Bankruptcy Update

So I heard back from the attorney my partner retained.  He was not exactly pleased as punch with me but he was to the point.  Simply put by writing the Judge I have ‘red flagged’ the case and if I stop paying there is a possibility the Trustee would enter an order to have the house sold so that the creditors could get paid since I was no longer paying each month.  I would be evicted from my own home. 

See I didn’t want to cause any problems I simply was saying hey this is a huge burden on me and I want to get rid of it.  No one will help me.  It just feels like legalized extortion. 

There is a little more than a year to pay before we could approach the court for a Hardship Discharge.  It’s either pay or part with $4 thousand dollars.  I think it would be smarter to pay it monthly because if something goes awry with the house then I can simply stop paying everyone.  Then that money is truly mine. 

I thought about transferring the house into my name but I am told that won’t stop any legal action.  If they want the house they will get it.  Lock, Stock and Barrel.  This is tantamount to paying a bully my lunch money for “protection”.  Sucks!

So perhaps I will be paying after all.  I don’t have plans to send any money this month but they might get something next month. 

An attorney friend of mine explained it to me like this.  Say money was no object and you parted with $20,000.00 to lend to a friend to buy a Firebird.  Your friend gets the car and enjoys it, he is paying you but suddenly he dies.  You see his son driving all around town in the car but he is no longer paying you.  Would you make a move for the car?  Yeah, I probably would.  Well that is what the creditors are doing.  He owed them money and it’s time they get paid back.  Right but it was Him that owed the money not me.  Yes, but you are living in his house which is his only asset prior to death so it’s like your driving the car but you don’t want to make the payments.  Okay, so I get it.

I then said what would you do if you were me?  Without missing a beat she said….get rid of all of those cats, save that money, make the Bankruptcy payment, put the house up for sale and look for a new place to live.  Cut expenses where you can.

With the Bankruptcy payment I would have to continue it until it was discharge or a hardship discharge was granted.  Otherwise whomever the house would be sold to could be evicted at which point they would be coming after me personally.  They would want their money back plus damages.

Just a messy situation no matter how you look at it.  I am not exactly thrilled.  What are your thoughts?  I am curious to know if you were faced with my dilemma what you would do.  I’m responsible ultimately for the decision I make.  I am just interested in getting advice.

Thanks for reading.  TTYL