Right now I have $150K of available credit through a variety of sources. My good credit score is about to be trashed because I can’t afford my mortgage reset after 5 years and there is negative equity in my home so I can’t refinance. Since my credit score will be destroyed can I cash out the $150K since the damage is already done? How long will it take for the debt to be discharged from my record? If I keep the cash in a box and don’t declare bankruptcy to say that I don’t have the cash, what is the worst that can happen to me?

What is the wildcard under the new laws and how can it be applied?

I need current info on the BP laws pros and cons. I have read some info but would like ne 1 with personal experience to share their knowledge. Thank you, Mark

Now that congress has passed the new bankruptcy laws that do not allow credit obligations to be totally wiped clean, this has given creditors free reign to file lawsuits for bad credit. The amount of lawsuits are jumping high as it is forcing people to file bankruptcy which under the new rules forces them to pay regardless. This use to be bad policy for creditors as it created bad business for consumers.

Do creditors have right to sue consumers with money they have made off of consumers? Should credit be regarded as an investment made by a creditor to a consumer and if that investment goes bad to not cry about it? Are in likewise manner people allowed to sue companies and stock brokers if our investments are lost for one reason or another? So if that cannot be allowed should corporations be allowed to sue consumers for their own bad investments?

Should this be allowed or should congress amend the law to disallow lawsuits for credit obligations?

Why would a guy tell me that he can’t afford to buy my house right now. In three months, he will have gotten his bankruptcy proceeding approved. Therefore, his debts will be gone, so he will be able to get a loan and buy the house.
Last time I looked, bankrupt persons could not get credit for 7 years, at least. Or, have the new bankruptcy laws made it possible to now go bankrupt and buy a house within 3 or 4 months of each other?
tlbrown…… I have put it on the market. And this guy is furious, He says we had offered the house to him first. He is afraid that someone will take it before he can arrange financing.
I dont care who buys it. I just want it sold. Could use that money to get everything else paid off. I am not willing to sit around for months, to see if he can come up with the money.
If he does get the money before anyone else does, I’ll sell to him.

Washington Mutual Inc. got what it wanted in 2005: a revised bankruptcy code that no longer lets people walk away from credit card bills.

The largest US savings and loan didn’t count on a housing recession. The new bankruptcy laws are helping drive foreclosures to a record as homeowners default on mortgages and struggle to pay credit card debts that might have been wiped out under the old code, said Jay Westbrook, a professor of business law at the University of Texas Law School in Austin and a former adviser to the International Monetary Fund and the World Bank.

http://www.boston.com/business/personalfinance/articles/2007/11/11/shift_in_bankruptcy_laws_staggers_mortgage_holders/

I am a first-time home buyer, and I was overwhelmed by the whole transaction. Are sellers required by New York law to let prospective buyers know if they are going through bankruptcy? I did not find out about the seller’s bankruptcy until after escrow was opened, when I received some paperwork from the title company. There was then an enormous hassle getting the approval of the Bankruptcy Court to sell the house to me.
Ok any solusion to this situation? my loan time running out and my interest rate lock expired as of to day 7/21/06 and the bank telling me that I have to pay $1400(1/8 of a point ) to keep it good for another 30 days … but there is no sign that the clossing day any time soon. Contract is up on 8/15…any advice PLEASEEEEEEE HEEEELP
Regards to all
P.s. I like all answers but I have to pick one ..cant chose all
THX

i am going to see a lawyer to try to stop my foreclosure tomorrow . my end date is july 3,2007. if i have loans that i am not the primary account holder do i need to take those to show the lawyer as well or do they not count to file. if by any chance i get a petition from the lawyer to the court by the end of day tomorrow will it stop the sale of my property the next day. people in my city are waiting for my house to forfeit. that sucks because i put alot of money to it. i am trying to sell the property to make a profit and bankruptcy is my last resort to pocket something. if i read correctly texas law states the courts can only take profit money only if i exceed over 15,000.00 in profit to satifsy my lenders . is this true… please help tomorrow will be a long day of ass kissing

Here it is, I was considering filing for bankruptcy and found a firm online that offered a free initial consultation. Half way through my initial consultation I was asked to pay a $500 down payment for a retainer fee for this firm to file bankruptcy papers for me. The phone call lasted about 1 hour. After hanging up I read some info that the bk attorney emailed me and decided that I was not ready to file for bankruptcy. I called the firm back asking for a refund as I had changed my mind, it was less than an hour since I hung up from my initial consultation, so I didn’t really expect it to be a problem. The attorney told me they would not give me a refund & if I tried to stop payment they would sue. Well, I hung up, called my bank and stopped payment and now 2 weeks later they are calling me and threatening “legal action”. My question is should I really have to pay them? They didn’t do anything other than the initial consult which was supposed to be free.
I live in California and I did not sign anything. I was not even sent anything to sign. The reason I say he did not do anything is because I did not sign anything that would allow him to start paperwork on my behalf. And as he did not set up any future appointments with me I fail to see how he could have turned down any other clients due to my “retainer”
Rob5279,
I’m curious why you think I’m in the wrong. Doesn’t a customer have the right to change their mind? Especially within a 24 hour period?

Or is it better to do a short sale..does this mean the bank will take whatever the home sales for as a settlement? I’m really confused but I got seperated and can no longer afford my home..what is the best options? Or is bankruptcy a solution? Although I heard with the new laws it’s not so easy anymore. I would still owe most of it. Is this true?