We have a lot of credit card debt and cannot make payments on them due to a job loss. Can the creditors take our house?

First, I would say that you should not count out bankruptcy. The guidelines look at not only how much money your household makes in the last six months, but it reduces that median amount by your secured creditor payments, healthcare, income taxes and household expenses. So I would be very suprised that your husband either alone, or with you, would not qualify for a chapter 7 bankruptcy.

If you are indeed sued by your credit card companies, and the companies obtain a judgment, the judgment would be recorded with the recorder of deeds in the county you live. So if you live in Cook County, it would be recorded there. That lien attaches to all property, including your house, in that county. In theory, since its a lien, the creditor can force the sale of your house. However, it is extremely rare, as prior recorded liens would have to be satisfied. So if your visa card records a lien, and you have a first and second mortgage in place, your credit card would be third and would have to pay off the first and second mortgage before forcing the sale of your house. That will not happen. So the credit card judgment sits there and remains on your title until its satisfied. So if you sell or refinance your house in the future, it will have to be dealt with. Keep in mind, any judgment accrues interest at 9%.

The judgment could also be collected by the creditor attempting to seize funds in your bank account or through a wage garnishment. The judgment is good for 7 years, although it can be revived to last longer.

You should consult an experienced bankruptcy attorney in your area. income is only one of the criteria that the means test considers -- and you did not mention how many children that you have. The bigger the family size, the higher the income median. Plus, as a previous answer stated you are able to consider your secured debt; priority debt and expenses for living and health care.

If you have a mortgage you should be offered an opportunity to reaffirm your debt -- whether you want to reaffirm or not is something you should discuss with your bankruptcy attorney. The real estate market is down and you may not have equity right now -- you might want to reaffirm or you may not. That is only something you can decide with more information and assistance.

Good luck.