(Source: Fox Business By Justin Harelik) – Dear Bankruptcy Adviser,
After 23 years in good standing with my mortgages, I am in foreclosure. I am 59 years old and ineligible for a modification, as my debt-to-income ratio disqualifies me. My first mortgage is approximately $42,000 and my home equity line is $98,000. In a short sale, my house would most likely sell at $125,000. I haven’t paid my mortgage in more than a year. I also have $6,000 in credit card debt and owe the electrical company around $2,000. I collect $650 a month in disability. My credit is ruined, and I do not see anything positive in the future. Can I file bankruptcy, or is it a waste of filing fees?
— DebDear Deb,
You may be able to avoid filing bankruptcy. However, I am not sure how you would pay back the $8,000 in credit card debt and utility bills with your current income.

While you could be a perfect “judgment proof” candidate (meaning you are a financially insolvent defendant), in which case there’s no need to file bankruptcy because you don’t have anything to take, you’ll need answers to three questions before making your final decision on whether to file bankruptcy.

Source: Fox Business By Justin Harelik

Published August 23, 2011

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