My wife and I have finally had the "bankruptcy talk". We've been struggling with bills for a long time and I brought up the idea. Here's our situation:
Married w/two kids
$45K/year salary
Wife is unemployed going on a year (staying home with the new baby)
$154K mortgage (no equity)
$22K car loan
$55K credit card debt
Great credit besides the debt (Mid 700 credit scores and no late payments...yet)
We own:
1999 Mazda P/U
$8K 401(k)
Here's the twist:
I'm tired. Sick and tired. I know I've done this to ourselves, but this weight has been on my back for over 10 years. I spoke to a bankruptcy attorney and he made it sound simple. He said "Come on in, we'll file CH 7 and get all of that unsecured debt wiped away". It's all on three cards.
My main question is this. I still have a lot of available credit on hand. If I was to take some very large cash advances ($15K) and make some big ticket items that we want/need, would there be any red flags or problems that I would face? I would then go into the bankruptcy with almost $100K of credit card debt instead of $55K. I just think that if I don't have a large amount of cash on hand and take care of some expenses (car repairs, home repairs, etc.) that I would end up back in financial trouble.
I'm not a scumbag trying to screw anyone over. I've paid these huge minimums for years without missing a payment. The last years have not been about running up the cards on fun things, it's been more about making ends meet.
Lastly, should I even be considering this first or should I try credit counseling? Any and all coments are welcome.
Married w/two kids
$45K/year salary
Wife is unemployed going on a year (staying home with the new baby)
$154K mortgage (no equity)
$22K car loan
$55K credit card debt
Great credit besides the debt (Mid 700 credit scores and no late payments...yet)
We own:
1999 Mazda P/U
$8K 401(k)
Here's the twist:
I'm tired. Sick and tired. I know I've done this to ourselves, but this weight has been on my back for over 10 years. I spoke to a bankruptcy attorney and he made it sound simple. He said "Come on in, we'll file CH 7 and get all of that unsecured debt wiped away". It's all on three cards.
My main question is this. I still have a lot of available credit on hand. If I was to take some very large cash advances ($15K) and make some big ticket items that we want/need, would there be any red flags or problems that I would face? I would then go into the bankruptcy with almost $100K of credit card debt instead of $55K. I just think that if I don't have a large amount of cash on hand and take care of some expenses (car repairs, home repairs, etc.) that I would end up back in financial trouble.
I'm not a scumbag trying to screw anyone over. I've paid these huge minimums for years without missing a payment. The last years have not been about running up the cards on fun things, it's been more about making ends meet.
Lastly, should I even be considering this first or should I try credit counseling? Any and all coments are welcome.
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