Need Some Advice

[KatInVa]

[scorpion35]

no your home does not need to be in foreclosure for u to file bk.
how much are the cars worth?

[keepmine]

You need some legal advice specific to your state.
First of all, are you in a recourse or, nonrecourse dtate? In other words, if you're in a nonrecourse state your lender may not be able to sue for a deficency balance.
Also, that $6900 in the bank may be over whatever cash your state allows you to exempt.
Don't be in a hurry to file until you have those questions answered.
First things first. Your husband needs some sort of job. After all, you still have to support yourself regardless if you file bk or not.

[LadyInTheRed]

How long ago did your husband withdraw the money from the 401k? I believe if you deposit it into an IRA within 60 days, you can avoid penalties and tax on the withdrawal. Keep in mind, they probably withheld tax from the distribution. So, you would still need to come up with an amount equal to what was withheld to deposit to the IRA or pay tax and penalty on the amount withheld, which would be better than paying on the whole amount. I'm not certain about this, so research it before doing anything. A financial advisor at the institution where you open a new IRA can probably help.

[KatInVa]

My husband is retired from one job so we have his small pension to eat etc.. All we had hope for was to get a lower monthly house payment or SELL and downsize. Plus get a debt settlement from our credit card. At his age and health problems it's hard for anyone to hired him