Shifting debt to spouse

[HalfPaycut]

I have $68K in unsecured debt.

My wife has $43K in unsecured debt.

Our joint unsecured debt is $16K.


I would like for only one of us to file so the other still has a decent credit score. Is there a way to get one of our names off of the joint debt?

Is there a way to shift my debt to her or hers to me? I think I can continue to make my minimums for 12 more months but I don't think I'll ever be able to pay this off.

Thanks.

[filingin08]

One of you has to establish a new line of credit and transfer the balances of the old accounts. Then close the old accounts. On the new account would be only one person responsible. Other than that, there is no way I know of to remove responsibility.

[krielly]

You know, back in 2005 when my DH and I went for a BK consult, we only intended for him to file, NOT me.

It was the lawyer who said to me....... you yourself have 25K in unsecured debt. Why wouldn't you file??? It doesn't cost anymore to file jointly than just one of you, and you'll have a clean slate at the end of your 13.

I told him it was because I thought at least one of us should have good credit. He said "what for? you already have a home, and vehicles. You can rebuild. He then mentioned that married people sometimes have to handle these things "together". It was a problem that affected both of us, not just one of us. I'm glad I listened.

I don't know all of your details, but if both you and your spouse each have that much unsecured debt, and you are struggling to make minimum payments, you are right......You'll never get out of this debt. In my opinion, you need to bite the bullet, not worry about credit scores for the next few years, and tackle this head on.

Don't get me wrong. I DO value my credit score, and am currently trying to build mine back up. But I think its worth a few years of sacrifice because of filing, vs years and years of struggling to make minimum payments, just to watch the balances NEVER BUDGE!!!!!!!

Please consider this carefully!!! Sometimes you need to look at the big picture, and not just a 3 digit score, and what it will say for the next few years.

I wish you the best !!!!!!!!!!!!!

K

[Trixie007]

At a minimum, you're talking about "shifting" 59k of debt into your name - it seems unlikely that you could do that without raising a few eyebrows.

[HalfPaycut]

I though they only "look back" 12 months. Is that true?

With my current situation, I can pay minimums for the next 12 months but no more than the minimum payment. Just enough to stay current but never pay off.

[mkuki]

With my current situation, I can pay minimums for the next 12 months but no more than the minimum payment. Just enough to stay current but never pay off.

No offense but u sound like me 6 months ago....LOL

you are not making creditors look at you any better by making min-pay...I understand the "equity" argument, actually, that's the start of the snowball----> avalanche

I was making min-pay and never built a nest egg, and soon after being laid off, I had to cash my 401(k) to survive....creditors are not buddy-buddy with you.

Look yourself in the mirror, and say, after me..."I aint taking shit from NO ONE!"...then talk to a BK lawyer, and trust me, u will feel much, much better...

Remember, equity is paper money...until you sell...

[catleg]

Get rid of the debt and make a fresh start.

Never be a slave to your credit score. That is truly the mark of the beast.

[HHM]

Bad idea...this is BK fraud 9 ways to Sunday. Plus, you still have JOINT debt.

mkuki's post brings the right perspective.

As a practical matter, do you really have enough available credit to do it. If you have to apply for new credit to do this, that is BK fraud 10 ways to Sunday

You both have debt, you both need to file. Credit heals over time, there really is no reason not to file jointly.

[HHM]

Never be a slave to your credit score. That is truly the mark of the beast.

LOL, so true.

[eddiep]

If you are living that close to the edge you might as well jump before you get pushed! I should have filed years ago, we kept making the minimum payments and thought we were doing fine, but we ended up having to charge everything we wanted and eventually everything we needed. It spiralled out of control very quickly. I wish we had planned our bk, that we had taken charge and addressed this before we had no choice but now we are just picking up the pieces and I am afraid it is going to be harder to get back on our feet because we waited so long.

Planning to move debt and holding out for a year sounds like a bad plan to me. What if something unexpected happens like you lose your job and HAVE to file sooner than you want/need? I doubt there is any way you are going to get that past a bk judge.

I don't want to sound like a preacher here, I am as guilty as they come, but here I go... Times are changing, we all need to learn to live within our means, you shouldn't be so dependant on credit, scary I know!

I may be wrong on this but when you are married don't you share a joint credit report?

[JRScott]

There is no way to do this without having to wait at least 2 years before filing bankruptcy and avoid the level of scrutiny that as HHM says will arise to bk fraud.

You also fail to mention what state you live in, if you live in a community property state there is no way this would work under any circumstance.

Your best bet is to bite the bullet, file jointly and then accept that at least short term you'll be facing a lower credit score. However you probably could rebuild yourself in about 2-3 years time depending on how the economic crisis of the nation unfolds.

[taramaxed]

You know, back in 2005 when my DH and I went for a BK consult, we only intended for him to file, NOT me.

It was the lawyer who said to me....... you yourself have 25K in unsecured debt. Why wouldn't you file??? It doesn't cost anymore to file jointly than just one of you, and you'll have a clean slate at the end of your 13.

I told him it was because I thought at least one of us should have good credit. He said "what for? you already have a home, and vehicles. You can rebuild. He then mentioned that married people sometimes have to handle these things "together". It was a problem that affected both of us, not just one of us. I'm glad I listened.

I don't know all of your details, but if both you and your spouse each have that much unsecured debt, and you are struggling to make minimum payments, you are right......You'll never get out of this debt. In my opinion, you need to bite the bullet, not worry about credit scores for the next few years, and tackle this head on.

Don't get me wrong. I DO value my credit score, and am currently trying to build mine back up. But I think its worth a few years of sacrifice because of filing, vs years and years of struggling to make minimum payments, just to watch the balances NEVER BUDGE!!!!!!!

Please consider this carefully!!! Sometimes you need to look at the big picture, and not just a 3 digit score, and what it will say for the next few years.

I wish you the best !!!!!!!!!!!!!

K

I know exactly how you feel. We are in a similar situation and in the beginning thought of doing the same thing. Then we couldn't get any more credit to actually do the transfer. We even thought that one of us would just carry the joint card and continue to pay it. We racked our brains for weeks to think of an alternative. We came to the realization that this would not be a fresh start. I feel that ever since we came to the decision to both file a HUGE weight has been lifted. Let me also tell you that this decision has brought us closer together. Everything that the third poster said is right on the money. I don't know if you own a home. We do not but we figure that in two years we will rebuild and save for a down payment and qualify for an FHA mortgage.