Your Opinion (Long)

[i'mscared]

Okay, I'm new and my husband and I are thinking of filing for bankruptcy. I need help on deciding to file or try to do some sort of debt counceling. here is our situation: I'm 23, my husband is 26. About 3 years ago, before we were married, my husband became ill. he was diagnosed with an auto immune disease called Pemphagus which attacks the skin. This started a long list of medical bills. He was fired from his job and basically black listed. he is now recieving Social Security Disability (which is only $750 a month) and I am working full time (only about $1060 take home a month) We are living with his parents and have about $33,000 in debt (this includes my lease car, all of our credit cards, and a loan we took out). We barely have money left over in a month to buy gas to get me to and from work. we pay no rent, gas, electric, cable or groceries thanks to his parents. what should we do?

[HHM]

You said the $33,000 was credit cards, car lease and a loan, what about medical bills or are they all paid? Incidently, you say you don't pay any household expenses (no rent, utilities etc), but that you have no money left over at the end of the month, where is it going?

You need to look at it this way, what else can you really do...? Your combined take home pay is $1,810 per month, and your facing $33,000 in debt and rising. To give you some perspective, your debt is 1.5 times your annual income.

Debt consolidation is basically a loan that combines all your debt into one loan, these are usually done as 2nd mortgage on a house, and you don't have a house, so I don't think this is really an option for you. And with your income, I doubt you could get an unsecured consolidation loan for the total amount of your debt.

Consumer credit counseling is where you go on a repayment plan that is pre-negotiated by the credit counseling agency, but your minimum payment would be at least $550 per month (but probably a little more)

Based on what you have shared so far, I don't see you really have a choice but to declare bankruptcy, what else could you do?

[Genenco]

Well, first of all, accept the fact your credit rating is shot, kaput and kablooey! NOw, find a attorney/Lawyer who you feel can do the work right and file NOW.

Believe me, in 10 years, your situation might get worse, may get better or may be fantastic and in that time, you can rebuild..Slowly, brick by brick.

10 years may seem bad, but how would garnishments and such be? You're much better off wiping out the bills you can and restarting...

Best of luck and don't worry, focus and day to day living and do not worry about the future...

[i'mscared]

thank you for your responses.. the whole amount of our debt is including the lease car, credit cards, and a loan. the rest of our income goes to medical bills (which i forgot to mention before) and my husbands car payment which is $410 a month for a crappy ford taurus! my husband needs to be on several medications which vary in cost plus mine. and then there is the normal expenses like gas, groceries.. etc. we have decided to file though. our meeting with the lawyer is on tuesday. my parents in law got a loan for the amount we need to pay the lawyer ($750) and we will be repaying them after we file. i hope this all goes smoothly. thank you all for the responses.