I am procrastinating, I have three more lines to fill in on my Bankruptcy forms. Three lines to freedom, I have been avoiding writing about it too. I am ashamed. I thought I could fix this with out bankruptcy…I felt like if I had to file bankruptcy after foreclosure I didn’t deserve the financial freedom I so desperately longed and worked for. I was wrong.
Lets start at last June- after my surgery and Bretts broken elbow and surgery the medical bills started pouring in, then we were hit with a brick (for lack of a better word). Our second mortgage was going to sue us for $75,000. Ouch. We started to search desperately, we had so many questions and so few answers. The first was…
Can I file bankruptcy after foreclosure?
Yes, Yes, YES!! Yes, you can, we are. Not only can we, but we will be getting rid of virtually all our debt. We don’t have student loans or IRS debt, which are both exempt from bankruptcy, so we don’t have to worry about that. Although the prospect of having to sell all our belongings (which are few and far between) to pay back debt makes me very nervous!
If I can file bankruptcy after foreclosure, which chapter do I file?
This was our next question, we researched and then decided we should be filing Chapter 7. Chapter 7 is also referred to liquidation case (hence my apprehension). Our lawyer basically broke it down like this- we would fill out forms HONESTLY and then we would be assigned a Trustee who would then decide what was exempt and non-exempt assets, based on a certain amount of equity in our property (furnishings, personal property, vehicles, life insurance, etc.).
Now that I know I can file bankruptcy after foreclosure, who do I contact?
I called every bankruptcy lawyer in the Denver/Boulder area and decided on a lawyer in Erie. He seemed to know his shit and had the confidence I lack in this situation. Bankruptcy lawyers definitely vary in price, the can cost at little as $900 and as much as $3000, ours is about $2400, he seems really well versed in our type of situation so we opted for him.
Can I file bankruptcy after foreclosure and ever buy a house again?
This was my final question, which was subsequently answered in a packet of papers from our attorney- we are looking roughly 4-7 years before we qualify for a loan again, hopefully since we will be debt free and living frugally we will be able to save a decent down payment by then.
Our bankruptcy still makes want to cry, it makes me nervous and I have a lot of anxiety surrounding it. This doesn’t mean it isn’t the right choice for us right now, it is. It means I haven’t done this yet and I am afraid of the recovery or what it will look like for us in the future. Honestly I am kind of scared to be debt free, I am afraid I may make the same bade choices again and forget all that I have learned. I most likely won’t because I am such a freak now, but one never knows.