Bankruptcy Law Questions? Ask a Bankruptcy Lawyer.
Okay, that is different. In that case, you can reaffirm the debts that you want like your home residence and the car, but the ones you are behind on like the condo, it is subject to foreclosure and the lender on the condo can start a foreclosure action and sale the condo but you would not be liable for any deficiency judgment from the sale if you file BK.
Also, if you file BK, then they cannot garnish your wages or freeze you accounts since the credit card debt and the condo debt would be discharged if you did not reaffirm them in the BK. Of course, you would lose the condo.
Before you file for bankruptcy you will need to decide what you can afford to pay and what you cannot. It sounds like to me that you can afford the home and the car but not the condo and the credit card debts. So when you file you will tell the court that you want to reaffirm the home mortgage and the car note and let go of everything else. Then the court will dischagre the credit card debts and the condo debt so you will no longer be responsible for them and you will lose the condo but get to keep your home and the car.
In the Chapter 7 you will likely lose the house since you are behind on the payments and the lender will not likely accept your offer to reaffirm but instead seek foreclosure which they can do at anytime.
In the Chapter 13, the lender will not be permitted foreclose on the house but you will instead enter into a 3 to 5 year payment plan to repay the past due amounts and still continue to pay the current mortgage amount and the car note. If you are able to prove that you have enough income to do this, the court will let you keep the condo and the car. Also, under a chapter 13, the court, depending on your income, may require you to pay the credi card companies some amount back under the plan. Usually it is pennies on the dollar.