@ewells1014 wrote:
Long story short, I'm in a heap of financial trouble. I have about $18,000 in credit card debt. Barclays Bank has decided to sue me for the $1,739 I owe them. I've been consulting bankruptcy attorneys about filing a Chapter 7 bankruptcy. The thing is, their fees range anywhere from $1,200 - $1,800 (plus the $350ish court fees) and none of them will do ANYTHING until they're paid in full. Honestly, if I had 2 grand available to spend, I probably wouldn't be in the financial mess that I am now.
Here's where it gets tricky: I'm pretty sure I'm what's considered "judgment proof." I have no assets and no income. I'm a homemaker and rely on my working husband to support the household. I also am not on either the mortgage or the car loans. My debt is my own. The only thing I have with my husband is a joint checking account. I have no property, no stocks, no retirement fund...nothing.
Chapter 7 would be the easiest thing to do because it would mean starting over, stopping this lawsuit (and any future lawsuits), and all of the collection calls and notices. However, it's the most expensive option. All the attorneys I've spoken with have told me they'll gladly file on my behalf, but nothing (NOTHING) will be done until they're paid in full. So in other words, if it takes me 8 months to save up enough to pay their fee, who the heck knows what could happen in that 8 month period of time. I'll definitely have the Barclays judgment against me, and maybe another company (or two or 5) will have decided to sue me in the mean time.
What's to stop me from just going to the bank, removing my name from our joint checking account, and getting on with my life??
^^^I have a different solution. $18k isn't that much. It is a ton if you aren't earning any income, but you can change that by getting a job. Even if you choose to be an Uber driver for a year, part time on the weekends you can earn enough to pay off the debt in full in about a year. Uber is an example, there are plenty of P/T jobs that would accomplish the same thing. A year of concentration beats a 10 year record of Bk on your credit report.
Then you can keep earning so you can start a retirement fund and stock purchases (or other investments). for your future.
Another alternative is for you to file a Ch 13 rather than Ch 7. You would still make payments monthly until the debt is paid, but it would get rid of the judgment. From your post, it sounds like you need to adjust your lifestyle a bit. I am not against Bk - but save it for larger events in the future - if ever you need it. A catastrophic health event is one thing. Filing on $18k seems like you ran out and spent the money and don't feel like paying it back rather than working to pay it back (JMO).
If the $18k is a shortfall of the household budget, then both you and your husband need to sit down and come up with a long-term plan so you don't find yourself in the hole another $18k in a few years.
