When to file?

[moo]

Short history: I have been unemployed for 11 months now. Credit cards, Home equity loan are all 6+ months with no payments. I found out that I will be going back to work(Yaaa!) I will be making about 50,000 a year salary. I have a family of 4. I really want out of this house and we are about 70,000 underwater compared to what we owe versus what it is worth.

How much a year can you make and still qualify for Ch7?

I kind of feel guilty because I could get back on track with payments, but there is a part of me that says this could be a new start and just follow through with filing.

I don't know if I should run out and file now before my income goes up or just wait. I am all wound up and don't know what to do..

[blessed]

Call a few attorneys that will do a free consult and go see them this week. The good ones will answer quite a few questions before they want money.

[momofthree]

How much debt do you have?

Median income varies by state. You can look them up here, but with a family of 4, at $50k you will be below median in any state. http://www.justice.gov/ust/eo/bapcpa...come_table.htm

[moo]

We have about $18,000 credit cards, $31,000 home equity loan, $77,000 first mortgage loan, $8,000 Car loan, $40,000 student loans.

We plan to reaffirm the car and plan to NOT reaffirm the house. I do relize we must keep the student loans.

[momofthree]

Your home is only worth $38k now?

[moo]

Yes, it is very sad. What makes it worse that is if someone is willing to buy it. Most of the homes (forclosed) just on my block are selling for 7-8000. Nobody would spend even 38,000 on a house if they can pick from 4 other houses on the same street for that cheap.