- July 31, 2008 at 5:54 pm #260924
Letting the house go and paying off the credit cards is backwards. We just went through bankruptcy this year. The courts require you to go through credit counseling when you file.
They told us that the first thing we should have done was stop paying the credit cards . They counselor and the laywer both said we should have been paying the mortgage and letting everyone ( creditors) else go.
File bankruptcy, it will eliminate altogether or tremendously reduce the credit card and other debt depending on how you file. You can still keep the house in most cases, if you can make the payments.
Your credit will be ruined but you will still have the house.
I strongly suggest that you consult a bankruptcy lawyer before you do anything.
Consultations are usually free. We consulted two lawyers before we took the plunge. For something this serious, you need an experts advise.
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