My husband's company is permanently closing the plant in our town putting 1,100 workers in a town of 8,800 out of work. I am unemployed also. Our mortgage is $1600 and our HELOC is around $700 per month. We probably owe around $10k in credit card debt that family could help us pay out if we are able to modify our loan. The balance on the 1st=$215,000 and the 2nd=$140,000. We know that he will definitely not get a job making even close to what he was earning. We are hoping that the 1st mortgage would modify our payment by about $500. Due to the massive job loss this town is facing, property values are sure to tank also. There are no jobs without commuting a good distance out of town. The HELOC is with a local credit union that is likely facing a large amount of delinquencies due to this. I doubt they would hurry to push for foreclosure, if at all. Would we be able to file chapter 13 on the HELOC and try to stay in our home?

BTW=the state if Virginia

It'd be most prudent for you to ask these questions to your BK lawyer. However, one good thing about ch-13 is that you don't have to surrender the property. IMO under ch-13 you may modify your loan payments even the HELOC to overcome the debts within five years period.