Bankruptcy Law Questions? Ask a Bankruptcy Lawyer Now.
If you have been served a summons you have 20 days to respond/answer. You should definitely take the summons and discuss your financial situation with an attorney who specializes in foreclosure actions. It may be that you just let the foreclosure go through, but you should have all your options before doing that.
As for filing banruptcy, you can do this and surrender the home, credit card debt will be discharged, and you can choose to reaffirm (keep) your car if you choose too. If the car is paid off you have an exemption of $1000.00 that cannot be taken by the bankruptcy court for a vehicle. Any money that you have, even if it is in a safety deposit box must be listed on your bankruptcy schedules. To conceal the money is fraud upon the Federal bankrutpcy court. No one is going to physically come in and get that cash, and the bank cannot attach it until they receive a deficiency judgment. The deficiency judgment is the difference between the amount you owe on the note and the amount they get at auction for the house. This is a separate action, and while they have the ability to seek a deficiency judgment it is not being sought on a regular basis by the banks as they just have too many to keep up with at the moment. This doesn't mean they won't however.
You should also seek a bankruptcy consultation, if you have the ability to make regular payments, you may be able to file a Chapter 13 which is a repayment plan of 3-5 years which would stop the foreclosure and let you get caught up with your mortgage payments. Credit card debt is rolled into this plan as well, and at the end of the 5 years your credit card debts are discharged and you are back on track with the house payments.
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).