Hello. I have been married for 3 years to a wonderful man. He recently sold the business he owned for 9 years. Over those 9 years he accumulated around $30,000 worth of credit card debt! We own a home and care together, both financed in both of our names. I have very little credit card debt (less than $2000). We are DROWNING in his credit card debt, and we are BARELY paying the monthly minimums. What is our best option? We have tried refinancing the home, but with the market so low the appraisal amount would only give us about $10,000 in cash out. Also, he is not able to get a loan because he is in the trucking industry and no lender will agree to loan to him. HELP! I am desperate!!!
What is our best option to relieve our monthly expenses? Chapter 13 or debt consolidation? How long will either ruin your credit? And do I have to be included in either, since I have very little debt myself?
I think you answered your own question here. Of the two choices, credit counseling or bankruptcy, bankruptcy is the better fit. You see in a credit counseling solution your monthly payment will be the same or even higher than the minimum payments you are making now and struggling with.
You do not need to be included in his bankruptcy but any joint debts you might have will become your sole responsibility after he goes bankrupt. There are some options though. You could both do a Chapter 13 bankruptcy and that would allow you to keep your home and make a payment plan that is based on what you can afford, rather than a debt management plan that is based on what the creditors want to get.
You should also read The Truth About The Failure Rates and Completion Rates of Credit Counseling, Debt Settlement, and Bankruptcy.
Before you make any assumptions I would encourage you to click here and find a local bankruptcy attorney you like. Make an appointment to go in and talk to the attorney and ask all your questions. Then, go home and think about what you learned for a day or so before you make any decision about if bankruptcy is right for you.
Please update me on your progress by posting updates here in the comments section of your question. I’m very interested in how this works out for you.
You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.
P.S. Be sure to read ‘The Secret of Surviving Through Difficult Economic Times. What I Learned On My Journey‘.