I make decent money now but am in way over my head in financial debt. I moved to take a new job to try and dig myself out of debt but have been unable to rent out my home from my old address. Now I am in worse shape than before. I now make 65,000 a year but used to make 52,000. It's just too late. Can I file bankruptcy making this much money? What should I do? I don't care if I lose every bit of property I own if I can just get out of all this debt. Is there anyone who can help me know what to do?
2006-08-29 08:31:57 · 20 answers · asked by forget it! 1 in Business & Finance ➔ Personal Finance
I cannot sell my home in Georgia because I have an equity loan on it that is more than the value of my home.
2006-08-29 08:39:17 · update #1
Get a 2nd job. No fun, but you got into this hole so start digging.
2006-08-29 08:37:32 · answer #1 · answered by parshooter 5 · 0⤊ 0⤋
I'm not all that familar with how equity loans work, but I'm assuming that you mean the equity loan plus what you have left on the principle of your mortgage would not be covered by selling the house in GA. I would think that you would be able to sell the house, pay off the mortgage and some of the equity loan and then get a debt consolidation loan to cover the rest of the equity loan plus some of your other debt. Especially since the GA property is only costing you money right now, at least your debt would go down, even if it did not disappear.
As others have said, get a financial advisor (your local government or a non-profit group in your area may be able to help you for free or very little money) who can help you find a good company to consolidate with.
Your making a pretty decent wage, so I'm thinking (based on what you have told us) that by tightening your belt a bit, you will be able to get thru this. Whatever you do, don't put this off any longer!
Hang in there.
2006-08-29 16:48:19 · answer #2 · answered by Ro-bot 5 · 0⤊ 0⤋
sorry to hear about your situation there. To answer your question, there's a lot of things that you can do...claiming bankruptcy is an alternative, but keep in mind that this will stay on your record for 7-10 years depending on the type of bankruptcy you claim (Chapter 7 or 13). Another thing you have to take into consideration is your taxes and how many claims you declare on your income. What's good is that you have "good" debt (i.e. your mortgage). What that means is that you can decrease your taxable income because of the interest you're paying towards your mortgage. If you need immediate solutions, try contacting all your creditors. Explain to them your situation and see if you can make certain payment arrangements that will keep your creditors satisfied. In the meantime, sit down with someone that knows about money and figure out what your debt to income ratio is. From there you should come up with a plan or map that will tell you where to go and how you're going to get there. You have a long road ahead of you, but I'm hoping that you're learning from all this so that it doesn't happen again. Cheers bud. Good luck.
2006-08-29 15:57:26 · answer #3 · answered by thisoneguy78 1 · 0⤊ 0⤋
You need professional help at this point. In your situation I would seek the services of both a financial planner, and a bankruptcy attorney.
Also consider hiring a property management company, they get a small cut for renting out and maintaining property - this may be income you need to stay away from bankruptcy.
You can file bankruptcy making the amount you make. However, each issue needs to be addressed that contributed to your current situation, and the BK lawyers aren't really in that part of the business - hence the need for a financial professional who isn't trying to sell you any financial products at this point.
Hope this helps.
2006-08-29 19:42:57 · answer #4 · answered by J. C. 6 · 0⤊ 0⤋
Sell the house and use the money to get out of debt as much as you can. Consolidate everything else and deal with a reputable company that helps people out of these situations. It may not be easy, but by cutting your living costs to the bone you should be able to make good on most of your debts. Good Luck.
2006-08-29 15:39:46 · answer #5 · answered by ? 6 · 0⤊ 0⤋
You can go to Craigs List and post there for room mates. You can rent out each room.
There are lots of people in need that can pay you a deposit and the rent.
I hope this helps. Also there are investors there that will help as well.
www.craigslist.com then you can put your zip code in and it will take you to the area you live and you can review the post and there are people that are looking for a place to relocate and can barter or rent, May want to try a Owner Financing,
2006-08-29 16:56:28 · answer #6 · answered by Kayren 1 · 0⤊ 0⤋
the more you worry about it the more you will dig a deeper hole. sort out and priorotise your debts see first whether it is possiable to pay them off. Bankruptacy is a big step and can leave you black listed for up to 10 years meaning no credit. it will remove all the debt and worry but its a big step to take.
try to see with the credit companies whether you can pay a resonable amount that suits you so at least you have some money for yourself.
2006-08-29 15:37:59 · answer #7 · answered by lisa7777 2 · 0⤊ 0⤋
You poor thing you must get help . Look in the yellow pages for your nearest insolvency adviser and make an appointment fast. You may feel dreadful at the moment but believe me they are friendly and there to help you. You have overcome the first hurdle by recognising you have a problem now it's time to share it with someone who can help. Ring one tomorrow. Good luck ,All will work out in the end.
2006-08-29 15:40:40 · answer #8 · answered by little weed 6 · 0⤊ 0⤋
I know of a free service that specializes in helping folks who are afraid that bankruptcy may be the only option. They'll help you to find an appropriate, locally licensed resource to help you one on one. There's no cost and no obligation. See the Sources box for the link.
2006-08-29 16:57:37 · answer #9 · answered by Anonymous · 0⤊ 0⤋
You need to speak with a financial or credit counselor quick. When you are in this type of trouble, your options get slimmer with each passing month.
Try finding one that is nearby so that you can meet with a counselor face-to-face. Many are free. Also, make sure they have a satisfactory rating with the Better Business Bureau.
Here is a state directory of agencies.
2006-08-29 16:13:10 · answer #10 · answered by Anonymous · 0⤊ 0⤋
1. put your house on the market immediately- sell it and use that money to pay off debt
2. look at your expenses and cut back on all the extras you dont need or use
3. think about selling your current property
4. pay off high interest credit debt first
5. quit belly aching you make more than most and should consult someone to manage your money if you cant do it
2006-08-29 15:41:40 · answer #11 · answered by Anonymous · 0⤊ 0⤋