forclosure story, When do I BK??? Lots of Q's

[dimmwatt]

I thought it would be a good Idea to help my friend buy a house here in southern California with my good credit (795 fico then). (512K house in socal purchased on an 80/20= 100% financing) DUMB IDEA! He skipped on the house after only 10 months. I geustemate its worth around 450K now. Auction will pull probably 400K?????

So the house is set to go to auction middle of next month. I am expecting the first lein holder to get almost all that is due to them, but the 2nd will be owed 100K+

I never lived in the house nor did I ever have any intention to. Needless to say, I dont feel tied to it in the slightest. I never made a payment to either lein holder after my ex friend moved out (or ever before that). I.E. no reaffirmation of the debt.

I also lost my job during this time period, so my income has been super tight.

Here starts the list of Q's

1. When should I file for BK and which one 7 or 13? I WANT 7!!!
Before or after the auction?

2. How do I protect my assets (401K about 7K, and my sons college fund 18K that is only labeled as such on the bank statements)

3. I also have other debts that I want to pay because I feel a moral responsibility to. Strange how I dont feel the same way about the house. Not really. My Q is; do I have to include these debts or can I go ahead paying them as normal? I have never missed any payments on them.

I'm sure I'll have more. Gotta go feeling sick.

Thanks all

[keepmine]

You must include all of your creditors. Nothing says you can't repay anyone you please post bk.
401K's are exempt from creditor seizure. Some funds earmarked for education are exempt as well. A lawyer can tell you if the funds are exempt the way they're titled now.
I'd file sooner rather than later. No sense dragging it out. If you quailfy, a 7 is preferable.
What is your income the last 6 months and your family size. That's what we need to help with the means test. Problem you'll have with a 7 is, you are still current on those debts. You can't use debt you wish to discharge as an expense so, it looks like you have some disposable income to fund a 13.

[dimmwatt]

OK, I did some reading, looks like I will pass a means test. 2 people in the family. YTD 8600 + a car sold another 6K. I can show a dwindeling bank account and proof that I have never done anything but deposit into my sons college fund. Its only a regular bank account with the title being my sons name. It was titled as such since its inception.

3K a month gross right now. 4.5K going out. That wont change till the wife is out of school in a year.

Last year was around 65K