Let me give you a brief run down on my situation. I just basically am looking for advice.
Husband and I had been together for many years. Recently separated. I had lost job in May of 12. I have many credit cards - just really was starting to rebuild my credit and at that time my cs was about 650. I was the primary on the cards and Husband was an authorized user. Outstanding cards are walmart, macys, shell, american eagle, amazon, barclay, capital one. The only one at this point that I know is still active is capital one. I actually just found out the card insurance is going to cover it. So that is great news. Right now I am in the process of trying to call the other card holders. I just hung up with Old Navy they have referred it to Allied Interstate. That's a bit odd since I am receiving a bill still from Old Navy directly. My plan for the day is to contact all the others and see if I had any card protection on them.
Now as far as husband and I joint accounts we actually only have 1. It is my car loan through Chase which is current. I also have student loans that are not in repayment yet as I am still in school.
He has a personal loan through his bank against a CD as well as a loan to Honda Financial for a 4 wheeler. To my knowledge Honda hasn't been paid in months.
We have two homes both of which are paid. Basically, I was the only one working husband is on disability. When I lost my job the obvious solution was HELOC however, due to unemployment then we couldn't qualify. Debt compounded marital issues so now here we are.
We have a number of assets (vehicles, motorcycles, 4 wheelers, and tools) which are all paid for and I intend to ask Husband for the homes (low value) so that children and I can stay here.
My question is - I am considering Chapter 7 bankruptcy should I even bother with trying to contact these other card holders? Also should I include H debts so they do not come back to bite me later? I hate to say it but I am not really inclined to help him out in any way if not necessary. Much of the debt is basically from him and honestly if he is not credit worthy at this time at least that protects me from any further damage.
If I do get him to agree to giving me the homes should I file for bankruptcy now or wait until after the divorce? Basically, I am inclined to do it now so that I do not have an asset that counts against me. Currently, the home is only in H name and NOT considered marital property in our state.
Now as far as my goals, I want to do this as quickly as possible so that I can get back to rebuilding my credit. Essentially, I am going to graduate by next Dec. I will likely need a new vehicle. I would also really like to move purchase a new home within the next 2 years or so. I would use these as income and rent them out.
I hope all of this made sense. Also, if I decide to just pay everything down at this point would I be able to recover from the collections and charge offs in that time or would I be better to just deal with the bankruptcy?