What to do?

[bleepball]

My husband and i have under 480 credit scores. He has a foreclosure and a repo in the past 2 years (messy divorce) and about 10,000 in other debt cc, merchandise, medical. I have about 14000 in cc debt, i have a vehicle i am paying for and is in good standing. my father in law co signed for my husband work car and we are in good standing on it. we rent. only 1 income. do we attempt to pay off my debt first with cccs or another agency and attempt to purchase a home (our ultimate goal) i have never purchased a home. or do we file bk??? i stay at home with our daughter, we will have a nice tax refund which would put a dent in debt but is it worth it? my husbands house shows almost 100000 lost....what do we do?

[lrprn]

Welcome to BK Forum, bleepball - glad you found us!

My husband and i have under 480 credit scores. He has a foreclosure and a repo in the past 2 years (messy divorce) and about 10,000 in other debt cc, merchandise, medical. I have about 14000 in cc debt, i have a vehicle i am paying for and is in good standing. my father in law co signed for my husband work car and we are in good standing on it. we rent. only 1 income. do we attempt to pay off my debt first with cccs or another agency and attempt to purchase a home (our ultimate goal) i have never purchased a home. or do we file bk??? i stay at home with our daughter, we will have a nice tax refund which would put a dent in debt but is it worth it? my husbands house shows almost 100000 lost....what do we do?

From the debt situation you are describing, trying to purchase a house right now would be about the worst thing you could do. The only lenders that will touch you will slap a very high interest rate on the mortgage, which will likely push you over the edge eventually making your credit situation even worse.

As far as bankruptcy goes, keep in mind that since your father-in-law co-signed for your husband's vehicle, if you declare bankruptcy, then your father-in-law will be held responsible for the debt unless you reaffirm the loan to continue paying it after you file until it's paid in full.

It will help a lot if you and your husband will make appointments for free consultations with experienced bankruptcy lawyers in your area. You will leave with a much better idea of what your options are. You are in a very tough situation at the moment - I hope you will be able to find a way out that eases the considerable financial pressures you are under. Please come back and let us know what you find out, and remember we're here for venting and support whenever you need it!

[bleepball]

Would the cars be considered assets and are we at risk for losing them? i owe what mine is worth give or take about 1000. not bad but we are bad upside down on my husbands but he uses it for work and we have to have both, he works in chemicals and the car smells of them therefore we cannot put our daughter in it.