Due to a separation from my wife, I am now saddled with $70,000 + OF CREDIT CARD DEBT.
One of the cards has just jumped to 29.99% interest. I am up to date with the bills, using money from
A house sale, about to run out.
I make approx. $30,00 a year and now rent and pay out approx.$1400. month in credit cards and credit
I think we can both agree that the credit card debt is unsustainable on your income alone. What has happened is whatever cash you had on hand from the sale of the house has now vanished down the drain of monthly payments.
The pouring in of the money was a Band-Aid but it’s not sustainable. Now that the money is just about gone we’ve got to deal with this situation head-on.
Divorce and separation often lead to follow-on financial problems. A household of two incomes can better deal with the family debt than two separate households. What was manageable before quickly becomes unmanageable as child support and running separate living situations, kicks in.
Luckily there is a very effective legal solution to allow you to break the bondage from this debt and get a fresh start, bankruptcy. Any joint debt in that mix that you had before you go bankrupt will now become her responsibility.
Some say they don’t feel that’s fair, but by the time these situations reach the financial tipping point I rarely find any fairness left on either side. She could always avoid a potential bankruptcy on your part of she kicked in to pay the bills but she probably can’t afford to do that herself. The die is then cast.
Separation and divorce is a marital fresh start and bankruptcy is a financial fresh start. Looks like this is your time to get all the fresh starts out of the way at the same time.
Your homework, click here to find a local bankruptcy attorney you like. Visit with the attorney and discuss your situation and then decide if bankruptcy s right for you.
Once you’ve made a decision, report back and update me in the comments section below.