Don't know what to do...

[Yankee Fan]

I lost my job back in June of 2008 and have not been able to find a new job. I had to cash out my 401(k) and use my credit cards to survive for the last 9 months. As of March 1, we do not have enough money left to continue making our house payments and credit card payments (right now we barely have enough left to eat and keep the lights on for this month). Currently, everything is up to date and I've never had a late payment. But it's about to come crashing down.

 

The problem is I have no prospects of getting a job here. I've spent the last 9 months actively searching for work with no success. Most of the local companies are not looking for people at my level (senior level), and the only leads I've received locally are for 40% to 50% less than what I was making before, which makes it impossible to continue making the payments. We are looking at relocating to another state to live with my family while I attempt to get another job there.

 

In addition to the CC debt, thanks to the wonderful real estate market here in FL, my house is about $75k upside down. Right now I'm considering Chapter 7 since I have NO income and have no idea when I will get work again. We don't want to stay here, actually...we can't. I need to find work, and there isn't any around here. If I do go Chapter 7, what do I do about the mortgages (1st and 2nd)? Do they get included in the BK? Do I just leave and send the keys to the bank? Please advise.

[breeze]

Sounds like bk is about your only way out. You can give up the house in a bk if you want to, but you really should consult with a good bk attorney.

 

Why don't you post about your situation in the bankruptcy forum?

[WalterRego]

In a 7 if you don't make the mortgage payments and the house is upside down, the Trustee abandons the property to the bank which then forecloses. But you do at least get out of the cc debt and personal liability on the mortgages.

 

Any chance if you got out of the cc debt you could make the mortgage payments and stay a while? Oh wait, you said you can't find work and don't want to stay, so that probably wouldn't even be worth it to you.