I am in a sticky situation right now and I desperately need advise. My credit score has always hovered in the low 500's high 400's. I got married 6 years ago and my wife's credit score was even worse, believe it or not. She has about 70k in student loans, a ton of charge offs, and just an all around miserable credit report. She does not work, she is a stay at home mom. Well, we decided we wanted to buy a home and my father-in-law kicked us down $16k for me to pay off all the credit card debt in both our names, mostly hers. After doing such our scores went up but not enough to buy a home, this was 18 months ago. This April the loan is due to leave the 0% interest stage and I will have to pony up the $9k left owing on the card to my father in law. Well, to do so I have had to stop paying on any of my debt except my car loan in order to pinch every Penny to salvage my relationship with my father in law. To make a long story longer, I am just nearing the 120 day late stage on ALL my debt cept my car loan and my FIFO has dropped from a 560 to a 478. We are signing today to lease to own a home with a really sweet deal, the only kicker is that in 12 months I have to re-fi the home completely in my name. SO, here is the situation. I have about $7k in delinquent debt, 120's past due. I have about $10k in my pocket that will either go to the father in law and my wife and I file bankruptcy and try to restore our credit rating to a point in 12 months high enough to re-fi the home into our own names, OR I take the cash, pay down my debt, screw over the father in law, and pray to the credit gods that my score will be high enough to re-fi the home. Has anyone filed BK or known someone to file for BK that has bought a home fairly quickly? I have a couple friends that filed and in 6 months had cards, 12 months had vehicles, and 18 months bought a home. Is this true or are they hiding the facts? Someone help please, I have about 2 weeks to make a decision then I have to do something. Thanks ALL!! TU Score: Bad EX Score: Badder EQ score: Baddest
There is life after BK, but it is not that easy as it sounds...yes you can get credit, even a mortgage, but your interest rates will be sky high. if you can't afford things now, why do you think you will be able to in 12 months when it is time to refinance...what if you need a new furnace, or your water main breaks? ...you need a certain amount of cash set aside for emergencies... as far as the 10000$ I hope you have it in cash under your mattress, because if not, and you declare BK, they will examine your records, and take the money back because it will be considered a "preference" payment Of course a lawyer can best advise you on this good luck
You should plan the Bk and make the most of it. Talking to a lawyer is a good idea to find out it the student loans can be part of it.
I'm not sure if I'm following, but if your father-in-law gave you $ to pay off all of the credit card debt 18 months ago, then what other debt do you have? As was said above, if you were living beyond your means 18 months ago, have incurred more debt since then and the status quo continues, how will things improve in 12 months? It sounds like you have a budget problem that is leading and will continue to lead to a credit problem. You need more $ coming in (more/better job, wife work etc.) and less going out. I know this is not what you're looking for, but it looks like a dark tunnel any other way. Good luck!!
Also keep in mind that Student Loans cant be discharged in BK. But see an attorney about that! NVBone Doc
