Help, I Am Going Crazy Over My Bills!!!

Question:
Hi, I am very short of a breakdown. I am currently being sued and have a summons from a lawyer for a credit account of 500.00. I am going to pay it so I don't have to go to court. That's the least of my worries. My 1st mortgage just sent me a Notice of default letter. I am due for aug, sept and oct. I plan on paying aug. on Thursday and sept. two weeks later. Now this all sounds innocent enough but here goes. I am trying to get Seabreeze Financial to give me a sub prime loan. I want 260,000.00. This will consolidate my 1st, 2nd and my car loan. My house has about 250,000.00 in equity. The bad part is my credit score is 499. It went up to 500 and I may get the loan. However I have a default on the first from 11/2002. The finance company said they need the note of default from a year ago in order to do the loan. It shows up on my credit report so I don't know why they need it. It is wasting time I could have the loan. Well yesterday I got a letter from my 1st mortgage saying I am in default now. Last thursday they told me if I got my payment in before the 15th of this month then I wouldn't go 90 days. Well looks like they lied. It's not the 15th yet so at best I am over 70 days late. And to top it all off, I got a call tonight from another Nat'l Credit Acceptance people and they wanted 1300.00 or I'll be sued and wage garnish. I am a first time homeowner. I bought my house6 years ago and 2 years ago I went on disability for 9 months and have never caught up. My 2nd did catch me up to current just last month. I don't answer my phone, people are calling me at work and I hide my car in my garage. I am basically on the run! Help. What can I do. I have weent to CCCS and everyone of the creditors said they want accept payment plans. I want to save my house, I want to get rid of my car but I called the other day and the BMW dealer said my car was worth 6200.00, the loan still out on it is over 20k! I'll never buy a car again. 1. Will bankruptcy help me? 2. I have tried to negotiate but everyone wants thousands of dollars right now. I make 3400.00 a month and 3000.00 of it goes to 1st, 2nd, and car. I have to live off 400.00 for everything else. I am single and have no kids. I need my house to live in. If I sold it, here in california no one would rent to me with my credit and I would be homeless. Does anyone have any ideas or help. I just want it all to go away!

Answer:
I'm posting Publicly, so everyone can slam away. I would be willing to do your 1st mortgage, right now, as long as your FICO is 500 or above. I don't care about anything else. We'll wrap the first, second, car bill & other crap into the first mortgage. I must ask first (and you should ask yourself the same) will the income improve anytime soon? You don't want to simply postpone the obvious end outcome. First, chill out. It ain't that big of a deal even though it feels like it is. It's just business. You are probably a very good candidate for a Chapter 7 bankruptcy. Before you do ANYTHING else, you should find a bankruptcy attorney in your area that will provide a free initial consultation. If you say what city you are in or near, someone here might be able to suggest a bankruptcy attorney in your area. Do NOT pay the $500 or do anything else until you talk with a bankruptcy attorney. You might be able to kiss off that $500 debt through bankruptcy and use that money to pay for your bankruptcy attorney to represent you. A bankruptcy filing will stop that lawsuit in its tracks. And, definitely do NOT do the refinance until you talk with an attorney. One reason is that if you roll your car loan into a new mortgage, you will have to pay off the entire $20,000 for the car. If you do bankruptcy, you might be able to kiss of the car, turn it back in, eliminate that payment completely, and not owe the balance between the car's $6,200 value and the $20,000 you now owe on it. As far as being able to rent another place if you decide to give up your house, you will be able to do that even after a bankruptcy. There are many renters out there that will rent to you. But, don't give up your house unless it really makes sense to do so. If you don't give it up, after bankruptcy you might even work out a deal with one or two people to share the house with you and pay rent for a while just to catch up and get the second mortgage paid off. The house is an asset that could go up in value and could become a future income stream for you. So, again, see a bankruptcy attorney immediately. If you are not comfortable with the first one you see, talk with one or two more. Then you'll know the whole scoop, and you will be able to relax.





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