I have over 100k in credit card debt and no job.
First you need a job! Any ol job will do it doesn't have to be your dream job, you are just going to have something coming in in order to make significant payments against your debt.
I own a car worth 25k and a condo which is mortgaged up to the top (95%).
If the car is paid for I recommend selling it for as much as you can quickly. Take $5000 of the money you make and buy yourself a used car that will get you safely from point A to point B with out needing repairs.
I have never missed a payment or made a late payment and I have a credit score on the mid-600 range. I got married last year and my spouse makes an ok income. I quit my job to work on a business and I was borrowing money on my cards for the business (and to live on while I was trying to run it). The business has made nothing.
Sell anything you haven't used or have bought for the business and use that money to pay off your debts.
Needless to say, I'm very stressed out about the debt. I would like to settle this debt and have a few questions:
1) What percentage will the creditors take to settle in cash ASAP? I've heard everything from 20% to 60% of the principal.
You don't want to settle the debt for less than you owe until you have done everything you can to pay for it first.
2) What will happen to my credit score? Specifically, how much will it drop?
If your credit score is only 600 now with no negatives on it the damage will be ALOT!
3) How will this affect my spouse's credit? We only have a bank acct in common - no cards or loans.
4)What will my credit report have listed after the settlement?
Settled for less than owed
5) I have the same questions about filing chapter 7. What happens to my spouses credit?
I know I made some big mistakes - and I have already changed many of my habits to prevent this from happening again.
Thanks again in advance!!!
I know your intention wasn't to go into debt and not make any money but thats what happened. It is happening to a lot of small business owners right now. Just from reading what you have written you must have an AWESOME wife to be the only one working and paying for all of this and she hasn't made you go get a job yet.
It isn't fair to put all this on her you need to make steps to correct this. Regardless of whether or not it will affect her credit report it still affects her financially, emotionally and eventually physically.
I REALLY don't think you should try to settle this for less than owed until you have really done everything you can to pay it back.
