Need Advice

[Anonymous]

Currently have about $85,000 in cc debt over 6 cards (4 bank and 2 department stores)

Owe about $230,000 on on a $220,000 house (own jointly

2 children(11,14)

Wife- Full Time ($126,000/year)

Me-  Part time ($16,000/year)

We live in NJ

We net about $7000/month  combined.  Our minumum cc payments are $2600, mortgage and taxes are $2500.  Essentially we are about $500 short every month after evertthing is paid, meaning that we pay the cc minimums and than use whatever balance we have leftover to get by.

I was thinking about declaring Chapter 13 individually, since 3 of the cc's are in my name alone (accounts for $57,000 of the ($85,000).  We could certainly swing the remaining debt.

Does this sound like it would work and would they hit us for her income as well in determining our disposible income?  

[Pway]

I would suggest that you speak with a reputable bankruptcy attorney in your area.  They can give you the best information possible.  I don't see a chapter 13 possible with 16k annual income, unless you and your wife file together.  However if you file single they are going to recommend a chapter 7.  I am not an attorney but just lookinkg at the information given, that would be my conclusion.

[Shooting-For-800]

I would not do a 13 in your case.  

First, I would call all your credit cards and ask for 0% rates.  Explain you trying to avoild BK.  Some will play ball, some won't. 

All will once you quit paying them.

I would quit paying ALL credit cards except your favorite one or the one that treats you the best or the one with the lowest balance.

Then I would negotiate settlements on the cards.  You can pay 25-75% balances and close them out without BK.

Pay everything else like normal.

Ch7 is completely different that 13.  You are not gaining anything with a 13 since you are close to making your payments already.  

You will destroy your credit and be locked into a 4 or 5 year BK.  No thanks.

BTW - each state is different even though BK is federal but all will use household income for decisions. 

I am confident you will not be able to seperate your 16k income to pay bills, if you could, you would not qualify for a 13 anyway.  It would be 7.

[Anonymous]

I realize we are making the same payments already, but our balance is not going down.  A chapter 13, could  give us a clean slate in 5 years, but our credit would be toast.  Do you think a chp.7 on my cards which I've had for over 15 years before marriage would be the way to go?  

[StartingOver10]

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@Anonymous wrote:

I realize we are making the same payments already, but our balance is not going down.  A chapter 13, could  give us a clean slate in 5 years, but our credit would be toast.  Do you think a chp.7 on my cards which I've had for over 15 years before marriage would be the way to go?  

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As pointed out earlier, your total household income is used to determine eligibility for Ch 7 or Ch 13.

You may want to consult with a few bk attorney's in your area to see what your options are ... stay away from the 'mill' type attorney's if you can. Get an attorney that will be honest with you so you can make an informed decision.

[Shooting-For-800]

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@Anonymous wrote:

I realize we are making the same payments already, but our balance is not going down.  A chapter 13, could  give us a clean slate in 5 years, but our credit would be toast.  Do you think a chp.7 on my cards which I've had for over 15 years before marriage would be the way to go?  

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You would have a very hard time with ch7 based on your wifes income.  You bills are just not big enough compared to your income.  You are willing to make a 10 year decision, why not try negotiating first?  You could have a completely different situation in less than a year.