If a modification is accepted, what are the BK chances?

[Pandorah]

I have a lot of CC debt, probably $18k worth, that I have not had the $ to pay in a couple of months... I went round and round struggled with this robbed peter to pay paul etc for months, finally ran out of steam.

We entered into a modification process with Homecomings for our 80/20 mortgage loans... (we financed 100% with assurance from our lender that refi would not only be possible with great terms, but it was virtually guaranteed... fast forward to the fall of the housing market and now we are $100k underwater on our home)... purchase price was $317, home is worth $210 if we're lucky.

Anyways, I requested loan mod - through much frustration (notated in the prevent forclosure folder), we were offered not the best loan mods but ones we are forced to accept for fear that if we don't we lose our home NOW.

First loan mod proposal: fixed 5% for 5 years, and adjustable after that every 6 months at a rate of 1% to a max of 13.15% (can we say OUCH!).. though was better than our original 7.25% for 2 years with the same adjustment rate and cap that was our originating loan. And now the payment will include the escrow as well, our payment is less by about $50 but since it includes the property taxes it's of benefit as that was additional for us, since there was NO way for us to have afforded to pay the extra $350 per month to go toward the escrow with the first loan, thus taxes fell behind - homecomings paid them.

Second mortgage: was fixed 11.99%, loan mod proposed fixed 9%.

Total savings about $150 per month total payment... but having the taxes included works out well too. My fear is what will happen after the 5 years.

Anyways, now that we are behind on so much stuff - current on car loans and the mortgages are about to be modified... I am not sure about it but bankruptcy is likely our only way out of this mess... I just want to put it behind us and move on (NO more CC for us!!!!).. we are to get married soon, so we will file together.

Now with the new obama plan, could this plan help us to reduce our mortgage to the principal of the home now? Our originating loan was a sub prime loan (obviously) and full doc... my credit score was 5 points too low to qualify for stated (which is probably good at this point)..

any thoughts or directions, and filing chapter 7 or 13?? We owe about 8k on the van (which we NEED, we have 6 almost 7 children) but we also need my car too as we don't all fit in the van either.. I only owe about 1k on my car (which is worth maybe 5K?.. I also work in a different town than I live in and our work schedules drastically differ... so sharing a vehicle isn't an option based upon the # of people and our work schedules/places.

[Moe Bedard]

BK consultations are usually done at no charge..........you may want to sit down with an attorney and go over the options that you are qualified for and what the end result will be.