Credit Cards,Home Loan question

[JustOverBroke]

Hi all,

Wonderful site lots of great information & really wonderful helpful people here.
I'm a first time poster.
My wife and I are strongly considering filing BK sometime in the future I'm at wits end with this.
We are at a point where we now have to buy gas and food on a credit card to make ends meet.
We are current on all credit card bills and mortgage at this time.
One bank that holds our Mortgage we also have a credit card with and a large balance.
Can the bank have any recourse against us with our mortgage like calling it due or messing with our fixed interest rate?
We held the card long before we did the refinance 3 years ago.
the Mortgage is currrent and has never been late.
Would it be best to refi with another bank and move my mortgage or would that raise red flags?
I'll have more questions in the days and weeks ahead i'm sure.

Thank you everyone for your help, support, and wisdom.

[JollyGG]

Some credit unions have what is called cross collaterization. Where they will attach other accounts, such as checking if you owe another bill to them or refuse to release a mortgage until the cc is paid off. However, this is really only common with credit unions and your credit card agreement or your mortgage paperwork would have to say the policy in them.
Most larger banks don't do this. For example, I am with wells fargo, I discharged two personal loans, and a cc with them, but had no issues with my mortgage, student loan, savings, or checking accounts when I declared bankruptcy and all were with the same bank.

So really the answer to your qestion kinda depends on your lender and on what your original loan agreement says. This is a good question for your lawyer as they have typically delt with bankrupty and a lot of different lenders.

[BKTango]

I just wanted to agree with what Jolly said and just add...a big welcome! Pull up a chair and sit awhile . You and your wife are at the point that my husband and I sat at for 3 years. Once you are having to use your cc's for normal things like groceries and gas so you can continue to make the payments to creditors you end up in a vicious circle that just seems to get bigger and deeper. So, taking this step, learning and looking into options now is the best thing you could do.

I suggest the simplest of things. Read...read....and keep reading. Learn what you can. Learn all you can. Learn what chapter of bankruptcy you would qualify for. It will drive you insane, you will learn far more on bankruptcy than you ever cared to, but in the end, you will be thankful you didn't skip a step.

I also suggest setting up at least 3-4 consultations with bankruptcy attornies in your area (they are usually free). After you have familiarized yourself with some of the process, these consultations will easier to understand and get helpful information from.

If at some point you and your family decide it's best to file, stop paying on your unsecured loans and use that money for your necessary living expenses that you have been unable to pay cash for, also you might consider using the money to pay for and attorney. Always....continue paying on any secured loans (car, home, etc.) that you intend on keeping. Of course you may have some secured loans that you must continue to pay on anyway.

Again welcome, and if you have any other questions, post away!