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My Husband Wants to File Bankruptcy

Date: Thu, 01/18/2007 - 12:21
Submitted by joendesha on Thu, 01/18/2007 - 12:21
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My husband is a SAHD (Stay At Home Dad). He has quite a few credit card debts, appx totaling $10K, plus student loans. I'm not sure if they are federally-funded or not. He is thinking about filing BK because we are really struggling with the payments on these cards. Plus a couple of his cards have raised his interest rate w/o a good reason. I've been paying the cards on time each month and have never been late, but I usually go negative in my bank account (luckily, they cover the amount) each month. He's tired and I'm tired of not having any extra funds for basic necessities like groceries, etc. We own a home. I'm the only one on the note, but we are both on the deed.

We are really stuck financially. We have tried to talk to debt counselors, but most of them have told us if we aren't late, we don't need them. If they could help us, the payment consolidation wouldn't help much if we were to go through with it.

If he was to file a Ch 7, would they want to know the household income? Or just his income?

Thanks in advance.


If you are looking for chapter 7 bankruptcy, the court will liquidate all your assets and make you rid of all the debts. If you are already paying mortgage, you can formally reaffirm the loan, or just keep making the payments. The court will calculate all your income and expenses and revaluate your assets before discharging the debts. Chapter 13 will be a better choice because you'll be able to keep your house as well pay the debts under a repayment plan. The creditors will not hound you because the court will fix up a repayment plan with the creditors.

Under the new laws, consumers filing for bankruptcy must take the credit counseling and qualify in the means test.

The debt counselor you talked with discussed about debt settlement. You need to be late in the payments before the creditors are called and explained that you are in no position to pay the debts and want it settled.

debt consolidation has no such specific requirements. You can start the program even if you are current. You'll have most late payment fees waived off and the interest rates will be lower from the existing rates. Take one quote from a consultant referred by this website. You will have clearer options before finalizing the decision.


Submitted by a_neblat on Thu, 01/18/2007 - 12:35

a_neblat

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About filing BK with student loans---I do know that the student loans have to be a certain "age", too recent and it doesn't work. I don't know if it matters if they are private or federally funded though.

When you registered on this site, it allows for you to be contacted by a debt counselor (free). You can also discuss this issue then too. Good Luck. PS---There is a forum on here devoted just to Student Loans, check it out.


Submitted by Lorri on Thu, 01/18/2007 - 12:40

Lorri

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