CLINGING!

[Kree]

If you can tutor a high school kid for 20 bucks an hour 2 hours a week. That would be 160 monies in your pocket. Halfway there.

If you can't.  A few hours of uber saturday morning might earn the same.

[Anonymous]

<mod edit:  We can't discuss or suggest that here.  -UB> The result of that was more money was stolen from us, in addition to lost equity and investments, in the form of taxes to bail out criminal institutions that were declared TBTF. 

This being said, especially if one is to BK because they are in way over their head in frivolous debt (not saying this is OPs case!), it is extremely important to analyze and eliminate factors that contributed to the BK when moving forward. BK is a fresh start and a fantastic opportunity to choose to live a simpler cash based lifestyle, and learn to use credit not only responsibly, but to YOUR advantage!

[Anonymous]

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@Brian_Earl_Spilner wrote:
If you live in a community state, and the cards were opened after you were married, the creditors can come after you since she's judgement proof. Even if you aren't in a community state, they will try to get you to pay even though you aren't legally obligated, unless it was a joint application, Then they have every right. SOL doesn't matter for her as they can't get any monies. That being said, the negative accounts will stay on her credit for 7 years. In addition, they can still obtain a judgement in court for the debts, they just can't collect. Those judgements will stay on her report for 7 years.

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so_broke_it_hurts, love the name!  We're not a community state so that's good news.  They can try, but I can't pay.  Also no cards were joint applications.  In NY, I was reading that regarding the credit, it says the SOL depends on the state of the bank.  So for Discovery for example, the headquarters is in DE.  The SOL for DE is 3 yrs.  So does this mean once she stops paying it will show up for 3 yrs on her report then drop off?

[SOGGIE]

OP: Here is my suggestion, without the unnecessary sarcasm or criticism. Perhaps your spouse's lenders offer a Payment Hardship Plan. To get a better understanding of how it works, visit: https://bettercreditblog.org/secret-credit-card-company/

Best of luck to the both of you!

[Anonymous]

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@Jnbmom wrote:

She plans on defaulting on 26 cards? She "may' be judgement proof but as the other poster said laws may vary. Her reports will be a MESS for a long time. How much does she owe on all the cards?

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She owes about $50,000.  I think she would try and keep three but again, it's sitll a lot of cards to walk away from.

[Kree]

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@Anonymous wrote:

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@Brian_Earl_Spilner wrote:
If you live in a community state, and the cards were opened after you were married, the creditors can come after you since she's judgement proof. Even if you aren't in a community state, they will try to get you to pay even though you aren't legally obligated, unless it was a joint application, Then they have every right. SOL doesn't matter for her as they can't get any monies. That being said, the negative accounts will stay on her credit for 7 years. In addition, they can still obtain a judgement in court for the debts, they just can't collect. Those judgements will stay on her report for 7 years.

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so_broke_it_hurts, love the name!  We're not a community state so that's good news.  They can try, but I'm not going pay, since no cards were joint applications.  In NY, I was reading that regarding the credit, it says the SOL depends on the state of the bank.  So for Discovery for example, the headquarters is in DE.  The SOL for DE is 3 yrs.  So does this mean once she stops paying it will show up for 3 yrs on her report then drop off?

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the SOL is how long they can Sue her. In NY it will remain on her report for 6 years I believe.  (7 years everywhere else, someone else might correct me.)

[Anonymous]

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@Jnbmom wrote:

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@Brian_Earl_Spilner wrote:

If you live in a community state, and the cards were opened after you were married, the creditors can come after you since she's judgement proof. Even if you aren't in a community state, they will try to get you to pay even though you aren't legally obligated, unless it was a joint application, Then they have every right. SOL doesn't matter for her as they can't get any monies. That being said, the negative accounts will stay on her credit for 7 years. In addition, they can still obtain a judgement in court for the debts, they just can't collect. Those judgements will stay on her report for 10 years.

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  Aren't judgements renewable as well?

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I think they are only if she promises to make payments or agrees verbally to the creditor or collections that they are her debt and then it will renew again from that point.  Someone please correct me if I'm wrong.

[Anonymous]

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@Anonymous wrote:

No she can't go to 0, the lowest FICO score is 300, I've seen posts by people in the 400 & 500s that are desperately trying to rebuild. I'd bet their advice would be to minimize damage, don't see how low she can go. 

I know a few questions the more experienced members will ask you. What cards do you have? What are their CLs, and how much do you owe on each one. Which cards can you pay off? How much can you pay towards each one?

I'm not an expert, I'm pretty new to credit. But, I think your idea of her having one card is a very good idea... at least till you and your future family are in that new house in your future. Defaulting on all your cards will only make your future more difficult. Try and do the most you can now. 

edit... "26 cards gone, being on easy street"  Do you mean defaulting on all of them, or shutting down. trying to pay?

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I didn't know all those questions would matter.  This credit stuff is intense.  She wanted to keep the oldest card  JCP mastercard which she owes ove $6,000 (I think $200 available) and keep one of her capital one cards which she owes $800 ($300 avail).  The problem is how do we minimize damage if we pay some and can't pay others and some meaning the 2-3 that she will keep. 

Easy street meaning not paying for most of them.  Shutting down and trying to pay for all the cards can't be done any longer.  No money to spread around the min payments any longer.  We've been trying this for 6 months since the disability and we don't even have an extra dime.

[Anonymous]

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@Brian_Earl_Spilner wrote:

Something else to keep in mind, if she got those cards and limits prior to becoming disabled and going on a fixed income, she will probably not be able to come close in the future because of the fixed income. 

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Sorry, what do you mean by come close?

[Anonymous]

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@Jnbmom wrote:

I am sorry but stating if you default on these cards you will be on "easy street", sorry but that just doesn't seem right. Not trying to judge but that doesn't sit well. 

I understand how debt can accumulate believe me, we had a job loss and we were living beyond our means, I tried for 2 years to pay what I owed but finally had to declare BK, toughest thing to do but it had to be done and I sat back for years before I got back into the credit card world and now I am overly careful with our money/debt.

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I understand, and just a poor choice of words, but please understand for the last 8 months, I've not slept, lost weight because of not eating, worrying every minute.  99% because of my wife's condition and 1% because of the cards.  I just need a break and if I can concentrate on her health and forget about the cards for a sec, that's easy street to me.  One less thing to worry about!