| No one in his or her right mind would ever want to | | | | payment, that could reduce your monthly payment to |
| declare bankruptcy unless his or back is against the | | | | just $2,300. The difference is only $200 per month. In |
| wall. But if the situation becomes dire, bankruptcy can | | | | the grand scheme of things, that $200 should not |
| and will help you financially and give you a "fresh start" | | | | make or break you. Instead of worrying about the |
| in life. There are many reasons why people ended up | | | | down payment on the house, you should be concern |
| filing for bankruptcy. A major reason that can cause | | | | about the $2,300 or $2,500 monthly payment. |
| someone to apply for bankruptcy is the inability to pay | | | | Only if you can afford the common expenses and the |
| for the house that he or she owns because it is just | | | | monthly mortgage payment, then you should think |
| too pricey. Some people (I am a prime example) | | | | about buying the house of your choosing. There are |
| purchased their homes at the height of the real estate | | | | some other questions you should really ask yourself |
| market. The problem is not so much that they | | | | before purchasing a house that can make a big ding in |
| purchased their homes at the highest price possible, | | | | your financial status, and thus increases your chance |
| but the problem is that they purchased the house that | | | | of declaring bankruptcy: |
| they CANNOT pay for. | | | | - If you are a multiple income family, and someone |
| Like most people, I did not appropriately create a | | | | loses the job, can you still pay for the house? |
| budget and estimated that I could pay for the house. | | | | - Are you paying for the real estate taxes yourself, or |
| Years went by and I was just merely able to afford | | | | is it included in the mortgage payment? If you have to |
| this house I had purchased. In the fall of 2008, with the | | | | pay for it yourself, can you come up with this tax |
| collapse of the financial market, my whole world fell | | | | responsibility on a quarterly basis? |
| apart too. After my wife was laid off from work, I | | | | - Are you guessing that the real estate market will |
| ended up being the only income provider of the family. | | | | proceed to thrive and you can just flip the home for a |
| We had just enough to pay for everything as a 2 | | | | tidy profit in a few years? |
| income family, but with the loss of one job, we were | | | | - If there is an unusual one time expense (like a big |
| having a hard time paying for things. In order to | | | | medical bill), can you afford to pay for it? |
| "prioritize" the various debt, I started being delinquent | | | | If can comfortably pay for all the numerous "special" |
| with some payments in order to pay for the "true | | | | expenses besides your normal monthly expenses |
| essentials" of our every day living. Sometime in mid | | | | such as food, utilities and entertainment, then you |
| 2009, I consulted a bankruptcy lawyer and decided | | | | should certainly be a proud homeowner. Owning a |
| that filing for bankruptcy shelter is my best alternative. | | | | house is a great way to amass wealth over the |
| What I have learned from this mistake | | | | years. It is essential for you to budget every possible |
| Do not stretch yourself too thin. Buy a house you can | | | | expense associated with the ownership of a house. |
| pay for. You should not buy a house just because you | | | | One missing expense can snowballed into a bigger |
| have the down payment for it. It should not matter if | | | | issue and put you on the path to bankruptcy. In the |
| you can put down 10%, 20% or even no money down, | | | | case if do find yourself in a financial bind with a house |
| you should be concerned that you can afford this | | | | that you cannot afford, you should look to apply for |
| house from month to month. If you are buying a house | | | | bankruptcy to get permanent relieve from the |
| with no money down but with a monthly payment of | | | | creditors. |
| $2,500. If you can pay upfront of 20% as a down | | | | |