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financial problems

devourced  then forclosed on my house it went to oction gmac got all the $ owed.  citibank Line of credit was never paid $95,00 I owe 20,000 credit cards 25,000 child support.Never filed for bankruptcy i have been in highding. A process server left court pappers at my girlfriends house on the floor at the front door.child support takes half my paycheck.Will citi bank take the rest? If i dont go to court will i loose by default? Will this debt eventually go to my children? Can they get to my pension ? This was a line of credit on my house and i guess there isnt a lein on the property?In a nutshell what would u do if u were in this mess ?
  • October 15 2009 - Pacifica
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Answers (3)

move to florida. they can't touch you there. I would think, once its foreclosed , its foreclosed so the debt is gone. they had a chance to pay off the first to get the property but they didn't. So if you go to court, offer them a hundred dollars to settle the debt. if they settle, they will get the rest from the government and the remander will go on your taxes as income unless you are insolvent. if you are insolvent , you don't have to post the 1099 on your taxes. I'm not an accountant so recheck with your accountant.
always answer their letters within 30 days with  certified mail. you could drag them on past the 4 years so they can't ever sue you.
  • October 19 2009
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If you wish to put everything behind you and come out from hiding, BK7 is a legitimate option assuming you fit the profile.  It's designed to provide a fresh start and will require you also receive credit counseling.  You need to consult w/ a bankruptcy attorney to understand your options.  Some things like child support cannot be discharged.  However, most unsecured debt can.  If you rec'd a summons and you do not respond to it, the plaintiff will receive a default judgment against you.  Then, look out because they will start searching for your assets.  When they find your bank accts, they can attach these funds and have the bank fork over the funds.  Living in fear and in hiding is a terrible way to live.  Good luck.
  • October 19 2009
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Is Citi 95,000 or 9,500?    If Citi was attached to the house as HELOC and did not foreclose, they can still come after you.  (unless that loan was used to purchase the property as junion financing)

You can probably try to settle with them for pennies on the dollar.  You should talk to an attorney.
  • October 15 2009
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