Question About Bankruptcy 2nd Mortgage Loan .
Can someone explain some bankruptcy options for us?
We are NEVER late, we never have collectors calling but we live pay check to
pay check.
We made a bad mistake (in our opinion) and took out a 2nd mortgage to pay
off credit cards and it just seems like it was a worse option for us. Can
bankruptcy be declared on just that one loan? Since it is a 2nd mortgage,
could we loose the house? We want to pay on the house and car but this one
loan is causing us problems in getting ahead.
You can't file a bankruptcy on "just one loan"...you have to include all of
your secured and unsecured creditors in either a Chapter 7 or a Chapter 13
petition.
If you want to pay the house and the car, have you considered a Chapter 13
bankruptcy? Under this plan, you would pay (perhaps a portion) or your
unsecured debt in a court sponsored repayment plan. This would allow you to
keep both the house and the car.