Are you missing payments on your home and also have credit card debt? If you are dealing with this level of financial turmoil, you are probably feeling scared and confused. You might feel like there is no way out of this situation. Thankfully, there are several options you have to save your home and help you manage your debt.

When foreclosure is near and credit card debt keeps racking up, you can start by modifying your loan or filing for bankruptcy. Here is how each option works.

1. Loan modification

If you are lucky, you might be eligible to restructure your mortgage loan. This would bring your account current and establish a more affordable payment. In certain cases, this is the best option rather than filing for bankruptcy or accepting foreclosure. Your lender may be wary of approving a loan modification, so you likely want a legal representative to help.

2. File for Chapter 13 bankruptcy

This type of bankruptcy reorganizes your debt and will bring your mortgage loan current over the next few years. You pay a portion of your debt over this period through an affordable repayment plan. Your lender will not be able to reject these payments when you file for Chapter 13 bankruptcy, and you will keep your home as long as you make your repayments.

3. File for Chapter 7 bankruptcy

If you do not have enough income for a repayment plan, you might go for Chapter 7 bankruptcy instead. Chapter 7 bankruptcy will allow you to wipe out your credit card debt. Once your credit card debt is eliminated, you can try reapplying for a loan modification. Your lender might be more lenient with modifications once your credit card debt is gone.

Both types of bankruptcy and applying for a loan modification are viable options to save your home. The exact strategy you choose will largely depend on your income and assets.