As I write this, my house is being inundated with flood water. When it crests, it is expected that the waters will be 6 feet above our roof. Most likely, the house will either be demolished from the waters or will be a total loss. We have no flood insurance and 10,000-12,000 people in our town are in the safe situation right now. We live on what they call a 500 year flood plain and most people don't even have the option of flood insurance because it is a 500 year plain.
FEMA is supposed to come in and help, but we have no idea how limited that will be with some many people in the same situation. The city hasn't even been approved for individual assistance at this point.
We are thinking we are likely going to have to file bankruptcy to dissolve our mortgage. We owe $190,000 on the house. We only have student loans (which bankruptcy would not cover) and a car loan, which we would like to keep. We have (at the moment) outstanding credit and are very money conscious. I never thought in a million years that we were going to be in this boat, but here we are. We can't afford to pay on a house that is no longer livable or there and we need a place to live after this is all over.
On the so very positive note, we are safe. Our cats are safe. And we were able to bring most everything out of the house with us because we had time to evacuate. Gotta look for the positives :-)
Forgot to ask my questions (brain is not all there right now). Is it possible to file bankruptcy in this situation? What will we be required to do before hand? If we have savings at all, will that be taken? What about investments (retirement)?