advice Pls

[cafiler]

Hello Everyone I hope everyone is doing ok here inspite or despite of every ordeals we are all having about our financial circumstances.

I would like to ask if any of you here who may be kind to help me with my questions

Here it is:

Suppose that a person own a house and was baught for 450k and now the value is 200k. and has only been paying interest ever since.
Right now there is only one working and that is the wife. The husband doesnt work, and kids are just kids so they cant work, they are having a hard time paying the house. No credit card debts. just 1 car that they want to keep.

The reason for wanting to file BK because the mortgage was adjustable rate. and the lender told them that they will pay more , i guess the interest went up because they probably have 3% now its going on 5 or more. not really sure but its going higher than they usually pay.

We are wondering if she should file BK Chapter 7? if yes would it help?
or if she filed Bk and wants to re affirm how will it help? if decided to walk away what wil happen to the debts?

What about loan modification?
Pls I do need some help

Thank YOu

[Susan]

Suppose that a person own a house and was baught for 450k and now the value is 200k.

Put the keys in the mailbox and walk away.

[keepmine]

If you live in Ca. and the only debt is the house, a bk filing may not be necessary.
Ca. is a nonrecourse state meaning, the 1st mortgage lender can't sue to collect a deficency. If part of the loan is a 2nd or heloc, it may well be a different story.