Bankruptcy vs living with judgments in Florida

[tomharris]

What is the name of your state?What is the name of your state? Flor

A question with thoughts on how to proceed....Any BK attorney I would ask will say to file CH 7, but I wanted to find a less biased opinion....

I have about $80K in credit card debt that accumulated from trying to keep a business going. Unfortunately, it is all personal debt, as with a small business, I couldn't secure any loans under the corporate vail. All savings (was more than that debt) were exhausted in the business. I currently am working and making about $60K/year, but haven't made enough to make min's on all cards. I stopped paying all of them about a year ago, and now have a suit pending, which will end up as a judgment (a smaller card).

My wife is not working, and cannot at this time.

Assets: Just personal items (No home, renting, both cars have no equity)

Questions:
1. In Florida, I know I am basically judgment proof, in that they cannot garnish wages (head of household), or hit joint bank accounts, or personal effects. Should I just continue to ignore the cc debt and let them get their judgments? How long do they last in Florida, and can they reaffirm them? We have tried to protect my wife's credit, so maybe in the near future, she can apply for a mortgage, etc....
2. If I decide (quickly) to file Ch 7, what are the chances that they will force me into a 13 due to my salary being about 75% of the debt owed? Will they want me to get on some lower payment schedule for that? Also, if I can do a Ch 7, will that negatively affect my wife's credit on our two vehicles that she is a co-borrower on?

Thanks in advance for any help!
Tom

[bigun]

It's my understanding that Fl. judgments are good for 10 years and then may be renewed for another 10 years.
Right now, there is no means test to file a chapter 7 bk. That's gonna change when the bk reform bill is signed. That provision will take affect 180 days from the date the legislation is signed into law.
$80K is nothing to screw around with. Once bk reform takes affect, you'll likely have a few more judgments to deal with.
Most bk lawyers give free initial consultations. Talk with a couple and get all of your options explained.
The 2 cars will have to be included in the bk but, the bk designation should not show up on your wife's credit report.

[Ladynred]

cannot garnish wages (head of household), or hit joint bank accounts

Where did you hear that they can't touch joint bank accounts ?? That is just not true. If your name is on that account, a judgment creditor CAN reach it and clean out the funds.

[tomharris]

Actually, when I said they couldn't touch my bank account, it is because it is in both my and my spouse's name, and by law, when setup properly, they cannot garnish funds if the creditor is only after one party. Any bank account that would be in my name only could be taken. I am meeting with a BK attorney to work on this, prob a ch 7 as I basically have no assets as most was lost on the business we had. Time to start all over I guess.