Is bankruptcy my only option

I own a house on which I already have a home line of credit on that is at the max amount. With the home line of credit and the mortgage I owe $495,000. My other debt including my wife`s is $130,000. The house is worth $630-$650,000 should I sell, try to consolidate or declare bankruptcy. I earn $125,000/year as income.

Posted on Thursday, March 5, 2009 | Filed under: Bankruptcy
 posted by Questions @ 7:43 pm 1 Comment
1 Expert Comment:

 At March 6, 2009 | 7:22 am , Barton Goth, Trustee in Bankruptcy Said...

Based on the amount of equity in your house and the income you earn, a bankruptcy likely not be the best option. As the payments for the bankruptcy are based on your income and your are only allowed to have up to $40,000 equity in a principle residence, if you filed bankruptcy it is likely your bankruptcy cost could be substantial enough that it is not worth filing a bankruptcy.

You may be better off selling the house, or alternatively if you want to keep the house you may want to look at paying the majority of your debt using a Division I Proposal. If you are interested in more details relating to the proposal you would need to contact me directly using the green email box above.

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