** I have already looked around at similar threads before posting my own.
After building up some CC debt in college I got a consolidation loan with Citifinancial, who became the lienholder on my car. Have kept up with payments from 2005-current, but have since gotten into more CC debt after getting married, all of which is in my name b/c my husband already had poor credit. I was not able to combine that into the Citifinancial loan and denied with several other loan companies so I contacted Consumer Credit Counseling/Money Managment International and enrolled in their debt management program. Paying $349/month I was expecting to have most paid off by 2011. But then we went from two incomes to one and it was a struggle. We missed a few payments and eventually got dropped from the program. These debts have gone unpaid for about 6 months now. I am getting bombarded with collection calls. I recently contacted Citifinancial in regards to trying to sell my car b/c it's no longer reliable (they are still lienholders) but then decided I'd rather not put up my husband's truck as collateral (that we own outright as it was a gift and is the only reliable vehicle for our family). Doing so would also require Citifinancial to add my husband to the account--his name is not on any of our debt. It was suggested to me by the Citifinancial loan officer to look into BK when she realized the debt we had besides the loan (payoff on loan is around $7k and the other debt totals about $7k, but the interest is racking up as we speak). I have been told by several people in the past that our debt was not serious enough to file for BK. But the past few years we are struggling and can't seem to get out of it. I also have student loans but my parents are paying them for the time being. My husband is against BK as he says it will make our situation worse. He says BK is not as cut and dry as some people think and will not really wipe out any debt. (We didn't really know the difference in Ch 7 and 13 until reading it here.) We are struggling just to keep food on the table and electricity. We did have some government assistance for food but became ineligible when my husband got a $1/hr raise. We lost our rental home back in 2008 and my mother-in-law financed a mobile home for us in her name so we pay the mortgage through her. We have nothing of value in our names besides his truck which was a gift from her and I'd hate to lose it. I have yet to contact a BK attorney and just looking for some advice before taking that step. I hear the initial consultation is "free," but am seeing fees over $1000 to file plus having to hire the attorney and right now we have $12 in our checking account until next payday. Like I said we are struggling to keep up with regular monthly expenses and have resorted to selling small belongings to get cash for gas and food. We are also "borrowed out" with our families and hate to ask for more help.
The reason we don't have two incomes right now is I have a high risk pregnancy, the baby is due in March and I fully intend on returning to work somtime after, but not sure I will bring home much after paying for daycare for two kids. Also, I'm not sure if there will be 'further legal action' taken against us by the time I go back to work and if my wages will be garnished. Are my husband's wages safe from being garnish since his name is not on any of the debt? He grosses about $2000/month, from which taxes and child support are deducted.
Thanks!
After building up some CC debt in college I got a consolidation loan with Citifinancial, who became the lienholder on my car. Have kept up with payments from 2005-current, but have since gotten into more CC debt after getting married, all of which is in my name b/c my husband already had poor credit. I was not able to combine that into the Citifinancial loan and denied with several other loan companies so I contacted Consumer Credit Counseling/Money Managment International and enrolled in their debt management program. Paying $349/month I was expecting to have most paid off by 2011. But then we went from two incomes to one and it was a struggle. We missed a few payments and eventually got dropped from the program. These debts have gone unpaid for about 6 months now. I am getting bombarded with collection calls. I recently contacted Citifinancial in regards to trying to sell my car b/c it's no longer reliable (they are still lienholders) but then decided I'd rather not put up my husband's truck as collateral (that we own outright as it was a gift and is the only reliable vehicle for our family). Doing so would also require Citifinancial to add my husband to the account--his name is not on any of our debt. It was suggested to me by the Citifinancial loan officer to look into BK when she realized the debt we had besides the loan (payoff on loan is around $7k and the other debt totals about $7k, but the interest is racking up as we speak). I have been told by several people in the past that our debt was not serious enough to file for BK. But the past few years we are struggling and can't seem to get out of it. I also have student loans but my parents are paying them for the time being. My husband is against BK as he says it will make our situation worse. He says BK is not as cut and dry as some people think and will not really wipe out any debt. (We didn't really know the difference in Ch 7 and 13 until reading it here.) We are struggling just to keep food on the table and electricity. We did have some government assistance for food but became ineligible when my husband got a $1/hr raise. We lost our rental home back in 2008 and my mother-in-law financed a mobile home for us in her name so we pay the mortgage through her. We have nothing of value in our names besides his truck which was a gift from her and I'd hate to lose it. I have yet to contact a BK attorney and just looking for some advice before taking that step. I hear the initial consultation is "free," but am seeing fees over $1000 to file plus having to hire the attorney and right now we have $12 in our checking account until next payday. Like I said we are struggling to keep up with regular monthly expenses and have resorted to selling small belongings to get cash for gas and food. We are also "borrowed out" with our families and hate to ask for more help.
The reason we don't have two incomes right now is I have a high risk pregnancy, the baby is due in March and I fully intend on returning to work somtime after, but not sure I will bring home much after paying for daycare for two kids. Also, I'm not sure if there will be 'further legal action' taken against us by the time I go back to work and if my wages will be garnished. Are my husband's wages safe from being garnish since his name is not on any of the debt? He grosses about $2000/month, from which taxes and child support are deducted.
Thanks!
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