Many questions before Attorney

[Jake480]

Like many other posters, I just found this forum. My wife and I are meeting with an attorney next week to discuss some options. Over the last two years, we have had a series of events happen to us.(who hasn't!) Basically between move across country, job that didn't pan out. I took a 60% pay cut. A small amount of time unemployeed and an additional child, we are way in over our heads. Income is now back to $46,000 plus any overtime. But our debts are $50,000. We have 3 young kids (4,2,newborn) so only my income. Of the above debts, $15,500 is car, $11,000 is Student Loan, balance credit card. I am at the point where I no longer sleep and we are constantly fighting about lack of money. We went into CCCS, but the $456 a month is not doable with new child. I have always had good credit(high 700's), but with one late payment interest rates went up. Anyway after this long message, my main concern is thatone cc with a $4600 balance is with my employeer(my employeer is also where I get my P&C coverage, investment accounts(nothing left in them but about $100), my Life Insurance and Banking. What I am trying to get a handle on is can this one card(along with car and student loans) be left out of bk? What is reafirming debt? Thanks for any info! I am feeling really low for doing this, I just can't see anyway out. Also will my kids Coverdel's and 529's be open to take?

Thank You
Jayson

[edwards2]

I don't know the answers to your questions about your children's funds but I do know about reaaffirming debt. We reaffirmed our cars and our house. It means you want to keep the cars and house thus you will continue to make payments on them. I know if you file BK you cannot include student loans; they are not dischargeable. As for the loan with your employer I am sure the moderator of this forum can answer that question. You are supposed to list all your creditors whether you reafffirm or not. You best bet is to consult an attorney;the consultation is usually free and see what options you have. We all do know how you feel; our circumstances leading up to filing may be different but the end result is the same. It is understandable you feel you are at the end of your rope - but you aren't. My husband and I fought about the lack of money too. We were inundated with medical bills from my husband's medical catastrophie over 3 years ago. We tried to pay the medical bills but we ended up borrowing Peter to pay Paul. It was a financial roller coaster until there was no more Peter or Paul and then we had to do something. We too had a high credit score until the outgoing became a lot more than the incoming. That sounds like that is where you are now. You have a family and they are your number one priority. Kids can't help but be affected by the financial strain you and your wife are under. Consult an attorney asap because I am sure you have heard the new BK law takes effect in October and it will be more much difficult to file then. Good luck...we are all here for you. We can truly feel your pain.