Bankruptcy Question

My state is Kentucky. Any advice would be greatly appreciated.
Here is my situation: I consolidated my bills (car, credit cards, etc.) in May by taking out a mortgage on my home. In August I was in a Motorcycle accident and I have been recovering from numerous serious injuries, therefore am unable to work. I was hit by an Uninsured motorist and only carried liability insurance at the time. So, I have no income. I need to know if I can file bankruptcy to save my home from being taken. I am 1 month behind on my payments so far. Please Help

In order to reaffirm on your house, you have to be current on all your mortgages and stay that way.

You cannot get your second mortgage discharged and keep the house.

Second mortgages are great for tax breaks, but they are not for situations like yours.

If you want to keep your house, you must keep current on those loans and reaffirm them with the creditors.

If those debts had still been credit card debts, they would have been dischargeable.

They still are now, too, but now that they're secured by your home, getting a discharge of those mortgages would be at the expense of losing your home....

[HomeGuru]

Do you have only a first or both a first and a second mortgage?

This is not a second mortgage, my house was free and clear until I did the consolidation back in May. Does this make a difference? I realize if it were a second mortgage then I would be in worse shape. I read somewhere about a "Hardship" bankruptcy, would my situation apply?

And thank you all for replying, I am in a really bad situation and need all the advice I can get.

Ah, OK. I assumed you already had a mortgage and took out a second mortgage to get to the equity.

The fact that you owned your home free and clear before the mortgage brings up another issue that you need to consider.

There are certain exemptions for property you are allowed to keep.

In Indiana, you are allowed to keep $7,500 in equity in your home. It's $15K for a married couple.

I don't know what the exemption level is in your state -- or what your equity level is, but you really need to find that out, too.