I sold my house earlier this year to avoid foreclosure and gave the new owner a deed of trust on part of the payment, $160,000, which is do in 5 years. I currently get $8,000 in interest each year which I am using to rent this same house from the new owner. At the time of the sale, I was behind on 5 credit cards. I was able to pay off 3 of these from the sale of the house because they took lower payoff amounts. 2 other credit card companies gave me a payment plan for a year. I also had cancer so I have a medical bill that I am still paying on. I own my owe business and am doing very bad at this time and the 2 credit card companies wont extend the payment plans. I also have 3 other credit cards that I was able to keep current. Right now I can not make it through this month, and I am 2 months behind on my rent, $1800, and a month behind on my oil payment of $1000. I will be unable to pay any bills next month because of no money coming in. I am looking for jobs, but can not find anything. Can I delcare bankruptcy in Virginia to get clear of these credit card payments and still keep my deed of trust on the sale of my house? Not sure what to do at this time.
1 Answer from Attorneys
Do you still have any ownership interest in the house or are you only renting? The answer to this question will largely determine the answer. Credit card debts and medical bills are dischargeable in bankruptcy. Leases can be assumed or rejected. Your recent income situation will be determinative as to whether filing bankruptcy is appropriate and if so, under which chapter; likely a decision between chapter 7 and chapter 13.
This is only general information and not legal advice, and you should not take any action on reliance of what I wrote in this answer. I would be happy to speak with you further about your situation and would need more information to tell you what the best move would be. Feel free to email or call me at [email protected] or 703.370.5555. The web site for my law practice is www.dipietropllc.com if you want to learn more about me and how I might be able to help you.
Thanks I look forward to speaking with you.
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