unsure

[deepindebt]

I am deep in debt like my name. I have $40,000 in unsecured debt. I kept this a secret from my husband and family for years. The cat is out of the bag and it almost cost me my marriage.
I want to file bk, chapter 7 but unsure of my husband's assets; Are his assets off limits to my creditors? His name is not on the credit cards just mine. My name is on our mortage and one vehicle.
I have been working with a debt consolidation company for almost one year and they have taken over 1750 dollars from me and not done anything. Plus I haven't paid a dime to the creditors that are enrolled into the program. I have signed over Power of Attorney and still getting collections calls, which the company tells me it is illegal. Plus two of my creditors have served me with papers via sherriff and I already have a court date.
Currently, I am self employed and only making 150-170 a week, which will change once school starts.
I have learned a valuable lesson from this credit card debt is you can't keep up with the Jones cause the Jones don't care about you when you have nothing. Spending all that money made me happy but it is a big pain in my rear right now and it is making my life misserable. Thanks for listening and please advise.

[CRRAVOSA]

Bankruptcy may be a better situation

Bankruptcy usually does not affect your husband or his assets except items which you own jointly. In terms of the house it depends on your equity situation. As for the house you would need to make sure that you have a homestead if your state allows one in Massachusetts a homestead exempts up to 300 to 500k(depending on your situation), however, with the new law some provisions do apply with the home and you would need to talk to a lawyer about this in your state. The debt will not go away and will just increase a 10k credit card with 20% interest will increase to $12k in the next year if no payments are made, before you know it you debts with double with the interest, late fees, over the limit fees and collection costs. Bankruptcy Laws were created to give the debt "A fresh start" "A clean slate" bankruptcy is nothing to be ashamed of, our clients are informed that they are the wiser as they know they have a problem and need a solution and take the steps to implement that solution. Bankruptcy is not for everyone but you got to be realistic can you pay or settle the debts if not then it may be your wayout. Good luck!

[deepindebt]

Thanks for the post, Does anyone else have anything to say about my situation?? It is very hard to forgive myself for my deception. I have come to root of why I spent all that money. I worry when the lawyer asks me what I spent it on and I am unsure about where some of the money went. I have stopped using credit cards and paying cash/check for all my living expenses.

[herekitty]

At some point in our lives we have all made stupid decisions, and many people here (including myself) couldn't tell you where 1/2 that money went! You're lucky that your marriage is still there and that the cat is out of the bag. I know a lot of people that have spending problems and hide it from their families - but bankruptcy (if the right decision) can be a fresh start. There's no point in beating yourself up about the situation you have found yourself in, hindsight is 20/20 and if you knew then what you know now, you probably wouldn't have made the same mistakes.

Your attorney will probably ask you how you got in this position, and the trustee may as well. Be open and honest - tell them, you look back and you honestly don't know where that money went. The question will be asked, primarily because they are looking for assets to take and give back to the creditors.

You've already started anew - you're learning to live with in your means and that is the first step. Take to heart CRRAVOSA's post - you need to do some research about your exemptions, about your lifestyle changes and you need to keep an open communication with your spouse and decide if it is right for BOTH of you.

Bankruptcy isn't the end of your life, it's a lesson in it.

[bezoar]

Go ahead & make some appointments with some (2 or 3) attorneys - bankruptcy specialists. Time is short with the changes coming up in October. Most offer free consultations. Don't worry about telling an att'y about your situation - they're not there to judge you or your past decisions.

Get in there and at least find out if it is an option for you. My att'y has a small practice and said that he will no longer be accepting new clients within a couple of weeks due to the wave of new clients trying to beat the clock. Not trying to scare you - just saying you should probably get going on this...

good luck.

[Pinktiger]

I am in a similar situation. I have $67,000 of debt that I filed CH 7 BK on. My husband is not in the BK; we own our home jointly, so in our state that is not considered touchable. His personal property is not touchable, although his income is considered when looking at expenses to income ratio.

Go see an attorney and get the free scoop. I'm glad I did. As to what you spent it on, don't worry. As long as you didn't buy luxury items or plan to defraud your creditors by hiding cash somewhere, you will be OK.

[deepindebt]

Thanks for the comments. I live in Minnesota, I do know that Minnesota is not a community property state.

[Minnymouth]

Beating yourself up will not solve the problem.....seeing a lawyer for consultation will be step in the right direction.
Keep those lines of communications regarding debts "open" between you and your spouse.....
Clean it up thru BK and start over again.....being realistic this time....
Do a budget - KNOW where your money goes???

Keep us posted,

Minny