New here,please help

[MEA2]

Just wondering how this all works...
Here is my story....We live in an expensive area of the country and our debt is starting to swallow us!
We have a $550 a month car payment
1st mortgage of 190,000
2nd mortgage of $50,000
cc bills totaling 50,000

What can we do?What debt is taken care of with BK?What are the steps?
Thank you

[SinkingFast]

If you want to keep your house and/or car(s), then those debts will be carried thru the BK. The only BK will take care of is the CC debt and any secureds you are willing to part with.

Also, the Court will look at your income vs your payment levels. If the Court says the car has to go, it'll have to go. You'll have to make other arrangements for transportation.

You may need to take some time learning, and looking at your overall financial situation to decide for yourself what you can and/or need to keep, and what you must part with.

I can tell you from personal experience, selling your things will be painful, but may be necessary.

[MEA2]

If you want to keep your house and/or car(s), then those debts will be carried thru the BK. The only BK will take care of is the CC debt and any secureds you are willing to part with.

Also, the Court will look at your income vs your payment levels. If the Court says the car has to go, it'll have to go. You'll have to make other arrangements for transportation.

You may need to take some time learning, and looking at your overall financial situation to decide for yourself what you can and/or need to keep, and what you must part with.

I can tell you from personal experience, selling your things will be painful, but may be necessary.

We could handle the car payment...does that make a difference?

[SinkingFast]

We'll need more info to help you out.

What State? Income level. Current market value of the home. Guesstimate there will do. Year and model of the vehicle. Mileage. Current loan amount. How's your income compare to the Median? Above or below?

http://www.usdoj.gov/ust/

I know it sounds like personal information, but it's necessary for folks to help you. Whether or not you can go for a Ch 7 depends on your income level. What you can and cannot keep is totally dependent on the State you live in. Each State has it's own exemptions. Some States allow you to choose between the State and Federal exemptions.

[DisneyGirl]

We could handle the car payment...does that make a difference?

You coud reaffirm and keep it. Or if you owe more than it's worth it may qualify you for a redemption loan. When we filed we reaffirmed our car and did a redemption loan on our minivan. The car was paid off in February and the van in Jan 07.