In my opinion I would file Chapter 13. With your income and no children you would most likely qualify. With over $50,000 of debt. In 5 years if you can't pay it off it is going to almost double to $100,000 with interest and fees. I filed Chapter 13 many years ago and did a 5 year plan. I paid the full 5 years and 6 months after my discharge it was completely off my credit.
I sometimes don't understand the reluctance to file bankruptcy from people in this posisition, this is what it is for. I would rather take the hit for 5 years with a set monthly payment learn to live within my means and not have the stress of juggling all these payments, interest and risk of late fees and possibly court procedings if I couldn't keep up with the payments. Filing bankruptcy sucks but it is there for a reason. Like I said I had to do it but I sure learned I never want to be in that position again ever and it taught me a lot about living within a budget and the relief of not having the creditors constantly calling and not having to worry every month how I was going to come up with all of those payments a month and then seeing the payments increase as the interest started piling up was well worth the lump I took to my pride when I filed.
No one wants to have to file bankruptcy but sometimes it really is the best choice. My credit is better than it was before I got into credit trouble. I have a new house and good scores and plenty of available credit.
It would not hurt to atleast talk to a bankruptcy attorney and look at your options, especially if you're considering credit counseling anyways.
I'm so sorry! I hope you've been able to find out what it is secured by. Was the included in the $590 she stated you are in the negative every month or was that based on just the cc debt?
If there is one thing everyone on this board understands, it's the overwhelming feeling of dealing with the debt and creditors. Know that you are always welcome to come on here and vent away, if for no other reason, to give yourself someplace to do it! I can also tell you that you will get thru this. Whatever choices you make on how to deal with the debt, you will get past this. It may take some time but know there is light at the end.
OP, I commend you on how you're handling this and how you've been receptive to all of the suggestions. Bankrupcy is never an easy decision, nor is it always the right one. I also don't think the Ramsey method is right in all cases, but in your case it looks like a good start. There are so many here who would be willing to help you get through this. Absolutely the first thing to do would be to create a spreadsheet listing all debts in your name (or joint) and another with all debts in her name. You'll want card name, opening date, any fees, limit, balance and monthly minimum for each. This isn't for selfish reasons, but you should concentrate the most on cleaning up and paying down debt in your name first - this is so that your scores are able to support getting low or 0% APR balance transfers to get what I assume must be mostly 20+% debt down to a managable APR.
You listed a Discover card in your original post... $124 and $5000 I assume is minimum payment and balance? Discover usually ALWAYS has a 0% with fee 12 months or 1.99% with no fee 18 months balance transfer offer (you can check in your online account). With that loan that you just took out, I would pay off the Discover card in full then do the longest low APR offer Discover has available and absolutely max that card out (individual card utilization is one of the least of your concerns right now) having it deposited straight to your bank account, then look at those spreadsheets and decide whether you want to prioritize paying down the cards with the smallest balances first or the ones with the highest APRs. Then pay the absolute minimums on everything else to keep them current but throw everything you can on the other cards in the order you chose. You of course want to get anything late current immediately, and I would close the Credit One cards as soon as they paid to $0 (perhaps prioritize those regardless of where they are with balances or APRs) as they likely have high monthly or annual fees. Do any of the other cards have annual fees? That would be the only reason to consider closing cards at this point, otherwise I would strongly suggest keeping things open for the time being until your overall utilization gets to the 30% mark.
If you want to post those spreadsheets, many of us would be happy to offer our advice. Best of luck to you!
