Expert: Terry Leeders - 10/21/2008

Question
I have two homes in NY, one is a one family home I live in and the other is a two family home I rent out.
on the first I have a mortgage and an equity line, on the second home I have a first and a second mortgage.
I also have more than $ 25K in credit card debts and a construction loan debt (gone sour ) for $ 46K. My husband lost his job and we cannot keep up the payments. I was thinking of filing bankruptcy to include some of the credit cards, the construction loan (I own the land however), and the second home mortgages. Want to keep some of the credit cards debts and the single family home and keep paying the mortgage and the equity line on it. Would it be possible? If I file bankruptcy to include the above, would i end up with a lien on the single family home I own? Would I have to give that up too? Please advice I am desperate.

Answer
To answer your several questions:
1. all debts must be included, so you won't be able to 'keep' unsecured debt without court approval.
2. the court will look to see if you have any assets with equity that can be liquidated to pay your debts, so any real estate that has equity, is at issue.  speak to a local bankruptcy attorney to review what can be exempted in your case to protect the assets you do have.
If you want to discharge debts that are liens on property, the asset will be liquidated to pay your creditors back.