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Hello,

Here is my situation, I have been married for almost 6 years and I have personally accumulated almost 40,000 in credit card debit. I am paying about 750.00/month in payments. I had most of this debit before I was married. I am starting to feel the crunch paying half the mortgage and bills, plus my student loans and credit cards to the point that I am not making enough to cover the costs each month. I don't want to ruin my wifes credit (she is not listed on any of my debt except for our home) by filing. I want to know if I can file to get out from under my credit card debit without hurting my wifes credit. Will it also effect our mortgage if I file, because it is the credit cards that are killing me. I have been making my payments ontime, but I will have about 2-3 months before I start going backwards. My wife and I both work fulltime and I can pay my credit card per month, but not 750.00...Thanks!

Jason

chrisburns · Posted: Sun Dec 09, 2007 6:37 pm Post subject:

You may want to talk to a lawyer about the bankruptcy laws in your state.

Is there enough equity in your home to pull some cash out and try to consolidate some of that debt while simultaneously lowering your interest rate to actually save you money monthly? This would save your credit as well.

jameswells · Posted: Sun Dec 09, 2007 11:33 pm Post subject:

Be careful about transferring the debt to your home from the credit cards. It really depends upon the mortgage company and how they report to the credit bureaus. More than likely, the mortgage will report that it was included in a BK, but if that is the only debt you share...it may be worth it. She would also likely be able to dispute any record of BK on her credit bureau if she doesn't file. Again, check with an attorney regarding the state laws in your area, her income may have to be calculated into your assets if you file BK.

larry · Joined: 27 Jun 2007 Posts: 3322 474.67 Dollars($)

Hi jasonw,

Welcome to this forum.

I think filing bankruptcy is the last option to choose. It will hurt your credit score and remain almost 7 years on your credit report.

It is always better to consult with an attorney. He is the best person to guide you as he is familiar with all the laws of your state.

If you gave enough equity in your home, I will suggest you to try out cash-out refinance. That will help you to pay your credit card debts.

Feel free to ask if you have any further questions.

Thanks,
Larry

lisascherzer · Joined: 04 Jan 2008 Posts: 755 1.12 Dollars($)

If you choose to file BK then I believe that you can file just in your name but just don't include the mortgage in the bankruptcy. This way, you and your wife can continue with the mortgage payments and her credit will not be effected. I would consult an attorney of course, but I hope this helps you narrow down your options.

yourbestmtg · Posted: Tue Jan 15, 2008 10:24 pm Post subject:

Hi Jason,

First, find an attorney that does free consultations and discuss the options with him, it will cost you about $1500 to do a bankruptcy with an attorney. Consulting with the attorney will at least allow you to ask questions & make a list to bring with you. You can do it yourself, you can purchase software online - one click bankruptcy is great, very easy to do. You will probably have to use your wifes income for the "means" test (this is a test you have to do that determines if you can go 7 or 13) and if she has a good income, chapter 7 will not be an option. To answer the question, you will not hurt her credit if you file only if this is your option. Or consider this option: How much do you owe on the mortgage & how much is the home worth? If you have enough equity, a home equity line of credit or a refinance can be options if you do not want to bankrupt. A line of credit might be the way to go because for 10 years (most equity lines work like this) you are only obligated to make an interest only payment and this will be much lower than the payments you are giving to the credit card companies which is mostly interest - if you are only making the minimum payments, it will take you about 30 years to pay them off! Once you are done with your student loans, then you can pay more on the equity line to reduce principal. Or it may make sense to refinance. A good mortgage professional can assist you with what is best for your financial situation.

You also might be interested in the Money Merge Account - it's web based software that will help you pay your mortgage off in half the time, it's "smart" software that will work for you and your budget, you do not have to change anything about how you spend your money now either.

Feel free to ask me any questions!

AlaskaDES · Joined: 04 May 2008 Posts: 28 12.75 Dollars($)

What about reorganizing your payments to be the fast way to zero? I may be able to show you how to arrange all your debt payments so you can see a drastic difference in your monthly obligations.

If you can make your minimum payments, want to not negatively impact your credit score, and see results.

[Edited promotional texts as per forum guidelines]

larry · Joined: 27 Jun 2007 Posts: 3322 474.67 Dollars($)

Hi Jennings,

Welcome the forum.

Please say something about yourself and introduce yourself at http://www.mortgagefit.com/introduce-yourself.html so that the community can know about you.

Hope you will enjoy participating here and helping people out.

Best of luck,
Larry

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wonding if filing is worth it...