My wife and I have gotten to the point where I am on the verge of getting my two cars repossessed. Recently I got my income lowered by $20000 a year and my debt exceeds my income. I am behind on my morgage in which I am paying out of each pay period to get it caught up because I do not want to lose my house but the other debts suffer because of this. What do I do about the threat of my cars eventually being repossessed? What other choices do I have besides bankruptcy? Can someone point my in the right direction?
2007-05-24 04:43:19 · 4 answers · asked by donald 1 1 in Business & Finance ➔ Renting & Real Estate
You're in a tough spot, that's for sure. Any chance you can sell the cars for more than what you owe, and buy cheap ones to get around? And if you have a large mortgate, it might be worth considering putting your house on the market if you have much equity, then either buy a smaller house or rent for awhile until you get back on your feet.
Bankrupcy should be considered a last resort, but even then you'll be starting over, and your credit will be shot for years.
Good luck.
2007-05-24 04:49:12 · answer #1 · answered by Judy 7 · 1⤊ 0⤋
Bankruptcy (a last resort) or debt consolidation (or putting your house on the market and hoping it sells fast - though in this market it will be tough) are about it, sorry to say. You could sell your cars if you can get more than you owe and then buy one cheap car to get around. Can you or your wife get a second job? There are no magic answers. You need to get going with this now and consult a professional to assist you.
2007-05-24 05:11:25 · answer #2 · answered by Anonymous · 0⤊ 1⤋
Hopefully you have already called your creditors and tried to negotiate smaller payments. If not, do it today.
Is it possible that you can obtain some additional income? Can you cut back on some of your expenses? Pull out all of your bills, track where the money goes for groceries, gas, etc. and find places where you can save. Every dollar counts.
Good luck.
2007-05-24 05:13:24 · answer #3 · answered by godged 7 · 1⤊ 0⤋
Best thing is to start by trying to protect your home. Look at the FHA and HUD websites they have financial counsel links the web addresses are www.fha.com and www.hud.gov. Please be cautious trying to refinance your home. Predatory lenders are everywhere.
2007-05-24 04:58:03 · answer #4 · answered by Marion 2 · 1⤊ 0⤋