Bankruptcy, 401K & a lot of debt
I am sick at my stomach as I type this, and don't have anyone else that I can talk to about this. Here's the situation:
My husband and I filed bankruptcy and it was done on 1/1/02- only 3 1/2 years ago. We have been building our credit back again,and over the course of time, now find ourselves in about $13,000 worth of credit card debt. We have made all of our payments on everything, but in the last several months, things have gotten increasingly harder. It's now to the point, where there isn't enough money to pay everything. My husband works an hour a way, and the increasing cost of gas has been a killer for us. We have 4 younger children that I am constantly having to get to and from places, and that kills me every time I have to fill the vehicle.
Anyhow- back to our big problem. We have all of this credit debt, large mortgage that we cannot take more money on, car payments,etc. We already have a loan on our 401K from a couple of years ago. We still owe back $4000 to it. We do not have escrow on our mortgage and owe $2400 in taxes and the mortgage company sent us a letter threatening a tax sale. We have no money to pay the taxes, BARELY paying the credit cards, and really no idea what to do. My husband has over $35,000 in his 401K (we are both 38) but they will not let us get to any of it unless we cash the whole thing out and are in foreclosure. At this point, I don't see what else we can do except to wait for them to try and foreclose because of the taxes. We can't lose the roof over our head. We have 4 children to take care of and have made mistake after mistake. I simply don't know what to do, and feel helpless. If there is anyone that can give me some advice, I beg of you to do so... please! :(
Chapter 13 might be the answer
You can't file another chapter 7 bankruptcy yet, but you might try chapter13 instead.