Beginning stages in deciding on chapter 7, Please help..

[invest1choice]

Hello everyone,
I have maybe like 10,000 credit card debt and my husbands was a authorized user and he had used some things on it but he wants to stay out of the bankruptcy because he thinks one of us she try to stay above here right now my middle score is like 557 high score is 600 .. his is lower than mine 565 middle and 575 high but he thinks that if after I file chapter 7 then if they go after him then he would settle with him to save his credit report. He just got an offer approved to but a house and he plans on pulling money out to pay debt. to bring up his credit score then rent it out or sell it whatever comes first. I am not really sure what to think about this because he does have a judgement 5000.00 about 4 years old and it is out of state the loan officer told him not to worry about it all his credit issues are so long about two years ago except if I claim bankruptcy then the credit cards may report lates not paid.. I just think this might be a mess if he does not file with me I just think we should just start fresh I have two personal loan = 10,000 and a car payment way upside down like 10,000 ...owe like 17,000 .. We just make our bills every month. This is the hardest descion I have had to make and I feel so sick inside not sure why. We also have to refinance my house in 1 year beacuse the interest could go up to like 13.5 it was a 2 year arm .What a mess I tell ya .. I know my husband is trying to do what the best for us is but this is a hard call. We moved here from florida to buy houses and resell them foreclosures but my score in florida was like 625 then for some reason when I sold my house in florida it dropped to like 585 right after I bought my house here. then I could not get financed due to debt to income.. Pretty much all the bills are in my name not his .. Any Suggestions Please feel free.. Thanks

[HHM]

Regarding your credit reports, your husband is crazy. There is nothing of his credit to save...and settlement can be more of a negative than BK. Any credit score below 660 is pretty much garbage, (don't take that the wrong way, you can still get financed and credit with scores below 660 but you pay much more for the credit).

It sounds like you have about $30,000 in unsecured debt (credit card debts of $10,000 and two personal loans each for $10,000), so you could eliminate them in a chapter 7 assuming you otherwise qualify.

Do either of you work, and what does you monthly income look like. You should probably meet with a BK lawyer to get a better sense of what your options are.

[invest1choice]

reply

Yes That is what I thought , He is just trying to hang on to whatever hope he has left . He thinks that by getting this house as a investment with a 9.5 interest rate , I know crazy huh? but he thinks cashing out to pay debt would make it all better and either sell the house or rent it. I think we are playing russian roulette is my oppinion . We have 10,000 c/c 10,000 total personal loans and car payment upside down 16,500 .. he does have a judgement 5000.00 and debt medical and a apartment loss he owes like 3000.00 .. But he really thinks since it is old like 4 years it don't matter.. We both work we just make our bills as long as we pay minnimum on the credit cards. and no money for any emergency's that may come up but I doubt they really care about that.. I usually have to pay one credit card then pay a bill when it clears . that is how we have been getting by. Well thansk so much for your reply.. Maybe I can get it into my husbands head to just through in the towel and I hate to say it but to stop having hope. Our concern I guess is mainly that in 1 year we have to refinance this house beacuse of the arm . it could go from 7 % to 13 % ... Well thanks again...