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Active Military With a Debt Consolidation Loan We Can’t Afford. Can I Go to Jail? – Carol

My husband and I were in a “good” financial situation. I had paid off the credit cards with a consolidation loan for which I am paying $800.00 per month. In 2008, I lost my job (we are military and got transferred). we ran up the credit cards again…We now owe about $60K, plus bills, two young kids (growing like weeds). Our income is nowhere near enough to cover all the monthly payments, sometimes even the utilities get “floated.” My husband is active duty and the consolidation loan comes right out of his check. I have tried to get the bank to refinance it for lower payments on a longer term but our debt-to-income ratio + the lowered income keeps us from getting approved for that. We still have 13 months to go on that. I have already agreed to a payment plan with one bak for 2 credit cards but that is also taking out an additional $341 per month auto-payment. I’m drowning here…

What is the first step to start trying to fix unmanageable debt? Is bankruptcy my best option? Can I go to jail for this?

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This is information that was submitted by a third party and not generated by GetOutOfDebt.org or Steve Rhode.

2 thoughts on “Active Military With a Debt Consolidation Loan We Can’t Afford. Can I Go to Jail? – Carol”

  1. Hi Carol,

    Jail is not part of the equation in this.
    Bankruptcy is an option. Your husband should speak with his CO about it prior to filing.

    Can you provide more details about how the consolidation loan comes right out of your husbands check?

    Have you and your husband familiarized yourselves with the protections afforded to active duty military through the SCRA? You can learn more about that and what may apply to your situation here: http://www.military.com/benefits/content/military-legal-matters/scra/servicemembers-civil-relief-act-overview.html

    Reply
  2. Hi Carol,

    Jail is not part of the equation in this.
    Bankruptcy is an option. Your husband should speak with his CO about it prior to filing.

    Can you provide more details about how the consolidation loan comes right out of your husbands check?

    Have you and your husband familiarized yourselves with the protections afforded to active duty military through the SCRA? You can learn more about that and what may apply to your situation here: http://www.military.com/benefits/content/military-legal-matters/scra/servicemembers-civil-relief-act-overview.html

    Reply

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