Expert: Mark J. Markus- California Bankruptcy Attorney - 1/8/2009

Question
We just purchased a home 2 months ago and the monthly payments are only about 100 more than our rent was. So we thought that we would be ok.  I have since been trying to find money to pay all our bills. I had NO IDEA our credit cards ( and a consolidation loan that did not work out like we planned) added up to the total it is.  I am humiliated to say that it is over 50k.  How soon should we file, and would we be able to keep the house if we tell them we will pay the mortgage payments on it. The house payments would not be a problem if we weren't paying more to the cards than our house payment is. I can not believe we have gotten ourselves into this.  We have not used the cards or anything in over 6 months or longer in some cases, I just had not sat down and added them all up and had NO IDEA that we used them that much for our real estate advertising and foods. Please help. I canot believe that you wonderful folks are helping answer so many questions, free and helping so many of us when we need it most. Thanks Susan

Answer
Bankruptcy is a definite possibility, but you need to have a comprehensive consultation with a bankruptcy attorney in your area to assess all the necessary issues.   You can probably keep your house as long as you can maintain the payments on it, but it really depends on the equity in the property and whatever exemptions you have available in the state where you live (or in whatever state the applicable exemption laws would be).   See http://www.bklaw.com/exemptions.html for more information on exemptions.