My wife and I are thinking about bankruptcy….?
I have a bachelors in business finance and I will complete my MBA next month. I was laid off about 20 months ago. The same week I was laid off I found out my wife was pregnant. We now have 3 children. I was eligible for unemployment and it did not last for very long. I then picked employment where I made 60% less than I was previously making to make ends meet. I now have gainful employment and I am making about 15% less than 20 months ago.
My wife and I will have student loans coming due in about 6 months and I am considering using my credit cards to payoff auto loans and other secured debts that are in both our names. When the student loans come due we will not be able to pay all of what is due every month with no end in sight. After being unemployed, we did very well keeping our heads above water however we are now feeling the pinch of our delayed situation. We feel if bankruptcy is our only solution we should use our credit cards to pay off everything.
We are considering filing bankruptcy under one of our names and NOT a joint bankruptcy so as to avoid having to forfeit any assets like the autos, etc. If we do this we should be able to retain all assets because it is not a joint filing. All of the credit cards we would use would be in wife’s name. Are there any issues with this?
Can’t you deffer student loans – call them up and ask them.
I think you can do this in special situations.
Also, a federal school loan can’t go in a bankrtuptcy..
If you need help there is a government agency that helps you at no cost.
July 9th, 2010 at 7:01 pmNFCC.org
Google their site – call the 800 number, make an appointment to see this non-profit agency in an office near you.
Reviews call them angels.
If they think your only option is bankruptcy – they will tell you.
But they have ways of dealing with the creditors that will seem like magic.
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Your first step is to see if you can even qualify to file for Chapter 7…You have to pass a "means" test…which roughly translates that your income must be below the average for your state. Most BK attorneys offer free consultations. You can find out this way.
July 9th, 2010 at 7:01 pm- Student loans cannot be discharged in Chapter 7
- There would probably be issues with transferring debts to your credit cards right before filing for Chapter 7. If you can do this…you might have to wait a year before you can safely file….Consult with an attorney on this issue.
- NFCC.org, as quoted above, is a non profit organization that was set up by the credit card industry. It is not a government agency. It can negotiate reduced interest and payments (but not settlements) on credit cards only. This service only assists with credit card debts and cannot help with student loans. Being that they receive money from credit card companies, any advise they give regarding not filing for bankruptcy may be biased. The whole purpose of this organization is to intercept people who are thinking about filing for Chapter 7 and to put them into a debt management plan.
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July 9th, 2010 at 7:01 pm