Is Bankruptcy the right choice?

Since no one has all your details, no can give you a solid response but you could consider credit card debt re-negotiation. That doesn't mean CCS.

That means you could renegotiate the credit card debt or a lawyer could do it for you. Go to www.naca.net and search your state's membership roster. I'd have all the debts, the interest rate, and other information listed for the lawyer and see what can be accomplished.

Is your husband actively seeking employment elsewhere?

Would it be possible to pay off the credit card debt with a loan from a relative?

 

Could five relatives offer smaller amounts? You might not be able to pay them back on an immediate basis but you could possibly consider small amounts until you're back on your feet.

Is it possible that there are two or three lower-wage jobs out there? I know things are difficult in some areas so please don't take offense if I've offered a thought you've already had. <s>

Is the budget cut right down to the bone? I mean, is the bone *white*? Do you have a newer car? Can you sell it to get an older, but reliable used car? The difference could pay down some of the cc debt.

Do you have cable TV? That can be cut.

Do you have just a plain old telephone line and nothing more?

If you have a cell phone, that's a luxury.

If you have a cable modem connection to the internet, go to dsl or even dial-up. Slower, yes, but the difference in connection cost is a healthy chunk of change.

It never hurts to see what a consumer advocate lawyer could do for you, there are no guarantees but they often re-negotiate credit card and medical debts.

 

I would normally say no, only if it is your last resort. But I'm not sure what is going on with this bankruptcy reform and if you will still have the opportunity to file later. I have high balances too, $38,000, but I'm going to make an effort to pay them. First I transferred alot of the high interest balances to 1.9 -3.9% balance transfers. I get tons of offers for 0.00%, but I'm reluctant to open any new accounts right now.

Do you think your situation is temporary? Maybe you can get a home equity loan from your house? If your husband is young and healthy, he will find another job eventually.

You should take a realistic look at your budget and cut out what isn't absolutely necessary. You'd be suprised at what you can save a year by eliminating eating in restaurants, soda pop, candy and snacks, and other non essentials. When I went over my budget and expenses, I was astonished to see what I was spending on food and junk a month! About $800 more than I should have been!

You can also try to get some of the payments reduced, like refinancing your mortgage and car to get a lower payment now. You can always pay them down when things get a little better.

Its hard to really say with so little information on the situation. If you already have everything cut down to nothing and refinanced, then bankruptcy may be the best option.

 

Have you exhausted every opportunity? See if a NACA lawyer can get you some relief with lower interest and smaller payments. If you've exhausted *every* option, looked at every opportunity, then I would say, it's better to do it sooner than later.

With October 17 looming, I think it may be prudent to have the paperwork in order and get a few free consults under your belt.

 

If you have low interest, try to pay it off. Maybe your husband can get a job at 7-11 or McDonalds, or both. You said you have basic cable. Cancel it. Believe it or not, you can live without TV.

Turn on the radio. It's free. I did this about 15 years ago, mostly to save money, and I have to tell you that even when I travel (I was on business travel for over a year) I hardly ever turn on a TV set. I turn on the radio and can listen while doing other things.

If you get the newspaper, cancel it. Same with magazines. Go to the library to read. Only buy clothes if you absolutely need them, and only on sale, preferably at a thrift shop.

Cancel the cell phone contract. Get one of those pay-as-you-go cell phones and ONLY use it in a REAL emergency, not because you want your husband to stop at the store.

If you have a lawn service, cancel it (you probably don't if your husband is out of work, but some do). Buy the cheapest brands of food, etc.

There are almost always things to cut out of your budget.

Is there something you or your husband can do at home to make money? And he should be looking for ANY job, not just a job in the field he was in making the money he was making. Can you work, too?

If you search my threads you should find several where I discuss getting out of debt. I had $77K in credit card debt and I've paid most of it off. What I haven't paid off I've chosen to carry, because it's at a low rate and I can invest the money to make more money.

I worked three jobs for a while, and had no life at all. Was it worth it? At the time I wasn't sure, not the answer is a resounding YES, IT WAS!!

 

I agree with you. I am four months post BK and I can finally sleep at night. But you need to consult with a good BK lawyer to see if it is a viable option. Husband was out of work 8 months.