Is it a big difference if I start missing payments before I have spoken with an attorney?
I will be getting legal help through this, but did not know if the timing made a huge difference as far as when I spoke with one. I know I cannot afford to keep paying for this place and it is too far upside down to think about refinancing. Next payment is coming due and I could pay another month, but it is delaying the inevitable.
If you know you have to let the place go. It is not a big deal. This will sound bad, but actually save the money for your attorney. Many times people meet with me and they are current on everything but have nothing in the bank, so we have to go a couple of months where he don't pay bills in order for them to save something up. In BK you almost always need some money up front so it is good to have a little saved. If an attorney just helps you fight off FC and you try the short sale route, the bank will want you to be behind anyway. So you are probably fine. Keep in mind, I'm not telling you to take on debt, I'm just saying what usually happens.
Assuming you're talking about filing for bankruptcy and trying to determine if you need to keep making the payments on debts. Generally, you'll not make payments on any debt for the 90 days prior to the bankruptcy unless you're intending to retain the asset related to the debt. However, there's great benefit to setting down with the attorney who'll be handling your case and getting his or her perspective based on your specific circumstances. The filing can happen any time but the adivce you get now will be invaluable.
Evan A. Nielsen is licensed to practice law in California. The information provided here is for educational... more
Evan A. Nielsen is licensed to practice law in California. The information provided here is for educational purposes only and is not intended as legal advice for a particular matter. This response does not create any attorney-client relationship with the author. For specific advice about your particular situation, please consult an attorney.