What next ?

[OUTCH]

Ok, I'll try and make this as brief as possible:

Last year I found out that my husband built up quite some debt on his credit cards. He likes to gamble and over time, several years, had taken out cash advances and done balance transfers.

He had always handled and paid the bills on time I thought everything was just fine, but found out differently after the card companies lowered his line of credit and doubled up on minimum payment amounts which in turn exposed his debts, as he was unable to make those large payments.

Just about that time we also encountered large unexpected bills which made things even more impossible.

He stopped making payments on the cc in October.

He considered filing for bankruptcy - by himself.

Turns out that if he files, my income will also be counted, and I don't think that I should have to pay for his financial debts.

All of the debt is in his name.

We live in FL, a non communal state.

We have separate bank accounts.
Also in anticipation of possible further trouble he now no longer has his SS on direct deposit.

I have run the numbers and know that If he filed for bk, because of my income, he would be pushed into a chapter 13 with 100%.

His income only consists of SS an a small amount of occasional mandatory IRA withdrawel.

We are both up in age and all of our income is exempt from collection, and other then the exempt income there are no assets.

Considering that we are judgement/collection proof and considering our age, I am thinking that it probably would be best to just do nothing, meaning let the judgements roll in.

Am I thinking correctly ? Would feel good to hear any other ideas or suggestions.

[AngelinaCatHub]

Well your first problem (in my opinion of course) is your husband's bad habit. Can that be stopped?? This is more important than any other thing.

Now you say you are working? This wage is not protected from a garnishment. SS, and retirements are, and up to %500 a week to head of household is non touchable.

In a short form, it may be feasible to do what you asked and not file. Stay with us in the event things change as this place is good for information and past experiences. 'Hub

[OUTCH]

Thanks for your response. Just to clarify, I didn't say that I am working, I am not working. My income consists of SS and pension income, and is exempt as well.

[AngelinaCat]

You might want to line up three to four free consultations with attorneys for yourself and DH to ask specifically about DH filing alone and the impact of your income on his filing.

I, myself ,would not want judgments rolling in, even if I were 'Collection proof'. These things can be renewed at least twice and might last as long as 21 years. And if a creditor wishes to be especially odious, DH can be subpoened for Discovery regarding any type of assets. You both know you don't have any, but it is a harassment tactic. My DH and I have been through that. If your DH can file and get rid of that debt, I think you both would feel a lot better.

[OUTCH]

Yes, it is always a good idea to consult an attorney. Unfortunally I am quite sure I already know the outcome, which amounts to 100% repayment.

Have been reading an awful lot and running all of the numbers.

Of course I don't like the idea of judgements eventually coming in.

I am not too concerned about them possibly being renewed at least twice, as reality dictates that we'll not be on this planet that long.

Actually my concern is more to have enough money in our remaining time so that we are still able live, and enjoy life, without being totally squeezed financially.

I have brought up the idea of possibly settling with the cc for a small percentage. From my perspective that would be possible by my husband taking out some monies out of his IRA.
I understand that it is difficult to settle with the card companies. Also, there is always the issue of the 1099 forms that are bound to be sent.
In our tax situation anything like that would become taxable income, and paying the taxes could not be done all at once, we would have to pay the IRS over a couple of years.

Husbands total cc debt is about $ 50,000.

Overall, if it was possible to make a settlement arrangement with cc companies, that would actually be the best alternative to gain peace of mind and to get things over with in the most cost effective way.

-just rambling on-

[woeisme]

Are you sure you won't pass the means test? I thought that we didn't have to include our son's social security check as income on the means test, maybe your SS is also exempt (his is survivor's benefits because his Mom died when he was a baby).

[catleg]

Some of the tribal slots parlors are pretty awful (e.g. Immokalee).
On the other hand the Hard Rock Seminole is nice and scary close to populated areas.
I'm not sure if FL has any way you can "sign yourself out" of casinos. In NJ and PA you can self-exclude. Not NV though.
I'm not in favor of making repayment when money has been stupidly lost like this, the casinos and card companies are both predators always on the lookout for weak folks.
So if you can cope with the harassment I would just say stiff them.
But make no mistake you're putting yourself in position for years of harassment.
It can be emotionally debilitating. But it can also be liberating and empowering at the same time.
Just curious whether the gambling is related to any medications he might be taking. He doesn't have parkinsons does he?
By the way you are going to have to get rough with him. No more "going out for milk" for three hours and disappearing to the casino.