Some nonprofit organizations charge little or nothing for their services. Carefully consider a second mortgage or home equity line of credit. While these loans may allow you to consolidate your debt, they also require your home as collateral. If none of these options is possible, bankruptcy may be the likely alternative. Each must be filed in federal court.
Attorney fees are additional and can vary widely.
The consequences of bankruptcy are significant and require careful consideration. Chapter 13, also know as a reorganization, allows you to keep property, such as a mortgaged house or car, that you otherwise might lose. Reorganization may allow you to pay off a default during a period of three to five years, rather than surrender any property. Chapter 7, known as a straight bankruptcy, involves liquidating all assets that are not exempt in your state. Exempt property may include work-related tools and basic household furnishings.