etc.
we met with an attorney about filing for bk on 60,000 debt that was
accumulated over the past 6 years but haven't actually filed yet.
which includes 4 broken down vehicles that were repossessed as well as
2 newer cars that were also repossesed recently. 10,000 in credit card
debt. 3,000 pay day loans.
With those payments and debts, your financial life is already
destroyed. I wouldn't bother trying to save anything. All you
can try to do is avoid becoming homeless out of this deal.

If you have any cars left, figure out which one you can hang
onto and turn the rest in. If you have cars free and clear,
try to sell them off and buy a cheap efficient used car you can
live with for the next 7 years. It will be that long before
you will get another one.

Next, stop paying for the house. Let it go back and get repo'ed.
Selling it will not help--you are likely upside down in it, and
you don't have the cash to pay the difference at closing. Let
the mortgage lender eat it since they were silly to lend it to
you in the first place.

If you sell the house, you have to be out right away. If you
just stop paying, you will get 6 to 9 months of free living.
That will really help you save the money and get current with
other things like the pay day loan knuckle crusher and to keep
paying for your kids and utilities.

Then, when things really come to a head, such as when the bill
collectors are taking you to court, then you file for bankruptcy.
You don't want to do it too soon since you want to string it out
and live free in the house as long as you can.
want to pursue a career as a firemen and am currently on the waiting
list in January for night shift firemen academy. It was a 1 year wait.
which i need to save 3,000 for tuition books and equipment plus
traveling costs.
Do they do a back-ground check? Bad credit can often disqualify
you from positions of responsibility like this. You better check
before you get your heart set on this move.
any advice or someone locally i can talk to would be appreciated.
I don't like telling someone to do this, but you are in far
beyond what most people could ever get out of, and that is what
the bankruptcy laws were written for.

-john-
 
J

JJ

I was thinking the same thing...

If lenders are being that loose with money, then if the purported "housing
bubble" bursts (if it really exists - debatable) or a bad recession hits,
the cleanup could rival the S&L mess.
 
Ad

Advertisements

S

Sgt. Sausage

JJ said:
I was thinking the same thing...

If lenders are being that loose with money, then if the purported "housing
bubble" bursts (if it really exists - debatable) or a bad recession hits,
the cleanup could rival the S&L mess.
Yeah, that's right. It's the lenders' fault the guy
spent a bunch of money, ran up debt he couldn't pay,
and the rest of us have to pick up the tab.

Give it a break. The guy signed (probably multiple)
agreements promising to pay and he's not going to
pay. WTF happened to personal responsibility.

Yes, the lenders were loose with their money. Yes,
they get what they deserve -- they made a bad business
decision and will pay the price for it some day, but
come on, let's all start taking responsibility for
our actions. This guy's bankruptcy is of his own making
and he's got no one to blame but himself.
From: "John A. Weeks III" <john@johnweeks.com>
Subject: Re: which direction to go
Date: Friday, July 08, 2005 9:00 PM
I simply cannot believe that a lender let you buy a house
with $60K in consumer debt. This has to be made up.
Nope. It's getting crazy out there.

I've got a sister & brother-in-law who bought a
house about a year and a half ago. 3 months ago they
finalized their bankruptcy. $107,000 in credit card
debt (on an annual income of $40K (ish)) filed off and
erased.

I've tried having the "personal responsibility"
discussion with them, but they just don't get it
either. They pull the religious card out. Basically,
their thinking is that they can do what they want
and it doesn't matter in the end because "God will
provide" and make everything AOK. I call bullshit
on that one. (1) I don't believe in a God, and
(2) I would have to think that if they God they
believe in exists, he really wouldn't like their
attitude about screwing the rest of the world
for their personal gain.

I just don't get it.
 

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Top