I am 47 years old and single mother to two teenaged children. I have a decent job and make good money for the area where I live. I bought a home in 2008, put $30,000.00 down on it (nearly my entire life savings). My house payments, insurance and taxes are equal to 2 weeks of my pay. SO one entire check barely pays my house payment.
I have $16,500 in credit card debts. Long story short, I got behind on my mortgage. I was trying to pay alittle everybody i owed (stupidly) and now my house is in foreclosure. I have been turned down for loan modification programs. (my debt to income ratio is too high??)
My question, do I file chapter 13 bankruptcy and try to keep my house? Or do I try to get a consolidation loan and pay off the credit card bills and catch up my mortgage and then try to sell my home for something more affordable? AT this point my formerly excellent credit is way less than excellent but probably not trashed as it will be if I file Bankruptcy and/or foreclosure.
Should I let my house go and lose my equity? Its too much house for my income obviously.
I am sick, scared and hopeless. I dont have family to borrow from. I worked two jobs for months until my health began to suffer. I sold my new car and bought a 10 year old one with 90,000 miles on it. I have pawned my jewelry, and anything else of value. I make slightly too much to quailfy for food stamps or other assistance.
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