Foreclosure on Credit, Should I file BK?

[Ebates]

I have a delima and this seems like the right place to ask this question.

I have a home in Las Vegas which I am trying to short sale (not my primary home, just want to get rid of it), which I believe will ultimately end up as a Foreclosurer. I lost my job 10 months ago when my industry took a crash due to the economy and have been burning through my savings to support my family.

Now that I am working again my payments are the same but my pay check is 1/2 of what I use to make, so its a struggle. I have almost depleted my savings and come to a fork in the road. I have about 25K in credit debt and my credit card company just raise my interest rate so high I can't possibly afford the new monthly payment. I have tried to get them to help and they said thats the way it is and when I check the internet, this is happening to millions of people.

So here is my question.

Since I will have a foreclosurer on my record, is it worth trying to work to pay off the credit card company or just file for BK and start over.

I have always have perfect credit (790) and this is really bothersome to me. I buy cars every 2 years and always got the best rates, so I want to try and save my credit, but with a foreclosurer on there, will it really matter if I pay off the credit card or not?

My credit is already shot and need to get on the road to rebuild it and I can probably get $25,000 to pay off the card, but that will be my entire savings and would leave me in a more volerable state.

Sorry to ramble on and advice would be appreciated!

[awayalways]

in my experience, debt never goes away unless you pay up or bankrupt it. so if you have any deficiency on the foreclosed home, some low life will try to collect it someday from you. but it sounds to me like you are in pre-foreclosure. so whether you file or not, your credit is already trashed. your fico may actually get better after you file and discharge your debts. but filing is a personal decision and the best advice anyone can give you is #1 just remember that debt never goes away on its own. and #2 if you have any assets like the 25k you mentioned, move it into the exempt asset classes (legally) asap. (lookup your state exemptions)