DMP / Bankruptcy

[!Stressed!]

What is the name of your state (only U.S. law)? Iowa

I need some advice on bankruptcy. I was divorced just over 5 years ago and my ex and I ended up filing bankruptcy to finalize the divorce. I'm remarried, my husband owns our home (well, with a mortgage) and we've been on a DMP for 2 years and feel like we're getting nowhere. My husband has never filed for bankruptcy. We have quite a debt load. We've talked about bankruptcy but I wouldn't be eligible for Chapter 7 since it's been less than 7 years since I filed with my ex. Does anyone have experience with Chapter 13? Would you recommend it since we've been on a DMP? Here's a quick breakdown of our debt. Or do we keep plugging away at our DMP?

Husband's debt: vehicle $18,000 (worth maybe $9000)
credit cards $6500
mortgage $110,000 (never been late & want to keep)

My debt: medical bills/credit cards $16,000

 

[bigun]

DMP's that I'm familar with, project you out of debt in 5 years.If this is the case with you, I'd stay the course.
Noway I'd file bk over $6500 in cc debt. A DMP or a Chapter 13 both require you to get on a strict budget.
I'd suggest putting your finances under a mircoscope and chop away at anything that's not a neccessity. Also, can you and your husband pickup some OT or a pt or weekend job? Doesn't have to be forever. Just until you get this situation under control.

 

[!Stressed!]

DMP's that I'm familar with, project you out of debt in 5 years.If this is the case with you, I'd stay the course.
Noway I'd file bk over $6500 in cc debt. A DMP or a Chapter 13 both require you to get on a strict budget.
I'd suggest putting your finances under a mircoscope and chop away at anything that's not a neccessity. Also, can you and your husband pickup some OT or a pt or weekend job? Doesn't have to be forever. Just until you get this situation under control.

Thank you for the response, Bigun. We were told that our DMP was for 3 years. We ended up adding another card but also increased our payment over $130 than we originally started with. One CC had a balance of $300 when we started and today it has $370 balance even though at least $10 has been paid every month for 25 months now. That's why I think it is not working like they said it would.

Between my husband and I, we have over $20k in cc/medical debts. I separated the bills out because we don't have any credit together for some reason. Just the way it's worked out, I guess. Plus, our main vehicle now has 150k miles on it and he still owes $18000+ and it books for less than $9000.

We've discussed part-time jobs (OT isn't an option at our respective jobs and layoff is a possibility for my husband's job). However, I go to school 3 nights per week in addition to working full-time. We have 3 children so any part-time job income would be eaten up for after hours child care. Our families help as much as they can but there are health problems for both sides of the grandparents that prevent them from helping more. I think my husband already feels like a single parent because if I'm not at school, I'm studying

 

[bigun]

Bankruptcy doesn't seem to be the answer here.
More income and fast is the solution. You also need to look at that mortgage. If it's approaching 35% of your takehome-you likely have something you can't afford.
I'd suggest you take a couple of semesters off from school and your husband get over the single parent thing and find some pt work while you're at home with the kids. Like I said, it's not forever. Just until this situation is under control.
As to the DMP- I assume you're not continuing to use credit cards. Is the company affilated with National Foundation for Credit Counseling
Either way, make an appointment with counselor and demand an explanation as to why the balances are not going down.

 

[!Stressed!]

School isn't an option. My current job will be OVER in less than 1.5 years (maybe sooner). I have to have something to go back on, hence my reason for school. Even with my husband's job, we would qualify for welfare if I wasn't working. So that's not going to help us when the job change comes We have not used credit cards since joining the DMP in Sept 2007. Thank you for your comments.

And if my husband got a PT job (which he would gladly if the time wasn't an issue), his ex-wife would have him back in court so fast to increase child support that it wouldn't be worth it.

I explained our situation and just wanted advice on whether we should stick out the DMP (they finally told me it would be at least 30 more months) or whether BK is something we should consider.