My husband and I have been married for almost 9 years. About eight years ago we took my ex husband to court for custody issues involving my children. This took about 6 and half years and thousands of dollars. We paid for the court cost and attorney fees by getting cash advances on credit cards. We also have a child that had a major health crisis and we put his medical bills and medications on credit cards. We bought a new home about 3 years ago and we did buy a few new piece s of furniture and we took a vacation this past Nov, we have not lived very frivolously. My car is a 99 and was a gift from a family member. My husbands car is a 94 and was paid for before we got married. I do not feel that I can work because of the health needs of my 8 year old son ( who home schools as well because of his health).
We have almost 47k in debt not including that house. 18 of that is a personal loan the rest is credit cards. We have about 8 cards because for the past year I have been opening cards that offer 0% interest and then transferring balances. We have never been late on any of our payments and my husband has a great credit score. I have been looking into bankruptcy but my husband does not think we will qualify and is also terrified about what the aftermath will be if we do file. We spend over half of his monthly income on credit card payments. We are getting to a point where we are having to put our groceries on credit cards because there is not enough left over after making payments. We buy all of our clothing at thrift stores, my husband and I both have thousands of dollars worth of dental work that needs to be done and my car is on it’s last leg, but I can not afford to get even a used one.
Would we stand a chance on filling and if we did would we be able to keep our home and continue to make our payments like we always have.
We have no life insurance and would like to be out from under this debt so that we can save for retirement and send our kids to collage some day. Thanks for any help or advice you can offer. We are in Alabama if that helps any.
Slowly but surely the decision is being made for you. Once you get to the point of having to put food on credit, the end is near.
I understand the apprehension your husband faces but those understandable emotions are really based on fear rather than fact or information.
If you click here to find a local bankruptcy attorney it won’t cost you anything and you’ll get some straight answers. If you don’t pursue bankruptcy you will be broke, without transportation, living in deep stress and facing future homelessness. The current path you are on is not sustainable.
Let me calm one fear many have, they think the bankruptcy process, bankruptcy court, or bankruptcy attorney are going to judge them in some way. Nothing could be further from the truth.
There are several ways you can keep the house with filing bankruptcy but you’d really need to discuss that with the local bankruptcy attorney you select.
And here is the bottom line, if you don’t face this situation and take care of it you will be without savings, unable to save any money, unable to afford life insurance and have no college fund. Is that really the future you want to let happen?
If you do decide to file bankruptcy you will free up monthly income to save and do better moving forward.
Let’s start with the basics.
I’d suggest you first read How to Get Out of Debt. The Honest and Unvarnished Truth and The Truth About The Success Rates, Failure Rates and Completion Rates of Credit Counseling, Debt Settlement, and Bankruptcy. They will give you a great overview of what we need to deal with to get you moving in the right direction.
Then use the free How to Get Out of Debt Calculator to review your options.
After that, come back here and comment about what seems to make the most sense and let’s discuss that.
Does that sound like a reasonable approach?
Please post your responses and follow-up messages to me on this in the comments section below.