Should I file?

[Nikki74]

I don't know what to do???

What is the name of your state? Missouri

I am considering filing for Bankruptcy. I have found myself to have way more debt than income. My husband is trying to get disability for his back and I am the only one working and we have two children together and he pays child support on his daughter (which is 7 months behind). I have tried refinancing but don't have enough home equity. Everyone tells me my debt to income ratio is too high. My credit cards are just about maxed and even the minimum payment is killing me. My total credit card debt is $13,519.16. I owe $62,155.54 on my home that I just bought in May. I owe $11,696.31 on my student loans. I only make $13,000 a year. My husband has been buying and selling stuff to make ends meet each month, but it's not so easy to come across someone wanting to buy all the time or coming across something that can make money. I just don't know what to do. I don't want to lose my house. We both have vehicles that are paid off. I don't really want to lose them either. Please, any advice?

 

[Ladynred]

If you only just purchased your home, then its unlikely you have enough equity that it would be at risk if you filed for bankruptcy. Exemptions are available to you.

How old are the vehicles and how much are they worth ? Get a BLACKBOOK value, not blue-book.

Go here and take a look at the MO exemptions:
http://www.thebankruptcysite.com/exemptions/missouri.htm

The homestead exemption is $8000 and if its deeded as 'tenancy by entirety' it may be safe under that provision as well.

Vehicle exemption is puny, only $1000.. so its possible your cars could be at risk. There IS a wildcard that can be used for ANY property that you may be able to apply to your vehicles.

I suggest you read the other information at that site, its a good source to learn about bankruptcy.

Then I'd suggest you call around for 2 or 3 free consultations with BK lawyers - most give them.

 

[Nikki74]

Our vehicles are 1999 and 2000. I'd say they are worth 10,000 for the 99 and 15000 for the 2000.

Also, do you know of any real good consolidating companies? Have you heard of Consumor Credit Counseling? Someone gave me their number a couple weeks ago.

Bankruptcy has to be a last resort. Thank you so much for your help.

 

[Ladynred]

Bankruptcy SHOULD be a last resort.

However, CCCS can be a huge trap as so many of them are nothing but SCAMS and will drive you into bankruptcy anyway - after they ruin your credit. Its sad to say that about 90% of the CCCS companies out there are bad news - they only help themselves- to YOUR money. Consolidation can be even worse, but are generally not a good idea either.

Before jumping into CCCS, do a LOT of research on the company and CCCS in general. You want one that is truly non-profit (no hidden 'mandatory donations') and one that has a good success rate with creditors. Keep in mind that no creditor is obligated to work with CCCS and not all will.

 

[Nikki74]

I found out that Consumer Credit Counseling is Non-profit and it's free. So I am going to check into it. I just hope they don't want me to sell a vehicle. I know we could get something cheaper, but these vehicles are paid for and have been very dependable. Thanks again.