We have been unemployed for 6 months now. We have been struggling for years, even when working fulltime. Just living paycheck to paycheck. We have tried to pay down as much debt as we possible can, but now with no job we come up 700.00 short every month to just pay our bills. It is not working any more. We tried short sale, but with being 65,000 over what the house is worth, they won't even bother with us.

We have:
Owe 75,000 first mortgage (House just appraised for 45,000, Crazy I know!!!)
HELOC owe 30,000 only paying interest payments
Owe 16,000 CC debts
Owe 9,000 on time-share (Trying to sell now)
Owe 8,500 on only car (worth about 10,000)
And all the other monthly living expenses.

We have really tried, but we are at the point to just through in the towel and file chapter 7.
We obviously pass the means test with only unemployment benefits.

Does anyone see another option because we don’t?

It sounds like your situation is pretty grim, but obviously your biggest problem is income. If you declare bankruptcy and are wiped clean of debt, you have to do something to up the in flow of cash... maybe move to a place where the unemployment isn't so bad? Just a thought. My prayers are with you, hope it gets better.

Did you try to talk to all the lenders? make it clear that your back is against the wall and you consider bankruptcy; but keep in mind every dime they cut down your debt is considered income for taxes; if they don't talk to you stop paying the mortgage, if bankruptcy is in the cards than the credit file does not pose a problem anyway but you will get their attention.

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Put a smile on your face... look to the future and tell your creditors it's time for your bail out.

Go 7 and do it proudly. the great thing about America is our ability to take risk and not succeed. Take the opportunity to start over and make no apologies.

I would never suggest bankruptcy to anyone because it has a life-long effect. Even though it "feels" like you are starting over after bankruptcy, just remember that it is still on your credit report. It will effect any potential creditors in the future. I have worked with couples who have gone through chapter 7 bankruptcy and they have had a difficult time just refinancing their home. It will effect potential jobs and even if you want to get life insurance! So be careful if you consider this further. I would say that debt negotiation may be a better option for you. You can work with your creditors to settle your accounts for less than what you owe; generally between 30 to 75% of your outstanding balance. If this is something you think you would like to do instead, please learn more at http://debt-into-debt.blogspot.com so that you will know what to expect and what to avoid as well.

First thing I would do is to stop paying the Credit card companies. You will get to them later. When they call don't answer. Next stop paying the mortgages. The bank will call and you let them know in writing or by phone that you cannot pay and are looking to do a shortsale first, Foreclosure second. Preferebly you'd rather do a short sale with no recourse but that will take a while. If you continue to pay they won't deal with you, because they still have money coming in. Don't worry about your credit score because it is hosed anyway for awhile. Third, sell your car and take out a small loan to cover the difference and buy a piece of crap car for around $1000. Continue to look for jobs. You may have to change your strategy and look for anything, like delivering pizzas, waiting tables. You won't have to do this forever, but long enough to get back on your feet.

Good luck.

Bankruptcy is truly your last resort, I would look for all possible solutions before resorting to that. If your mortgage's interest rates are too high you could always look into information regarding loan modifications. They can modify your Adjustable Rate Mortgage to a Fixed Rate Mortgage and get your interest rates to around 3.5% give or take. This would also help if you already have a FRM and just need lower interest rates. The downside is to use a company they will charge a fee for this but there are ways to help you afford it.

For your unsecured debts you can look into a debt settlement or consolidation (whichever you would feel more comfortable with, just make sure you keep a lot of information and check the companies out thoroughly.) They can help lower your debt amount and your monthly payments and Debt Settlement companies can actually erase the interest from your debt so you will no longer have to worry about your payments only going to the interest and not touching the principal amount.

Looking for any type of employment, 2 or more if possible will help relieve some of the stress of debt as well (like everyone else said) Pretty much what everyone else said.

Just hang in there and try to tough it out and I'm sure you will be able to get through it. Whatever doesn't kill us just makes us Stronger.

We maybe able to help you out if you havent thrown in the towel
yet - please contact me thr' this post or my website in my profile
with your contact information

Do your research.. not all debt is forgiven via a bankruptcy.... for example student loans cannot be included in a BK...

Bankruptcy is far and away better than being bled to death monthly...your home is a complete economic disaster even if you had jobs...

Timeshares bring pennies on the dollar especially if you are NOT a RED Week...

I would be surprised if you car is worth what you think it is...used cars are seriously depressed in value at this time...

This year will see many more personal bankruptcies, because the recovery is mostly ephemeral for the average worker...