Should we just file jointly?

[Jess21]

Hello again, it has been a couple month,  I went to our bk attorney today to start making payments so I can file.  Originally, I had said it would only be me filing so that we could keep my husband's credit good, just in case.  There are CC in his name only with a balance, that we are still paying, about 8k worth.  We are living on one tight income and plan to keep our house and our car payment (we need the car, we have 3 kids).  The attorney recommends we just both file, they dont charge extra if its both of us instead, so that we can really get rid of all of the cc debt.  This scares me a bit, bc we would noo credit at all. On the other hand I start thinking that maybe we just need a fresh start and we dont need to be putting anything in credit anyway bc we dont have the income to pay back. I dont know, im torn, the idea of being losers with no credit also kills me.  For those of you that have gone through this, any recommendations?

[Anonymous]

You aren't going to be loosers with no credit. Your credit will most likely improve after you file. Starting with a fresh start and no debt is wonderful. You can easily rebuild credit after you file, you can follow the 24 to 700 thread. After we filed my credit bumped up 100+ points, my husband's credit about 50 points.

[Shooting-For-800]

It completely depends.

Can you afford to pay the 8k?

Do you have anything valuable to lose in the BK?

In some states, there are laws to protect marriage assets.  (Joint Tenacy)

These laws when used properly stop court from taking assets that are jointly owned with a non filer.

Do you qualify for Ch7 married?  Income under limit?

As far as building credit, 1 year after discharge you are better off than you were if you are missing payments.

It is tough mentally, but financially, there is upside.

You have to do what you believe in, not the attorney.

I filed without my spouse and was able to keep many items I would not have been able to keep.

This is especially true since my spouse makes much more money that I do.

My debt was also pre-marriage.

I went from BK to 700 in three years and have plenty of credit.  

Also just bought a car at 2.49% for 72 months which is lower than my local CU.

THERE WILL BE TIMES THE BK WILL HURT YOUR CREDIT APPROVALS!

But, with no debt, you can pay more cash, get other options, put more money down, etc.

Check out my CH 7 thread.

http://ficoforums.myfico.com/t5/Bankruptcy/Life-is-Good-After-Bankruptcy-7-Keep-the-Course-Keep-the-...

[Jess21]

Thank you all. We dont really have any assets aside for a vehicle that is only worth about 2k. We cannot pay the 8k. My husband is the only one working and does not make a lot. We still qualify for ch 7 with his income. We are trying to keep our mortgage which does have some equity according to tax value but still within the state allowed exception, and we want to keep our Van which we need bc we have 3 children including a special needs child that I need to take to dr appts. Of course the van has a lot of negative equity.

[Shooting-For-800]

I would def file jointly if you do not have to worry about qualifying or losing any assets.

Trust me.  The stress relief is a life changer.  

I know life will not be easy after BK but it will be easier than it is now.

There is def life after BK.

My biggest regret is that I did not file SOONER.

http://ficoforums.myfico.com/t5/Bankruptcy/Life-is-Good-After-Bankruptcy-7-Keep-the-Course-Keep-the-...

[Anonymous]

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@Shooting-For-800 wrote:

I would def file jointly if you do not have to worry about qualifying or losing any assets.

Trust me.  The stress relief is a life changer.  

I know life will not be easy after BK but it will be easier than it is now.

There is def life after BK.

My biggest regret is that I did not file SOONER.

http://ficoforums.myfico.com/t5/Bankruptcy/Life-is-Good-After-Bankruptcy-7-Keep-the-Course-Keep-the-...

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+1,000,000

[empressj]

Hi there,
We've been going back and forth about this same thing and decided to file jointly. At this point it would be the best way to go. I'm so nervous bc we've just paid everything in full. Now on to the bankruptcy class. We had to just do it bc I was afraid of the personal loan company garnishing my wages.

[Shooting-For-800]

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@empressj wrote:
Hi there,
We've been going back and forth about this same thing and decided to file jointly. At this point it would be the best way to go. I'm so nervous bc we've just paid everything in full. Now on to the bankruptcy class. We had to just do it bc I was afraid of the personal loan company garnishing my wages.

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Just so you know, they can not garnish your wages without a court order.

You get plenty of notice since there has to be a hearing that you can get to attend.

A lot of creditors threaten wage garnishment, most never go through the process.