We'll this is my first post so here goes. I work for a mortgage company so I spend most of my day worrying about losing my job. I've decided I need a game plan as to how to handle my debt if in fact I become unemployed or my pay gets reduced. I am located in NY. Hereâ??s my credit situation: I have a car loan with a balance of $28k a lease that I will have for another 4 months and have $2k in payments remaining. I have $38k in credit card debt from every bank under the sun. My wife is a stay at home mom who has very little income but owes about $22k on her credit cards. So all told I'm in for about $90k. On the plus side I'm still employed and able to make at least the minimum payments. My credit is still fine (low to mid 700s), all of our debt is at an average of 5.9% interest, and we are using less than 40% of our available credit. But with our debt getting out of control and my employment status in question I need a plan of action. Plus my fixed monthly expenses are about $800 over my monthly income so the debt keeps growing even though I am paying $1k a month in minimum payments. I had some thoughts should this problem blow up. First, trying to negotiate with the creditors to lower the minimum payments and interest should I be unable to continue making my current payments. Second, stop paying all of my wifeâ??s cards and concentrate on mine. Third we declare bankruptcy. We don't own a home so if I went Chapter 7 I don't think there would be much for them to take. I doubt they want our used clothes or bed etc. Any input would be appreciated thanks. And Iâ??ve seen a lot of replies asking stating the poster didnâ??t provide enough information so I tried to include as much as possible.
Your third option - bankruptcyChapter 7)- is the best. However: Your credit rating will take a dive. If future employers check applicants' credit histories and see a bankruptcy you might not get hired. And - if you ever need car insurance with a new insurer, they will make you pay higher premiums because you have lousy credit. On the flip side: You will be debt free.
As the months go buy the hole gets deeper.i"d say chapter 7.Start over you dont need the stress.File before any charge off.
the chapter 7 option bankruptcy is best. but i will surely affect your career. if any time you need a loan you may not get it due to bankruptcy.
Even with the lease expiring in 4 months - it looks like you will still be $300 per month in the hole. But, from what you say, you will pay 2K over the next 4 months, and end up $3200 or so more in cc debt. You should at least explore BK, probably for both of you, since the wife owes quite a bit and has no outside job.
