Want to get out from under house

[wrigley1976]

OK- here is by situation
filed Ch13 about 6 months ago
wrapped CC, mortage arrears and cars into 1 payment.
Was to pay mortgage seperately. The economy sucks so my salary was cut by more than $1000/month.
fell behind on mortgage and it was sent to an attorney. We need to come up with basically $13k to catch up with the mortgage. We have accepted the fact that we need to get out of our house.
What is the best way to do this? Short sale? Let it foreclose? Convert to a Ch7?
We want to keep the cars though.

[BassBoy]

You can convert to a Ch.7 and keep your vehicles, if you can qualify for Ch.7. Considering you lost $1K a month, I believe you would qualify. When you convert, you simply state that you will surrender the home. As far as the cars, keep paying the loans but avoid the reaffirmation if you can. When you reaffirm, you are basically excluding that debt from your BK, and if you default later, and the auto is repo'd, you're responsible for the unpaid balance (deficency). Some lenders are still allowing the Ride Through.