Questions on Chapter 7

[michunemployed]

Hello.........I am in need of some questions answered.

First some background info.....I am a stay at home mom of two boys and my husband was in a union in Detroit. To make a long story short we lived (when times were good) a little beyond our means..........Not too far into debt.....just starting......Well then time with the union got slow and unemployment ran out and we started living off our credit cards..........My husband tried starting his own business and we used our personal credit cards to get him on his feet..........Well let me tell you Detroit sucks because the business fell apart which meant we have more credit card debt.........I stopped paying the credit cards that were in my name only back in May. They have a total of $34,000.

My question is that my husband and I have a joint credit card with a balance of $20,000. If I file Chapter 7 by myself....will this debt be cleared or will we have to pay for it after Chapter 7?

To make matter worse, he is unemployed with no work coming out of the union and no unemployment benefits. He was really depressed and thought he could make a come back by betting on sports. Needless to say he did not win and now our last statement shows activity of $1200. Our payment is $650 a month on this card and we cannot pay it. I have to worry about our house payment first. I am worried that if I file we will have to pay this credit card.

Sorry to ramble but to make this easiest........Should we file Chapter 7 joint or singularly.........Do I stop paying on the $650 and wait 6 months to file?

I am extremely stressed out and am not sure what route to take..........I would really like to keep one of our credits in good standing.

Thanks for any help you can offer..........

STRESSED OUT MOM IN MICHIGAN

[HRx]

Hello.........I am in need of some questions answered.

First some background info.....I am a stay at home mom of two boys and my husband was in a union in Detroit. To make a long story short we lived (when times were good) a little beyond our means..........Not too far into debt.....just starting......Well then time with the union got slow and unemployment ran out and we started living off our credit cards..........My husband tried starting his own business and we used our personal credit cards to get him on his feet..........Well let me tell you Detroit sucks because the business fell apart which meant we have more credit card debt.........I stopped paying the credit cards that were in my name only back in May. They have a total of $34,000.

My question is that my husband and I have a joint credit card with a balance of $20,000. If I file Chapter 7 by myself....will this debt be cleared or will we have to pay for it after Chapter 7?

To make matter worse, he is unemployed with no work coming out of the union and no unemployment benefits. He was really depressed and thought he could make a come back by betting on sports. Needless to say he did not win and now our last statement shows activity of $1200. Our payment is $650 a month on this card and we cannot pay it. I have to worry about our house payment first. I am worried that if I file we will have to pay this credit card.

Sorry to ramble but to make this easiest........Should we file Chapter 7 joint or singularly.........Do I stop paying on the $650 and wait 6 months to file?

I am extremely stressed out and am not sure what route to take..........I would really like to keep one of our credits in good standing.

Thanks for any help you can offer..........

STRESSED OUT MOM IN MICHIGAN

You're more than likely better off filing Chp 7 jointly. Based on what you shared, it seems to me that not having access to credit may be in both of your interests. The two of you, need to focus on building up your cash equities and nest eggs once you'll rebound from your hardship. Leave the credit alone for a few years.

Good Luck!

[michunemployed]

Thanks!

Thank you for your honesty.........I think I will do that. I have just one more question..........The one credit card (joint) with $20,000 had some recently additions to it (Sports Betting) the last one was in July (when I told him to stop or I was leaving him ). Should we wait 60 days in order to file or do you think we should file as soon as possible. The UPside to all of this is that we are still current on our mortgage payments so I hope that we will still be able to keep the house. This is my major concern.

Any info will be greatly appreciated. Thank you so much for your time.

STRESSED

[HRx]

Thank you for your honesty.........I think I will do that. I have just one more question..........The one credit card (joint) with $20,000 had some recently additions to it (Sports Betting) the last one was in July (when I told him to stop or I was leaving him ). Should we wait 60 days in order to file or do you think we should file as soon as possible. The UPside to all of this is that we are still current on our mortgage payments so I hope that we will still be able to keep the house. This is my major concern.

Any info will be greatly appreciated. Thank you so much for your time.

STRESSED

Debts that were created within six months of filing for BK are open game for the creditors. However, there's still a good chance that you can have the entire balance discharged too. Whatever you do, stay current with your mortage!

Good Luck!

[michunemployed]

Thanks Todd.............I really appreciate all the help!!!