My wife filed Bankruptcy Chapter 7 in 2001 prior to our marriage in 2004. Between 2004 and now she has racked up close to $50,000.00 in unsecured credit debt unknown to me until now. "I know some will say to divorce her, but that is out of the question" "She has gone through a tough time with depression and is on the road to recovery now" She has a $22,000.00 card that she is the secondary signer on with her Dad " I know, screw dad, but that's not going to happen either" as the primary signer. The rest are all misc. cards she obtained and ran up dept on. She quit her job 5 Months ago and we are 3-4 Months behind on all bills. We have been evicted from our apartment and live with my parents. We also have (2) small children. I make only $14.62 / Hr. My wife is looking for work. What are our options? 1) Consuly an attorney? What type of Lawyer should I look for / credentials? 2) Could she possibly file chapter 13 and use my wages as a plan to pay back until she gets a job? 3) My wife wants to sign on with one of these outfits that can reduce your debt by up to 70%. My Dad says these are scams and to be cautious. Anyone ever been this low before??? What did you do?? Please help?? Dire situation. Thank you
Based upon the information contained here, your best bet is bankruptcy, for both of you. I hardly ever recommend that, but your situation is indeed "dire". Bankruptcy should be considered the absolute last resort, but your scenario cries out for it. Based upon all the numbers you've given, the good news is you will have a fresh start, and the negative impact on your credit reports should be less than the time it would take to repay all these. If you can get the funds somehow, consult a bankruptcy lawyer. Don't try to do it yourself. Don't be too hard on ourself, focus on the future. The most important thing here is for both of you to learn from this mess. As hard as it may be to take this step, you will be glad you did later on.
If she declared bankruptcy in 2001, can she declare bankruptcy again now? I'm not sure about the length of time, but I think you have to wait a certain number of years... Someone have some insight?
That's one of my concerns. I think you can only file once every 7 years. We will be seeing a Bankruptcy atorney within the next day or so for consultation. Thanks
Don't be in such a hurry to file Bankruptcy. First of all - do you live in a Community property State (WA, CA, ID, NV, AZ, NM, TX, LA or WI)? If yes, then you may be held liable for her debts. If you live in Texas then the creditors can literally go pound sand because they can't garnish either you. If you live in any of the other states then the creditors can go pound sand because your wife has no source of income to garnish.
Okay, a bit confused here.. Refactory, In this thread you review your wife's situation, but you have another post stating you owe $27,000 on a credit card, w/ a BT rate(?). What is your family financial situation? It sounds like this is a two sided issue, not just your wife's spending habits. If you have $27,000 credit card debt, and your annual income is only about $29,000, then you have some serious spending issues here. I again suggest the bankruptcy consultation with a good attorney. I now recommend a consultation with a reputable credit counselor. Not a "debt consolidation" firm, but a true financial professional. There are serious issues here. I don't mean to be harsh, but you have to take control of this mess. Get serious, professional financial and legal help.
Sorry, I'm the dad of refractory and found this sight interesting. I posted using his login for my own question. Sorry for the confusion. Input to my question would still be greatly appreciated. Thanks
