Help with Bankruptcy Concepts

What is the name of your state? Ohio

My wife and I got into some financial troubles in college and now we are facing 15,000-20,000 of credit card debt. Our student loans are all in good standing but the 15,000-20,000 credit card debt is not. I have some that is charged off and delinquent and she has some that is not charged off but delinquent. We are currently in a program that is a credit counseling type deal but after 7 on time payments we get a loan for consolidation.

I have heard that credit counseling is worse than bankruptcy because of the amount of time that it takes. The other thing is that we want to buy a house (we currently rent, and have no car payments) in a year or two. What is better in the long run, paying off debts or claiming bankruptcy? After filing bankruptcy what happens to all the debt , is it wiped out? I have a lot of questions.

[Ladynred]

First read the FAQ on this site about bankrutpcy, that should answer a lot of your questions. You can also try [url]www.thebankruptcysite.com,[/url] there's lots of good info there as well.

Student loans are not dischargable, so you'll be stuck with them. Unsecured debt (credit cards) ARE and would be wiped out with the discharge of a BK.

Credit counseling isn't good for your credit report. Your CR gets flagged and lenders don't like it.

After BK, if you have 2 years of squeaky clean credit, you can usually get an FHA or some similar mortgage that is NOT score-driven at a reasonable interest rate.