Relocated out of state…house did not sell for 2 years, finally sold in a short sale and we signed a 30k promissory note. ALL other credit is PERFECT, but we are treated like bad seed. CC companies raising interest rates and slashing credit limits.
Go to a store to use a card and it has been cut off without warning. We pay more than our minimum payments and have payed a good amount of our debts off in the last year. We are not allowed to buy a home for another 2 years at the current FHA guidelines and we make the most income we have ever made in our lives.
I am begining to wonder why I should keep paying my debts. So here is what we have been debating…. I am seriously considering quitting my job and staying at home with my kids and adding to the family. This is something we always wanted to do, but never had the time for because we worked so hard at having it all. Now seems like the best time. We have nothing to loose at this point, it seems.
A bankruptcy puts us in a better credit situation than the short sale did. Of couse we will not qualify for a bankruptcy until I have been unemployed and we quit paying the bills. We are behind on NOTHING and our last late payment was at least 7 years ago, other than the house which the bank said would not show as a Foreclosure but it does….of course they also told us if we agreed to the short sale we would be able to own a home again in 12 months. LIARS!
Do we keep paying everything off, or should we throw our hands up and move on?
To your question specifically, I don’t know, you’d have to listen to what your heart says. But your plan is as valid as any other plan.
It is a bit of a double edged sword that big business gets to use bankruptcy as a way to break contracts and reduce expenses to stay in business. When a business does use bankruptcy, others applaud them for doing what is best to keep the business running. But when people use bankruptcy to reorganize their debts they are often thought of poorly. Not sure exactly why.
If you decide to pursue bankruptcy it would wipe the slate clean and gives you a fresh start. If you choose to use the fresh start to provide a higher quality of life for your children, it could be argued that there is an immense and intangible benefit gained by your family from the bankruptcy.
Some will boo you, some will praise you but you need to do what you need to do.
I will admit that I am a bit jaded with watching people making great life sacrifices in tough economic times, while creditors make none or offer little fair help to people in trouble. The irony is that those that go bankrupt will often recover faster than those that spend years repaying old debts that are impossible to pay.
I hope that helps.