Answer.

First, there is no such thing as extra points from heaven for paying off your debts. The pearly gates there do not open any faster for those who have never filed for bankruptcy. This is not something to be ashamed of. I will say that I have never and I do mean NEVER had a client say to me, "gee I wish I had never filed for bankruptcy." Most say, "Why did I wait so long?"

Second, while it's too late now, you should have NEVER NEVER NEVER touched your retirement. It is exempt in bankruptcy, meaning it is not an asset considered by the Bankruptcy Court. You should have never borrowed from a secured asset to pay off an unsecured debt. Now you have penalties to pay on the retirement withdrawal, added housing expense and still more debt. Solution?

It's time to get real and file bankruptcy. You have a few options, short of an inheritance or a lottery win. Assuming you qualify, bankruptcy is your way out of this mess. If you can't keep your payment on the house current, it's time to sell or rent out rooms to generate revenue. What you don't want is a foreclosure that can have serious consequences if you try to qualify for a mortgage in the next ten years, more so than a bankruptcy. Quit hiding from the truth. Gather your bills, run your credit report and get serious about bankruptcy. It's time for a fresh start!