Option #5: File Chapter 13 Bankruptcy

The least drastic & more sensible of the two types of Bankruptcy for you to consider, Chapter 13 is suitable for those that are hard workers. Your assets aren’t frozen, but instead the courts will consolidate as many of your debts as they see fit and you’ll be given a new monthly payment. –No Debts are removed at all, you’re still responsible for every penny you owed from before, but they’ve basically refinanced it all into another 30 year loan that you’ve got to be responsible for just like you did the mortgage loan. –At a comparable rate.

Pros:

If you’re going to make the money consistently & in enough quantity, (Only a an attorney can tell you that amount) then this option could be acceptable for paying it all off, even though it accomplishes nothing more than you could do yourself with tight budgeting.

Cons:

Attorney fees will be added onto your bill pile, you’ll spend months in the legal system, there will be no delay of your mortgage repayment, and of course all the bad hits to your credit report will stay. There is clearly little advantage to this choice as well. Once again, if you owe more on your home than it’s worth, you’ll lose it here as well.

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