Other than an easy strip of the underwater second mortgage, what are the advantages of both spouses filing. We have no joint CC debt; the CC debt is mine. Her good credit score remains intact. Is it worth sacrificing a good credit score for stripping a 44,000 dollar second mortgage. Opinions appreciated.
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If you are both on the loan...If you dont file jointly the second lien holder will file an unsecured POC, move for relief and start throwing every collection effort known to man at your wife on a $44k unsecured loan. Payments will stop coming in and while your credit report says the account is in bankruptcy hers will be decimated by late payments and eventually will be charged off and be reported as such with no mention of BK. If she is on the loan too definitely look to protect her in this as well. -
IMO, yes, it's worth sacrificing "good credit" in order to save $44000 + interest on a 2nd mortgage. Let's say you have an okay rate on your 2nd, we'll say 7% with 13 years left, that's $67000. My credit score isn't worth $67000, especially considering that in a few years, a score can be built back up if you so choose. Personally, I choose to never use credit again. Debt is not a tool, it is a prison.Filed Chapter 13 on 2-28-10. 341 completed 4/14/10. Confirmed 5/14/10. Lien strip granted 2/2/11
0% payback to unsecured creditors, 56 payments down, 4 to go....Comment
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Strip the second if you can and forget about the credit score...seriously...
My $0.02 only...No person in their right mind files a Ch. 13 with lien strip pro se. I have.Therefore, please consider me insane and clinically certifiable when reading my posts, and DO NOT take them as legal advice of any kind.Thank you.Comment
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44k can be settled after a chapter 7, get it over fast, add up the expenses of a 13 vs a 7
After a 7 they can't bother you, can and offer 5-10K.Comment
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I appreciate the advice. I am concerned about not having a single cc to use. One needs a CC to rent a car and make online purchases, airline reservations, etc. So, even though my wife has no CC debt, she wouldn't be able to use them? Guess I am clear on all the changes involved if we both file--other than getting rid of $60k of debt. I apologize for my ignorance. I understand the process but not the psychological and life changes involved with ch13.Comment
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At this point debit cards are pretty much accepted any place a credit card is. If you need the credit card for online purchases you can still use a debit card.Comment
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