I’m recently divorced and have $80K of unsecured credit card debt. I have not made a payment on any credit cards or my 2nd mortgage in over a year.
I’ve consulted and retained a BK attorney, but I’m now having 2nd thoughts. Do I have any other options? I don’t make enough money to pay ALL of my bills each month (including the cc debt and 2nd). But I have been able to pay my 1st mortgage, car, insurance, groceries, utilities and taxes. The only reason I have been able to do this is because I’ve depleted my savings and 401K.
In Aug 2009, I was able to modify my 1st mortgage. But I have not addressed my delinquent 2nd which is around $200K (I’m not even sure where it currently stands). The balance on my 1st is $569K and my home is supposedly worth $640K.
Moving forward, I am getting a roommate who will move in in January, so that will help a little, but not enough to pay for the credit card debt AND my mortgage.
My questions are:
1. Is BK my only option? Is it my best option?
2. How should I address my 2nd mortgage? I do NOT want to lose my home.
Thank you for your time.
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