Help, I need some advice!!

[GreenLotus]

Hi everyone. Ok, I'm going to just spill the beans here.. I have no clue where to turn or what to do??

My husband and I currently live in New York state. My husband only makes 26,000 a year, I'm a stay at home mom to our 7 month old daughter. We owe roughly $23,000 in credit cards and about $9,000 on our car. We don't own a home so only rent is paid. We currently have NEVER been late on any of our credit bills and our credit scores are: Mine 735 & my Husbands 720. SO we're good there but things are falling fast! We can barely keep up with payments right now.. to make our credit cards on time we have to charge the electric, insurance and phone bill I don't want to be ruined forever by filing if we choose to also.. everything you do anymore is based on your credit score!

So we're getting no where fast! If I file bankruptcy I want to do it as smart as possible but I know nothing about the whole process!! If possible I want to get as much out of it as I can! I know you need a lawyer but have no clue about that either!!!

I would appreciate ANY ANY advice you all have to give!!!!!! I'm lost here!!

Thanks so much for your time!

[BassBoy]

First, if you choose to use a lawyer...and since you're unfamilar with BK, it might not be a bad to use one. That said, schedule appoinments to meet with 3 or 4. The consultations are free. Now as far as deciding which attorney to use, that's where your gut instinct is going to have to come into play.

On the other hand, you could possibly get out from under the debt without having going through BK. $23K of CC debt is not as bad as it seems. However, it would help if we had a better idea of your some of your expenses. For example, do you rent? How much? Things like that. Anyways. credit counseling is one way to try and get out from under this debt, but this is an area I'm unfamilar with, and I've heard some real horror stories....so.....any other member care to chi,e in here?

We all know that lost feeling, so you came to the right place.

[Viper]

Welcome fellow New Yorker. First off try not to stress over this to much. Just remember your not the first person to run into this kind of difficulty. You have made a great step by looking here for help, there are many kind souls here with lots of information to share. I hope I'm not out of line by asking, but are you able to work? Even a part time job just may give you the extra help you need. Do you have any other debts, medical, tax's, student loans?

Should you decide to file BK I can assure you it's not the end of the world. You can still get credit cards, auto loans, and even mortgages. The rates will be higher at first, but as you rebuild your scores you will be able to get better rates. Depending where you are in NY I can recommend a good lawyer, he handled my BK7 very well.

My suggestions for you at this point is to get all of you bills and bank statements together and see if you can set a reasonable budget that you can live with (be sure to account for rising gas prices). Read as much information as you can from this site and don't hesitate to ask questions.


-Viper

[razorguns]

The trustee may tell you to get a babysitter and get a job. And that debt could be eliminated within 2 years.

Prepare to be grilled. I hope you're prepared ahead of time. Good luck.

r

[jerseyguy]

Process

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[SinkingFast]

Definitely, as other's have suggested, gather all your bills together, sit down and go over what comes in and what goes out.

If you want to seek some professional advice, I'd suggest you use a DOJ approved Credit Counselor. You can find a list here:

http://www.usdoj.gov/ust/

In the BK Reform box, click on Credit Counseling and Debtor Education. Then select Credit Counseling. You can opt to use a National CCA or there may be a local office right near your home you can visit live and in person.

Possibly one thing the Credit Counselor will do for you is figure a Debt Management Plan. DMP. A DMP is similar to filing Ch 13. You cannot use Credit while in the plan. You make one payment to the CCA and the CCA pays your Creditors for you. The problem with DMP's is not all Creditors will participate. You may have a few that will accept the DMP and then still be required to make another payment outside the DMP.

I completely understand about getting a full time job, and day care costs eating your entire paycheck. That's just spinning your wheels with someone else raising your child. Not your morals and values being taught there. You could look into working a job, part time, during hours that your Hubby is off. See if that would be doable for you. Maybe bring in enough money/mo to buy groceries and maybe pay a small utility bill.

Consult with at least 3 attnys. Generally Consults are free and you can learn about your different options.

Research and learn. Look at all your options before choosing what to do. Make the best choice that works for you.