Big Decision

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    • #259175

      I am new to the group and have been lurking for a while, but getting

      good information from it!

      I saw a recent post about bankruptcy. I filed Chapter 13 a year

      ago. I am a single mom of 3, with child support that is spotty, at

      best. He is currently 7K in arrears. I also recently had a job

      layoff and then a worker’s comp injury at the new job, within months

      of each other in 2006. I tried my hardest to juggle everything, car

      payment, mortgage, teenage kids, credit card debt, daily living….

      and realized I was only getting deeper and deeper. I also had the

      notion that economically, the nation was getting worse (not that it

      took rocket science to see that) and I needed to take action as soon

      as possible.

      I have been in Chapter 13 a year now. I originally opted to keep my

      car and home, however, I made the decision last week to amend my plan

      and surrender my home under my bankruptcy. It is a large 4 bedroom

      antebellum. My utilities alone are in excess of $400/mo and I have a

      1st and 2nd mortgage. I tried for a year to make it work, but

      realized it wont, so I am letting the house go and we are moving into

      brand new townhomes in town.

      Even though the rent is $25 a month more than my mortgage payments,

      the new place will be all electric and energy efficient, which will

      eliminate my gas bill, to the tune of $130 a month and my electric

      should either go down or stay the same.

      I took many other factors into consideration as well, the

      neighborhood my house is in has gone downhill fast. Even if I waited

      until after my plan is discharged, I could not sell my home for what

      I owe and would likely take a $40K loss on it, which would pretty

      much leave me where I was before my bankruptcy. This way, when my

      plan is complete, I will be completely debt free.

      My two older kids will be graduating and moving out in the next 4

      years. That would leave me and my youngest in a 4 bedroom home,

      which is too much.

      It was a tough decision to make, but I really think it was the best

      one. While we wont be significantly ahead on a monthly basis

      financially, we will be in the long run. My monthly bills will be

      easier to gauge and control, since I wont have the extra and

      sometimes unseen costs of home ownership to deal with, either.

      Has anyone else had a similar experience? Any advice for our

      upcoming change to help get “ahead” a little?

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