Anyone faced bankruptcy

[thao_yaaj83]

Has anyone in here had faced bankruptcy? I know that some people like to keep it personal but I can use any help.

My house is being foreclosed in a month. I know that the bank will come
after me for the balance that is owed on after the auction. Before that happens, I am planning to file bankrupt so they can not put a lawsuit against me. Is there anything I should know beside it will stay on my credit for a long time and I will not be able to get anything.

[meyaaj]

i think u got a head start in life lol, im srry to hear bout ur situation....i dont know anything about filing bankruptcy so hopefully people here can help u.

[tushlub]

If your home is foreclosed, the bank will not come after you for the difference. So, if that's the only worry you have, you don't have to file bankruptcy. Although, the bank will not come after you for the difference, you will still have to report the value of the house on your tax next year (to be on the safe side). I believe the law changed in 2007, stating that an individual does not have to claim up to $250,000 and a couple is up to $500,000 on homes as income. Before 2007, you had to claim the loss as income. Also, if you are insolvent (net worth is $0) at the time of the loss, you don't have to worry about the bank & the IRS coming after you.

Don't take my word for it, just double check with your accountant or tax person, because I'm not sure if it is federal laws or state laws. So, don't worry about it if this is your first foreclosure and your net worth is $0. Don't file bankruptcy if you don't need too. Hopefully, this helps out a little bit. Oh, by the way, my house was also foreclosed last year so my tax person just put the value of my house on my tax form this year, but he said I'm lucky because the law changed in 2007. I didn't have any problems receiving my refunds.

[thao_yaaj83]

[delena]

i don't know exactly how to file for bankruptcy but maybe you can ask an attorney for advice. i know some attorney they do bankrup and can help people with that. yea alot of people are going bankrup because of the economy. well sorry to hear about your house, hopefully you'll find some where to live and buy another one in the future again. good luck with the bankrup.

[hlidra]

sad to hear that you are in a sitaution like that.. i dont know what to do no more also.. i have voulenterly give up my car because i was unable to pay my payments... i dont know what is going to happen next.. i havent heard anything yet too and they just towe the car abut two weeks now.. can anyone please help tell me what happens after this?.. i am soo totally stress out too.. too young to have bad credit!! urrggghhh!!.. i feel ya!

[thao_yaaj83]

hildra, sorry to hear about your situation. From what i seen, (happened to my brother) the bank will auction your car off and what ever they don't get they will send you a notice to go to court and try to collect the balance. Here is what happen to my brother......

He bought a 2006 corolla 3 years ago. His company closed down 6 months ago and he scouldn't afford his car payment anymore so it got repo. He still owes $12,000 on the car but it got auction off for $7,200.
So the bank got a judgement against him for $4,800 as a balance. He had to go to court and present his case infront of a judge. The bank wanted him to pay $4,800 or they will seek to garnish his wage. He conteroffer to pay $3,000 fo end the judgement and settle his debt. The judge over rule in his condition since he lost his job due to his company closing down. He paid the bank $3,000 and had to file $1,800 as income because it was forgiven debt.

Hope this make sense and hope it help.