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 bankruptcy court.
Attorney fees are additional and can vary widely.
The consequences of bankruptcy are significant and require careful consideration. Chapter 13 allows you, if you have a regular income and limited debt, to keep property, such as a mortgaged house or car, that you otherwise might lose. In Chapter 13, the court approves a repayment plan that allows you to pay off a default during a period of three to five years, rather than surrender any property. Exempt property may include cars, work-related tools and basic household furnishings. You can receive a discharge of your debts under Chapter 7 only once every six years.