Want to file Ch7

[debt09]

Hello everyone, new to the community! Here is my story in Southern Cal;

I have two properties;
(1) Loan $712,000 main residence, worth $690,000
(2) Loan $564,000 rental, worth $480,000
Total HELOCS $200,000 on both properties.
Total credit card debt $140,000, wow.
Income approx: $80k a year.
Married with child, but have separate bank accounts and different last names still.

Just this month, I stopped paying on everything (CC's and Mortages). Want to file Ch7 and keep both properties if possible? Do I have a time frame on the HELOCS can they already start a foreclosure on the 1st mortgages? Only being 7 days late on one of the HELOCS I already got a letter stating that if it goes past 30 days they will close it and charge it off. The HELOCS are on an automatic withdrawal and I never keep money in there until the day it is drawn. The reason I stopped paying the mortgages is because I need to do a loan modification and they need to be late in order to get that ball rolling. What should I do Loan Modification first and then file ch7 or vice versa? Thanks for your help.

[debt09]

Forgot to add that the wife got laid off making $60k a year to boot. Now I have the burden of all the payments. I want to file separately on the ch7. All debts and loans were incured before we got married and we have separate accounts and last names still. So want to keep her out of all this and preserve her credit. Your help would be greatly appreciated, thank you.

[Trixie007]

It's very unlikely that the HELOC's would actually pursue a foreclosure, as the first mortgages are upside down. We have two homes in foreclosure right now (or maybe one already finished? not sure) and one of them, the first is about 320k - est value 380k, and the second allowed the first lien holder to do the foreclosure.

[eddiep]

you have to be current on your mortgage if you want to keep it in chapter 7. They are making some changes to the chapter 13 laws that may be VERY helpful to you, you should definately look into that.

My lawyer wants the modification done before we file chapter 7.