K--
RE: Bankruptcy...
Chapter 7 is the total liquidation option....all of your assets will be evaluated. Then a certain amount of personal property will be determined "exempt"--it varies state by state but in general, you are allowed to "exempt" personal items such as clothing, household furnishings and tools of your trade up to a certain dollar value. Any property that does not qualify for exemption can be sold to settle your debt.
Chapter 13 is also called the "wage earners plan". Instead of selling your property, you must submit a plan to repay the debt within 3 to 5 years (a bankruptcy attorney will help you determine the sort of plan you can propose based upon your discretionary income). If you do not have any "discretionary income" as determined by your states means test (which is based upon median wages in your area), then you will not qualify for Chapter 13.
Either way, however, YES a bankruptcy filing will buy you time. The second you file, you will halt any collection or foreclosure proceedings in their tracks. Then you will be required to attend a court-approved credit counseling program and then you will get a scheduled court date.
If you qualify for a Chapter 7 plan....you can live in your home for the two months in will take to go through the process....and then you can liquidate the house and anything else you won't want to take to HI anyway....discharge ALL the debts and get a fresh start in a few months when you start your new job.
Anything negative, whether a foreclosure or a bankruptcy, can stay on your credit rerport for up to ten years.
If you file Chapter 13...you will need court approval to apply for a car loan or credit card or anything like that while you are still completing the terms of your payment plan.
If you file Chapter 7...you are free to get a car loan or anything else you want without court approval. If you make all the payments on a car loan after bankruptcy, it helps to restore your credit fairly quickly.
Hope this helps...
Good luck!!
--DaisyFace