Debt Resolution Program Vs. Bankruptcy

[poorme]

There are 2 types of bankruptcy you can consider, ch 7 or 13. Presumably by now you know the difference or can easily find it. The biggest issue you seem to be facing is that you and DH aren't in the same boat on this, and the water is beginning to flow in over the top. Whether you file or not, what's the future of your relationship? Are you able to withstand this together? Are there children at home? The only sure way to stop the creditors cold is to file bk.

Unfortunately, you can't be choosy about which debts you include, they ALL have to go. These boards are filled with stories of people who've tried to 'exclude' certain debts and it just doesn't work. If your conscience bothers you all that much, you can always voluntarily opt to pay back the discharged debts later when your life is back on track. You don't necessarily have to lose your house - truth be known, if your banker was able to be honest with you, you'd be surprised just how many other account holders in his bank have probably filed too. Will you be less embarrassed when the sheriff shows up to serve you court papers in front of your neighbors when those companies start suing you?

Read the sticky's - they'll explain the process, but you owe it to yourself and DH to speak with a bk attorney also.

[treehugger1]

Shug, Push BOA for a five-year payoff plan at 2% or so interest. They DO have such plans. The downside with working with creditors is that they will almost never work with you until you are 90 - 120 days late and have acquired extensive late fees, default interest charges, etc. There is still no guarantee. The only way you will find out what they have to offer you is to go down the road. For me, the BK 13 option made it worth the risk of finding out. Every individual is a different case. The real empowerment comes from learning the bankruptcy "out," and not being afraid to file as a last resort. And, if you chose the route of "forcing their hand" to see what kind of plans they have available, your credit will be trashed in the process. I personally did not give a sh*t about my credit being trashed. And, the truth is, if you can't afford to pay everyone, semewhere you credit will suffer. Your job should be to get out of debt, not attempt to save your credit, which is what might have gotten you into your current situation.

BK 7 gets you out of debt quickly, BK 13 takes five years. Either way, your credit won't be protected in the near-term. Best to you!

[HeatherB]

Shug,

Mostly the reason people here say to contact an attorney is because bk has so many variables.

Your income, the state you live in, family size, debts, things you would like to keep (car, house) all plays into factor. We could all tell you, "heck yeah, file now" but that still doesn't mean that you will qualify. Hence the "talk to a local attorney".

Honestly, from what you have said, if you do qualify I would suggest filing (but only if you can't currently and don't see how in the future pay these bills back).

BK is a public record. Anybody who wanted to could find out if you filed.... that doesn't mean they will send all your friends and associates your discharge papers. Depending on the bank you go through, they will never know. Some banks pull credit reports, some only pull through chexsystems. My bank has NEVER mentioned my bankruptcy at all to me. Of course, if you are filing bk on a cc that the bank offered, then they will find out for sure and may possible close out your account with them.

Please keep in mind that this forum is not filled with attorneys and lawyers. Most of us are just people who have BTDT or are thinking about it/researching it. If you want true legal advice as to your current situation, he best and safest route would be to talk to an attorney.

I hope everything works out for you.

Heather