Foreclosure in my future it seems

[dawn1620]

Ok, my husband and I are going to file BK - just have not decided which route to take, just met with hour lawyer yesterday who gave us our options. We are going to step back and really think about it for a few days before we make any rash decisions.

 

The BK is a done deal decision-wise but the house is our main question to be answered. We hoped to move in the next couple of years anyway back to his hometown - only 20 minutes down the road but excellent school system (main reason looking to move).

 

Also DD is in a private school but it only goes to the 5th grade - around $500 a month, she is in 3rd grade and has gone to this school since K5. The school system we are in pretty much blows. Our lawyer said the private school thing could be a problem when it came time for the meeting before the judge. My inlaws said they would pay the tuition if need be so that would be off our plates.

 

We are thinking of just moving to the town we want to live in and renting a house long term until we can purchase one again - we have found some that are renting for hundreds below what our current mortgage is.

 

Should we just walk away and start fresh? We have tried every way possible to pay these debts but are just digging a hole deeper every month - we've even gone to consumer credit to get caught up. But we have over $23000 in CC dept and over $40000 in student loans (we know those are ours until death).

 

Right now we just need some relief because the stress is killing us. But what exactly would happen if the house did eventually sell, especially for less than what our mortgage is? We owe $200K on it - bought in 12/2007 and have pretty much no equity yet. Will they come after us for the remainder and what are the chances of that happening?

 

We're worried that we'll get out from under all this and then in a year or two we'll have a lawsuit against us for $50k or more.