I got laid off in January of 2009 and fell way behind in my credit card payments, I found a job in November 2009 and am currently working but my boyfriend, who I have a dependent with, lost his job in May 2009 and is still unemployed. I am making all the household payments, rent, and car payments but am unable to make my credit card payments. One credit card alone has a balance of around $6,000 with a 30% APR! I have contacted MMI and was quoted a payment of around $400 for 44 months and am seriously thinking of signing up but wanted to hear your thoughts. Will being in MMI greatly impact my credit score negatively, even if I maintain my car payment? Do I have any other options besides bankruptcy?
If you can afford the MMI minimum payment and you can make the payment on-time and consistently for the four years they stated then it might be a good route to follow.
However, if making that payment leaves you still just making it from month-to-month or unable to also save money in case of an emergency, then it would not sound like a solution that would be reasonably expected to carry you through to the end.
Just for your own information and education it would be wise for you to click here to find a local bankruptcy attorney and listen to what they have to say regarding your specific situation. Then armed with the credit counseling and bankruptcy information you can make a better decision about what would be best 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.