[Fleri13]

My name is John and my question is this.

I am in a position where bankruptcy is most likely my only option. I am a home owner with a property that has turned up side down it it's loan to value ratio and also have a lot of small debts which have affected my credit in a negative way putting my score to about a 590 - 600 range.

I am planning on moving very soon and renting while I repair both my credit as well as getting my finances back in order. I am wondering if I am better off filing bankruptcy on the home loan as well as the personal debts together or just letting the home go into foreclosure and tryi to pay of the personal bills after the fact.

I would like to purchase another home in the next few years if possible and would like some input as to the best course of action.

Please help.

[xphelper]

The laws have changed dramatically for those considering bankruptcy. Specifically, you may not be released from all debt if you file under the new rules. Right now, your credit score doesn't seeem too bad and can probably be improved if you can avoid bankruptcy and continue to pay your bills. Now, I don't have any first-hand experience with debt consolidation but I do see many advertisements on TV about free debt counseling and consolidation. I'm sure these companies are getting a piece of your pie but if they can decrease your total montly payments by a substantial amount, then why not give it a go? In my opinion, bankruptcy or just walking away from your home is not a good thing for your credit score and will most likely prohibit you from buying another home for at least 7 years.