My wife is filing for chapter 7 personal bankruptcy. She has run her own business, set up as an S Corporation, for over 10 years but now has accumulated enough debt that it doesn't make sense to continue operating the company based on the declining revenue. Most debt is credit cards, but some are personally guaranteed. To relieve the debt, she has been advised to file personal bankruptcy.
We have an attorney for the BK filing and recently received a letter to reaffirm the second mortgage (home equity line of credit). Both my wife and I are cosigners for both mortgages. We plan on continuing to pay the primary and second mortgage since the combined mortgages are about 70% of the property asset value (30% equity), and I feel that we can continue making payments on both loans, albeit more difficult without my wife's business income.
So, my question is should my wife sign to reaffirm the second mortgage? Pros/cons/options? This appears to be a common question in Chapter 7 BK and typically I see a response that it rarely makes sense to do this.
We have an attorney for the BK filing and recently received a letter to reaffirm the second mortgage (home equity line of credit). Both my wife and I are cosigners for both mortgages. We plan on continuing to pay the primary and second mortgage since the combined mortgages are about 70% of the property asset value (30% equity), and I feel that we can continue making payments on both loans, albeit more difficult without my wife's business income.
So, my question is should my wife sign to reaffirm the second mortgage? Pros/cons/options? This appears to be a common question in Chapter 7 BK and typically I see a response that it rarely makes sense to do this.