Undecided about Chapter 7

[troubled14]

Hello,


Thanks for providing this wonderful resource.


In 2004 I bought a 1 bedroom condo in Miami, FL. I have a first and a second both with SunTrust totaling about $118,000. Similar units in the building are selling for $80K-90.


I did the financing with SunTrust in Georgia but the closing took place in Miami, FL. I don’t know what state law this would fall under, FL or GA or if that even matters. I am a FL resident.


At this moment, banks in FL are not loaning money for condos unless a person has a 20% or higher down payment, good credit, good salary and the condo association is in good financial shape. (Good luck finding that in S. Florida).


Currently there is a tenant living in the unit but the rent does not cover the condo maintenance fee.


If I was employed this would not be a big problem but I lost my job last year. I have tried since February to speak to someone at SunTrust about getting some assistance.


The answer I get every time I call SunTrust is “we have a big backlog please call back next week”. I can no longer afford to pay for the condo.


I’ve been told that without a job I don’t qualify for a loan modification.


The letters I’m getting from SunTrust state: “If you have received a Chapter 7 discharge, and your mortgage was not reaffirmed in the bankruptcy case, we will only exercise our rights as against the property and we are not attempting any act to collect the discharged debt from you personally”.

Doing a BK sounds pretty scary to me, I’ve always had good credit.

I understand that if I file for bankruptcy there are negative consequences such as not being able to get a corporate job and not being able to obtain a loan.


At this point, I’m more concerned about protecting what little assets I have, primarily what's left of my IRA and some emergency savings. I don’t own any other real estate and I'm single.


I don't know when I'll find a job. Is filing for Chapter 7 BK my best option at this point?


I would appreciate any suggestions.

Thank you all and God help us all through these difficult times.

[Marshall Rosenbach Esq.]

Where in Florida do you live? I ask because it's best you talk to a bankruptcy lawyer to discuss this privately. If you don't know any bankruptcy lawyers, I am happy to give you someone's name depending on where you live.

[troubled14]

Hello and thanks for replying. I live in Kendall, Miami. I'll drive to Aventura, if necessary to speak to an attorney although naturally, I'd prefer someone a bit closer.

One more thing. This apt is an 'investment' property, it's always been rented.

Is it true that if I do a short sale on an investment property the amount of the debt that is forgiven by the lender will be considered ordinary income?

Thank you

Sleepless in Miami