Debt settlement, debt consolidation or bankruptcy, which one is the best option?I share a home mortgage of a house that I am not considering to short-sale if I don't find a solution. Recently we have modified the monthly payment with the bank but, the payment is still high due that I do not have any type of income after losing my unemployment benefits due to being placed on bed-rest because I am carrying a high risk pregnancy.
I am very behind on my payments, I have been trying my best but I have found myself paying LATE fees every month because I pay as I come up with money, some of my bills are more than a month late and one credit card I can't even make their minimum payment; I tried making arrangements with them but it was an unsuccessful intent.
I made a research about the three options I would have to deal with my debts. So, far after learning a little bet of the three, I thought bankruptcy would be my best option because either way my credit history will be damaged, I do not plan on adding the house on the bankruptcy, I have a debt with the state (which I now I have to pay that on my own).
I do not know if after the baby is born that I will have an stable income. And if I do, I wonder how far behind on payments I will be.
Does any of you have better understanding about those 3 options and if you consider that for my case, bankruptcy is the best option (even though there are 2 types of bankruptcy)??