<prompt> Human: For the first time in my life I will be unable to pay everything, not sure what to do. So far my credit is OK, no late payments. Alimony payments were based on the last 3 years income, average of 125k, now I will be lucky to break 100k. Alimony is set at 1,825 a month for the next 2 years and 8 months, can modify if income drops 25. Was advised that it wont change much because the amount is based on her needs. Trying to sell the house, its too large and I cannot afford the payments anymore. Its been on the market for 90 days. Upside down by 3,500 if sold at list price now. Would need to do a signature loan to come up with the money. Also have a lot of credit cards right now, about 46K, 1,150 per month minimum payment. A 401k loan, balance of 36k, 742 per month. I have cut expenses, sold the car with payments, driving 2 old cars with no payments. Combined they are worth maybe 4k, both have a lot of miles on them. With some luck they will last a few years. Net Income: 6,350moMy income: 6,350 net average - income varies a lot, added expected bonus and holiday pay, estimated overtime, W-2 set to near break-even at tax time. Expenses: 7,278mo -928, -678 after 5 monthsAlimony: 1,825 three years, 1,250 is tax deductible per month 1st Mortgage: 1,309 4.252nd Mortgage: 465 7 total on mortgages: 1,774 about 270 in tax savings per monthNo Car loan: 0Car Insurance: 137GasElectric: 300 averageInternet: 63pest control: 26Phone and Cell: 66Watertrash: 100 averageTransportation gas: 240 Groceries: 400Medical costs: 50 Entertainment other: 40 Life insurance: 21student loan: 94401k loan: 742total of credit card payments: 1,150 minimum lawyer: 250 5 payments remaining Debts: 1st Mortgage: 192,0002nd Mortgage: 32,000 total approx. 224,000total of credit cards: 46,000401k loan balance: 36,000Student loan: 2,600Assets:Savings: 0401K, 90,000options are: 1. Pull house from market after this month. a. Rent whole house out, 1,440, rent at 1,600-10 service fee then get a small apartment, spend 700 Save on utilities too, 200b. Get roommates, Rent 3 rooms, get total of 1,400, utilities will go up, net 1,200 a month.2. Declare bankruptcy, clear off the credit cards, stay in house? Looks like I qualify for chapter 7, if I avoid overtime. I like this, mostly out of protest of the ridiculous alimony payments. 3. Short sale the house, or stop paying and let it go into foreclosure, keep paying credit cards?4. Default on 401k loan? Most plans allow this, shouldnt affect credit, down side is penalty and taxes due as a disbursement. I guess withdraw enough to pay taxespenalty as well. 5. Short sale the house then rent something smaller.6. Enter a debt management program for the credit cards, quoted 642 a month for 53 months. Could do something similar on my own. 7. Get a better paying job, with relocation package to help sell house. So far I like option 1 the best. Any ideas? Is it better to do bankruptcy or short saleforeclosure?  <response>: screwed_by_divorce46k credit card debt36k 401k loan debtYou screwed yourself long before the divorce. 