Wanted to get some opinions, we are maxed out between credit card debt, personal loans, 401k loans, student loan debt, and a second mortgage. We currently have exactly enough income to pay bills and eat, but nothing for anything that comes up and we are at the end of our rope. So the question is, we currently owe about $185k on our mortgage and $70k in our second mortgage and our house is worth around $400k.
Our absolute last ditch option before filing chapter 13 is to try to refinance our second mortgage to pull more equity out of the house and consolidate down some of the debt. It will give us a little breathing room, but I don’t know that it will be enough and we could end up right back here having to declare it in a few months or a year anyway.
Are we better off just cutting our losses and declaring it now? Will it hurt our case if we have more debt tied up in our second mortgage? Or will it hurt it if we still have some equity in the house? Due to our income and the amount we have in loans that chapter 7 doesnt factor in, it would most definitely be a chapter 13 filing.
submitted by /u/GrimGrinningGhost123
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