My husband had a very expensive live-in girlfriend way before he met me. She racked up alot of credit card debt on his credit cards, and left him with all the bills. The debt totals about 12,500, and I had absolutly nothing to do with it, but I have been trying to help him get out of it. I helped him go with a credit consolidation company, but we pay $550 a month, and it is still too much to afford. His dad told him since his credit is already trashed to go ahead and file for chapter 7 bankruptcy. I was against that in the beginning, but I am also sick of paying so much a month. We spoke with an attorney, and he assured us that my credit would be fine because my name wasn%26#039;t on any of the debt. Is this true? And what are pros and cons of filing for bankruptcy?
Chapter 7 Bankruptcy reprocussions?
What the lawyer told you is not a lie, it is not the whole picture. His credit history will impact you some what to some degree for the rest of your life. Don%26#039;t get all OMG over that. People, with a large amount of industry disinformation, let their credit history scare them more than is justified. That impact is very slight and the damage is already done.
You should have your attorney discuss with you the merits of each possible course available to you. Possible actions available you include negotiating a discount settlement with your credit card company. It could also include suing the ex-girl friend. You need to make these decision based on your circumstances in an unemotional state working with a train professional in the practice of bankruptcy. It is not a grave decision, but it is one that should be weighed before moving forward.
Good luck to you. You are not in as bad shape as you think.
Chapter 7 Bankruptcy reprocussions?
A very very long 7-10 years of not being able to get credit!!! Seriously you%26#039;d be better off with that small (I know you don%26#039;t see it as small, but it is) of debt for him to take on another job or odd jobs to pay more on. Do without more items at home too. My husband filed years ago and finally got out of it 5 years ago. Most people don%26#039;t file until their debt is well above $20,000
Chapter 7 Bankruptcy reprocussions?
Unfortunately, bankruptcy will no longer help with credit card bills. The rules/laws changed a few yrs ago. Too many people were getting over their heads with the credit cards then filing for bankruptcy. So, they changed it all.
As far as your credit afterward, it does mess it up. However, bankruptcy is so prevalent that you can still get credit even after bankruptcy. My husband and I filed many years ago. Within a year, I had another credit card.
Your best way to go (in my opinion) would be the debt consolidation or take out a personal loan with a lower interest rate and pay off the credit card bills with that loan.
Good luck.
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