I have talked to two different bankruptcy lawyers about my situation. I would love your advice. My husband makes around 1200 biweekly and I am a server that is not doing so well in this economy. I have gone from making at least 100 a night to maybe 30-75 sometimes 0.
My finances are a mess and I can’t breathe anymore. We have a first mortgage of 99,000 and a HELOC of 101,400 that is completely used and closed. My house is at 213,000 on Zillow which is no where near what it was when we took out the HELOC.
We have two car payments, two little boys, and I have about 19,000 in credit card debt that I can barely pay and am behind. With that debt gone I could have a lot of breathing room, start saving money, paying everything in cash, and have peaceful nights.
Is this amount too low for bankruptcy? They suggested it, but of course any lawyer would, that’s how they make their money. What do you suggest. I would also like to file alone and not include my husband. These debts are in my name. Is it possible that they would take our house/ cars?
The amount of debt really isn’t the hurdle, it is the impact the debt has on you.
I guess what concerns me the most here is that by eliminating the $19,000 will it make enough of an impact in your obligations that you can find some breathing room?
If the debt is in your name alone you can go bankrupt individually. Your husbands income will be used in the means test to determine if you can do a Chapter 7 bankruptcy or must go with a Chapter 13 bankruptcy.
I applaud your efforts to seek an opinion from two different attorneys. That’s a smart move.
The house is probably safe but I’m not clear on if one or both cars are in your name?
So what did the bankruptcy attorneys say when you asked them these questions?
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.
You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.
P.S. Be sure to read ‘The Secret of Surviving Through Difficult Economic Times. What I Learned On My Journey‘.