I’ve been married for 4 years to my husband. We have a home, car, and one credit card in both of our names. We also have credit cards in just my name.
Our credit card debt has gotten out of control; to the tune of $93 thousand dollars. $75 thousand is in my name only.
I’m a stay at home Mom to a 22 mo old, and my husband works full time, bringing home $3000/mo after taxes. I know we have lived beyond our means, and am trying to start a budget, and not use the cards. We aren’t behind on payments yet, but are getting close to not making all of the credit card payments. I have made an appt. with a credit counselor to discuss a debt repayment plan, but wonder if bankruptcy is our only option, and if I should just do it in my name since I have no income and the debt is mostly in my name?
Should I file for bankruptcy or try debt repayment plan, and should I do it with my spouse or in my name only?
When you go to see the credit counselor they will probably try to sell you into a debt management plan by telling you how scary and bad bankruptcy is. Don’t fall for the sales pitch, and that’s what it is. I don’t care if it says non-profit next to their name, in the credit counseling world that does not mean they have your best interest at heart.
I suspect that you’ve been using cards to either pay for routine expenses or taking cash advances to stay current on your other cards. With your level of income I really can’t see any realistic way for you to reasonably afford a repayment plan through a debt management program for the next five or six years.
If we take your debt out of the equation then you are left with $18,000 of debt in your husband’s name and that would be about $360 a month on minimum payments.
It seems more logical for you to fall on the sword and file bankruptcy yourself with the debt in your name only. Don’t enroll your husband in an credit counseling debt management program. Make at least the minimum payments on his debts and let his credit shine.
If you feel great regret over not repaying your creditors, just becuase you go bankrupt doesn’t mean that you can’t repay them latter, when you can, on your terms.
Call a local bankruptcy attorney or two, find one that you like and go into to see them before you say yes to anything with the credit counselor.
Let me know what you decide to do.