Generally speaking life insurance policies - likes annuities and pension plans - are protected from the likes of creditors and in a bankruptcy proceeding.  Some states - such as Florida - specifically protect your type of policy from being attached by a creditor in a deficiency judgement situation such as yours.  However, I would take your polices and all your information as to your assets to a debt counselor as soon as possible.  Try and see if there is any way - even at this late stage - to avoid the deficiency judgement by giving a deed in lieu of foreclosure or obtaining a waiver.  Threaten bankruptcy - which will probably protect the other assets anyway - and consider it if necessary.  Good luck.