One of the hardest things for many bankruptcy clients to do is just walk away from their house or car. People form emotional attachments to both houses and cars, especially the former. It's the place where the kids grew up, where there were good times and bad, the place that was always refuge from the storm. But in bankruptcy the house might not be refuge; it might well be the cause of the storm.
The current economy has put a lot of homeowners under water with their mortgages, to where some owe twice as much as the house is worth. Look at it objectively: If you were buying a house, would you pay twice as much as it is worth? But that's exactly what some people do when they reaffirm on the mortgage debt.
If you're filing bankruptcy and looking for a fresh start, look first at your mortgage. The sensible thing might be just to walk away.
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