What to do?

[lost in AZ]

I will get straight to the point and avoid the boring details. I now find myself with a radically reduced income due to the economy (down from 175k two years ago to 50k each of the last two). I have lost my home that had a first and a HELOC to foreclosure. I live in AZ, which is a non-deficiency state so I am not worried about the first coming after me, but the HELOC was for 158k, which has been charged off. I have 40k in CC debit, 95% of which was from trying to maintain the mortgage and a business. I am barely making minimum payments (as all the once low rates are now 28% plus). Additionally, I fear a lawsuit from the HELOC will be coming soon?
Question: is better to just file now or wait until the HELOC starts collections or files a suite? Any thoughts would be appreciated.

[lrprn]

Given that your home has already been foreclosed on, why are you delaying? Knowing just what you've shared with us, it makes sense to file bankruptcy now. Waiting to be sued when you are barely making it from day to day while your debt is not being reduced significantly and your credit cards are slowly killing you every month....what's the point?

[lost in AZ]

Thanks for the thoughts. I do appreciate it. Because of my ignorance on the subject, I am afraid that if I file now it may not cover the future actions of the HELOC lender. Do you know if the bankruptcy will halt future action on that debt? Also, do you have any suggestions on finding a good attorney? Thanks

[StartingOver08]

Thanks for the thoughts. I do appreciate it. Because of my ignorance on the subject, I am afraid that if I file now it may not cover the future actions of the HELOC lender. Do you know if the bankruptcy will halt future action on that debt? Also, do you have any suggestions on finding a good attorney? Thanks

Yes the BK gets rid of the HELOC as you are discharging the debt. The asset is already gone. Get rid of all this debt by filing to get your clean start. The HELOC can not come after you for discharged debt - if they do, you can bring sanctions against them.

[lost in AZ]

thank you for your reply.