₪₪₪ Is bankruptcy worse than foreclosure?
I’m in a pickle. And need some advice. The bankruptcy attorney told me bankruptcy is a better option than foreclosure in every way, as far as credit, and saving my ass, even though my credit is tanked already. My questions are this:
1. Is bankruptcy “better” than foreclosure as far as credit goes, although both are horrible…
2. Should I foreclose or bankrupt in your personal opinion?
I am 18 months behind now. They finally rejected my loan modification, I have been requesting forbearance for quite some time now, and they never said anything to me, fucking annoying. I just found out my foreclosure sale date is 8/03/2011. I owe 47k to catch up. My house is probably worth $420-$450k but would have a hard time selling in time. Here is my house debt:
$320k mortgage
$47k late payment debt
$85k second mortgage
$62k tax lien on my house as well.
I also have $59k in collection debt from an old CC and business loan I was never able to pay off.
As you could see, I’m nearly 500k in debt. I’m seriously considering bankruptcy because apparently it pays everything off except for my taxes, and I can then get on a repayment plan with the IRS.
Is it better to have all collections discharged and my mortgage with bankruptcy? Or just let my house foreclose, and take that on my credit instead and try to pay all my debts off myself. I want whatever is better on my credit report. I want to start repairing my credit ASAP.
As you can see I’m backwards on my house by about $15-$30k not including my tax lien. The bankruptcy attorney also says it’s to late to save my house even if I could afford the $2200 first mortgage and $640 second mortgage. So I believe regardless I lose my house… Unless I come up with $47k to pay my first mortgage, and I’m still in debt to my second mortgage, by I have no idea how much… I haven’t even spoke with my second mortgage in 18 months…
Category: IRS Problems
