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Lois
I would look into all of your options. If you have met with a not for profit consumer credit counseling center, I would also suggest meeting with a bankruptcy attorney. It is possible to file individually since the debt was incurred prior to your marriage. It is also possible to not include your home into the bankruptcy filings as well. Most will offer a free consultation.
First you should file for homestead. This keeps you home safe in the event that there is a judgment against you. It keeps you from having to sell your home to pay the debt. This can be done at you local county recorder’s office, usually for less than $20.
Bottom line, don’t panic. Many people are in your same situation.
Craig
You really need to sit down with your husband and work out a plan for getting current and starting to pay off debt. When you are married, there is no her debt and his debt. There is only our debt.
As a couple, you need to sit down, make a budget, tighten your belts, cut out all unnecessary spending and attack those balances. It may take awhile, but it is possible.
Is there a reason that you only gross 3-400/month? Do you have children?
Amy
during the period in my life when i was over my head in credit card debt, the tactic i chose was simply just to ignore that debt and ignore the bill collectors. bad credit falls off your credit record in seven years. and you can rebuild your credit rating with a secured credit card.
this is what happened to me and what i did at one point in my life. now i have good credit and it worked out well for me.
instead of filing bankruptcy, just simply ignore your credit card bills you can’t pay and ignore the bill collectors calling you. it might be better than filing bankruptcy because a bankruptcy stays on your credit record for ten years and the bill collectors will still nag you!
Heidi
Contact your local Red Cross for a referral to the local Consumer Credit Counseling Services (CCCS) in your area. They can negotiate much lower payments and interest rates. They DO NOT negotiate settlements.
They will require you to stop using all credit and to cut up your cards. Your credit report will be updated to “enrolled in debt management.” This does not damage your credit, but it may make it impossible to obtain new credit while you are enrolled in their program….so don’t use this service if you anticipate applying for a new apartment, car loan or mortgage anytime soon, as you would probably be denied while you’re enrolled in the CCCS debt management program…. Otherwise, it can be a very good way to deal with your debt.
Please note that CCCS cannot perform miracles in situations where there is an overwhelming level of debt relative to your income/assets.
CCCS is technically a non-profit organization, it is also partially supported/promoted by the credit card industry. My only concern with CCCS is that they would discourage a person from filing for Chapter 7 when in reality that would be in that person’s best interest. Sometimes Chapter 7 bankruptcy is the only solution to overwhelming debt.
Don’t let anyone smear or guilt-trip you for making this decision if you have to…especially all the people who like to quote Dave Ramsey who think that BK should always be avoided….this is ridiculous advise that only benefits credit card companies…Of course BK should be avoided if at all possible…but sometimes it is needed. Do what’s best for you and your family. Corporate America uses BK all the time and no one slams them.
Just remember that you can only file for Chapter 7 once every eight years….so if you file, you won’t be able to discharge your debts again for eight years, even if you find yourself in a worse financial situation..
DO NOT use any firm that promises to settle your debt at 50%…these firms deliberately let your accounts default/charge-off to put them into a position to negotiate settlements…This ruins your credit rating and your creditors have no obligation to accept settlements from these firms.