I am drowning in all my credit card debt. I am married, I have a house And car loan I don't want affected! I would love to just wipe out my credit cards! It's hard making the "every day " bills. I need to start living without the stress of creditors calling me. Can u please help me in what my options are?
Contact a bankruptcy attorney to discuss your options ad to receive legal advice. This online forum is not adequate for your needs.
Although AVVO describes this site as providing free legal advice, it is really a simple Q&A forum. The volunteer attorneys provide general answers. No specific legal advice is given here and no attorney-client relationship is established. For precise direction and legal advice, please consult in person with an attorney in your area. Be sure to bring all relevant paperwork with you.
There is no way for you to give us enough information to advise you on whether you should file for relief under the bankruptcy code. However, in many cases, a wife can file in her name only and she can discharge her unsecured debt an continue to pay her house mortgage and auto loans without adversely affecting her husband.
The best way to answer your question is to take advantage of a free initial consultation with an experienced bankruptcy attorney that handles chapter 7 and chapter 13 cases even if you think you need to file under chapter 7. Become educated on all the issues involved and related to your current economic situation, find out the advantages and disadvantages for filing under each chapter and use an attorney that can help you make the right decision for you and your family. I have found that it is beneficial for both husband and wife to attend the initial consultation even if they believe only one spouse should file.
Some of the factors that an experienced bankruptcy attorney will need to review are:
1) total amount of unsecured debt such as credit card debt, medical bills, personal loans, old utility bills, etc.;
2) total amount of secured debt such as auto loans, house mortgages and loans that have other items as collateral;
3) for loans made to purchase autos and other personal property in which the collateral are the purchased items, did you purchase the auto more or less than 2.5 years ago or did your purchase other personal property more or less than one year ago;
4) what is the interest rate on you secured loans and would a reduction to around 5.0% help you significantly;
5) for the tax debt is the debt dischargeable in a chapter 7 or chapter 13, and if not, would discharging the penalties in a chapter 13 and stopping the interest from running on the tax be a significant savings;
6) your projected income and expenses and you means test income and expenses, which considers your average income over the past 6 months;
7) what assets do you own that are exempt and what assets that you own that are not exempt; and
8) is your income subject to being garnished by a judgment creditor if you decide not to file.
Most bankruptcy attorneys will meet with you at no charge for the initial appointment. You can use the Avvo "Find a Lawyer" link at the top of this page to search for an attorney.
Answers and comments provided are for general discussion only. My comments are not to be considered legal advice and they do not create an attorney-client relationship.
Filing for bankruptcy protection might be a worthwhile option. You don't get to pick and choose which of your debts is addressed in bankruptcy (you have to list everything), but in most cases you are able to keep your house and car as long as you are able to keep the payments current.
Your husband does not have to file bankruptcy himself, but his income information will be necessary for your filing and his income may affect what type of bankruptcy filing you are able to pursue and what the terms of your bankruptcy filing will need to be.
You need to schedule a consultation with a bankruptcy attorney to discuss the details of your situation and what you can and cannot accomplish through the bankruptcy court.
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