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What is the name of your state? Indiana

My husband and I have about 35,000 in unsecured debt (mostly credit cards). We have tried several times to pay off most of the debts by consolidation, home equity, family loans, etc. and never could get enough to start over without debt. Needless to say, we have built up our debt again and maxed out our home equity. I want to stop this cycle by filing bankruptcy, but my husband is hung up on the stigma of bad credit ratings. He thinks the lawyer I talked to (who specialices in bk) is trying to get business. We are current on all payments, but have been behing before. We can make the minimum pmts, but have little left over. I'm tired of living from check to check. I know that if we can start fresh, we would have enough money to pay into a savings account and only buy with cash and change our spending habits. Don't you think this is our best option? I'd love to talk to someone who has been through bankruptcy themselves.

[HomeGuru]

Originally posted by mrs. brown
What is the name of your state? Indiana

My husband and I have about 35,000 in unsecured debt (mostly credit cards). We have tried several times to pay off most of the debts by consolidation, home equity, family loans, etc. and never could get enough to start over without debt. Needless to say, we have built up our debt again and maxed out our home equity. I want to stop this cycle by filing bankruptcy, but my husband is hung up on the stigma of bad credit ratings. He thinks the lawyer I talked to (who specialices in bk) is trying to get business. We are current on all payments, but have been behing before. We can make the minimum pmts, but have little left over. I'm tired of living from check to check. I know that if we can start fresh, we would have enough money to pay into a savings account and only buy with cash and change our spending habits. Don't you think this is our best option? I'd love to talk to someone who has been through bankruptcy themselves.

**A: stay tuned. Help is on it's way.

[bigun]

BK is all about numbers. Not just what you owe but, what you earn. First, would you quaify for a Chapter 7? If you have much over a $200/month left over after paying your normal bills {excluding the debt you're trying to discharge} you'll find a nasty Chapter13 is the only option. If you think you are living paycheck to paycheck now, you ain't seen nothing yet.
A lot of your problems seem to be living above your means. You get consoldiation loans or, home equity loans and then, jam those cc's through the roof again. If you're current and the interest rates are not too high, I'd suggest you do all in your power to stay current and dig your way out of debt.
I've never been bashful about recommending bk but, I feel it should be a last resort. The stigma is unimportant. The pragmatic affects are important. A bk filing cam affect your career prospects, your insurance premiums even, your access to insurance not to mention the rates you'll be charged for future unsecured credit for a few years.
You and your husband need to sit down and draw up a budget that forces you to live below your means and stick those cards in the sock drawer and start paying this stuff off ASAP.