Will we loose our home?

Hello,
My name is Seth. My wife and I live in Ironton, Minnesota. Recently we received a home equity loan to pay off our debts and fund my wife to start a in-home daycare. To make a long story short, wy wife was denied license by the state and she currently has no income. She has a GED, but no other skills that would qualify her for a good paying job, to justify having our three kids in daycare. I have a full time job and bring home about $1600 a month. The problem is my income is less then all of our bills. we have cut costs everywhere we can, but still have about $2000 a month in bills. I was wondering if we would loose our home if we files for bankruptcy? Other then some late payments on utilities and some medical bills, the two mortagages are the only real debts we have. We have no way of paying both mortagages every month, especially with having three kids. Any help or input on this subject would be greatly appreciated, as we dont know what else to do.

[I AM ALWAYS LIABLE]

Originally posted by sethdog
" . . . as we dont know what else to do.

My response:

. . . and when you made an appointment for a free initial consultation with a Bankruptcy attorney, what did the BK attorney advise you concerning your particular situation ?

IAAL

[JETX]

Just a quick question....
Your said that you "received a home equity loan to pay off our debts and fund my wife to start a in-home daycare."

Where did the money go that was allocated for the daycare, since it didn't 'pan out'?

And, assuming the remainder went to payoff bills as you claim (leaving no 'other' bills), are you telling us that you KNOWINGLY committed to $2000 per month in mortgages knowing that you only bring home $1600.00.

[HomeGuru]

If the home equity loan funds were used to pay off debts, how come you still have debts in addition to your mortgage payment?
Something does not make sense here.
Your mortgage payment should not be that high if you qualified for the loan on only your income.