Can I keep my home in this situation...help?

[BadSituation]

Hello everyone....newbie here.
This place is great I've quickly found a lot of useful information.
My question: I'm in California and seriously considering BK...I have about
$180k in unsecured debt that I'd obviously like to include if I move forward. But, I have approximately $125k in equity in my home. Unfortunately I can't qualify for a refinance. I have a first mortgage and a home equity line of credit and still have the 125k equity. I don't want to lose my home; how does this all work? I'm very concerned....I wouldn't know how to tell my three little girls that we are losing our home. Thanks in advance for any help!

[JRScott]

CA's homestead exemption varies based on age, disability and a lot of other discriminatory factors.

At its base System 1 allows a 50k exemption if single and not disabled, 75k for families if no other member has a homestead, etc

http://www.bankruptcyinformation.com/CA_exemp.htm

Not knowing more of your situation it is hard to answer exactly, this is a question you should ask in an initial consultation.

[BadSituation]

CA's homestead exemption varies based on age, disability and a lot of other discriminatory factors.

At its base System 1 allows a 50k exemption if single and not disabled, 75k for families if no other member has a homestead, etc

http://www.bankruptcyinformation.com/CA_exemp.htm

Not knowing more of your situation it is hard to answer exactly, this is a question you should ask in an initial consultation.

Okay, so if I understand this correctly. My equity can not exceed
75k...correct? I have a family of five. (myself, wife and three daughters) Are those exemptions noted for chapter 7 cases? I can't find that on the website you linked. Wouldn't chapter 13 better protect my home given my scenario?
I know you can't be completely accurate with the limited amount of info regarding my situation. Thanks a bunch for the input...much appreciated!

[BadSituation]

Could it make sense to quit paying creditors then attempt to settle with them for lesser amounts than what current balances may be? I'm current with all my creditors...never even late. I'm just afraid the hole I've dug has finally gotten too deep. It's never to late to file BK...correct?

Even worse, could I stop paying and wait for creditors to pursue judgements against me? Even with leins attached I can still keep my house...right?

As you can see I'd like to do anything possible to stay in my home.

Thank you!