Financial Opinion Question

With the additional shadow zone period added to the bankruptcy law time frame during the 1990s, the time period a bankruptcy can impact your ability to get loans has increased to either 10 or 13 years.

While the shadow zone extension time frame may not stop your getting a loan, the fact that you must disclose it , the credit reporting firms must keep it on your credit report and the bank or loan officer has the right to take it into consideration when deciding if you get the loan or not and what interest you may get , limits its impact but it still practically doubles the time folks are marked after defaulting on creditors.

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"I didn't have time to slay the dragon. It's on my To Do list!"

If you all can make the payments, bankruptcy is wrong!

Pay more on the debt if you can or save all you can while you all pay off the debt.

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Mortgage Underwriters

I can't help but contribute to paying his debt. We have a joint account and I handle all of the bills (at his urging). Even if I put his paycheck toward his debt that would leave my paycheck to pay all of the other bills, saving very little. Because of his debt we could never go "roommate style" on bills, he couldn't afford it. I am ok with that though.

[quote=fordy;6783219 Maybe you should cut him loose , (annulment) and let HIM deal with His financial problems , you had nothing to do with . , fordy[/QUOTE]

I am seeing this sarcastically and I get the point. I love him and no matter what happens financially I am in this for the long haul. He is a good man that hit a rough patch. He works hard and doesn't spend frivolously.

I think so too. Thanks.

He works very hard and brings home a pretty good paycheck. That was one of my criteria for a husband. Must work hard. I don't care what he does for a living or how much he makes as long as it is honest and his feet aren't up on my couch while I'm working all day.

Guess that is the bottom line. I knew it but I tend to be be impatient and want things now. We will do this the right way.

................All I can say he is VERY Blessed to be married to a lady with the devotion you have for him , we should all be so blessed ! , fordy

Why don't you look at the situation from the other side of the financial equation? Think about where you can cut expenses, freeing up $$$ to put toward the debt? With my ex, we built a small house (cash as we built) on a large chunk of land. we ate rice & beans, and PBJ for a few years to be able to do AND pay off the debt I brought with me.

"We want about 10 acres of land with a house to homestead. I know for the area that we want to be in that land doesn't come cheap because of the towns and tourist attractions nearby (Western NC Mountains)."

You have some conflicts. breaking them down:
You married someone with debt. If you went into that eyes wide open you now share it.
You decided the value of the marriage partner was greater than the negatives of the debt.
You WANT but do not NEED something that costs more money than you have available.
You can work to a point that this "cookie" is affordable.
You want to hold to your values.

In a case like this, I don't have any advice. YOU have all the advice you need, once you lay everything out so you can evaluate the needs and desires.

(FWIW, I would like a Delorean tricked out like the "Back to the Future" car. I can't afford it. Oh well.)

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George Washington did not run and hide.

You probably wouldn't be able to file bankruptcy anyway..

When you file, you have to show all your income, all your debt, all of your material possessions of value... etc..

Then they figure out if you can pay the bills or not.. In this case, it sounds like you are keeping up with the payments.. If they see that, they won't let you file. They can also make you sell things to pay the bills before wiping the slate.. .

I had to file for bankruptcy about 14 years ago.. Had a back injury and required two surgeries and no medical insurance.. I couldn't work either, SO.. i racked up some really serious bills..

One thing I had to pay off was a credit card, because there were whole goods that were purchased on it.. I either had to return those goods or sell them to pay off the card, or pay off the card and keep the stuff...

It also took me a LONG time to get my credit repaird and built back up.. I cost me stupid interest rates to buy on credit to build credit.. I had to pay 17% for a car loan.. and that was from a credit union.. I'm still with that union now, and can get cars for under 3%... but it took a lot of time and money to get back in good standing..

Pay the bills.. you probably can't file anyway..

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Kein Mitleid für die Mehrheit

Folks, please be nice. This is a new member and she simply asked for help in making a decision. No need to be rude and point fingers; especially since she already said she agrees they need to pay the debts.

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"Challenges are what make life interesting -- overcoming them is what makes life meaningful."

So right........... Geesh.

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For we used to ask when we were little, thinking that the old men knew all things which are on earth: yet forsooth they did not know; but we do not contradict them, for neither do we know.

The 1st thing you need to do is take a look at the debt you owe. What are the outstanding amounts for each one and what are the interest rates on those. Then you can start putting together a plan to deal with them. Try to negotiate both the amount owed and the rate. You can also try to get a bank loan to consolidate your bills which would also cut down on the interest you are paying. Remember to always pay down the loans with the highest interest rate 1st.

I've taught credit repair for the past 12 years for a nonprofit organization.

For many people, $25k is the equivalent of a car payment, so I would not recommend filing for bankruptcy. (Sometimes it has to be put into perspective.) However, I don't think you differentiated in your original post as to how many individual bills there are. By focusing on one bill at a time, he can probably negotiate a cheaper settlement with each creditor, provided he is prepared to make one or two back to back lump sum payments.

The key is to keep YOUR credit report/score intact. While a bankruptcy can leave a negative mark on your credit for 10 years, most mortgage companies will consider someone for a new mortgage after about 4-5 years after a bankruptcy, if they incur no new credit issues. If your husband has multiple charged off credit cards on his report from the ex-wife, then his score is already damaged about as badly as a bankruptcy would do. (The key to a successful bankruptcy is to file before your score tanks, but that's another story!)

If YOUR score stays strong, the two of you will be able to buy a property using only your credit information and BOTH incomes. This would hold true whether he files for bankruptcy or opts to find ways to settle with creditors.

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~TheMartianChick~

My latest novels:
Bystander: A Tale of the End of the World as SHE Knew It!

Christmas in Bystander & Other Village Tales

Coming Soon: A Slice of Heaven

The purpose of bankruptcy is not to erase debt, it's to protect assets. If you have no attachable assets or wages then you don't need bankruptcy. Keep in mind that debt can also be erased by not making payments and waiting for the statute of limitations in your state to expire the debt. If you have assets that you need to protect then you might consider bankruptcy.

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This is just wrong on so many levels!

Some of us have "attachable assets" whether we own any material possessions or not. Its called "Trust". My banker knows his money is well secured even without holding a mortgage or lien.... I gave him my word when I borrowed it. I somehow dont think filing bankruptcy would protect this particular asset.

The purpose of bankruptcy was not to protect the filers assets... It was designed to protect the assets of those who are owed... and to get a fair and reasonable division of them if the filer owed more than one person when they went bust.

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"Nothing so needs reforming as other peoples habits." Mark Twain

:shakesheadathowsomepeoplethink:

Matt

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Also know in some circles as "theft".

But if you have no problem with that system, I would like to "buy" a bunch of stuff from you. Have any nice cars or electronics?

Why is bankruptcy any better?

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I don't believe it is. I can understand negotiating - if the other party is willing to take less that is their choice. I can understand slow pay outs, because if that is the best you can do, then it is the best you can do. But I don't think you should try to get out of paying debts that you legitimately owe someone.

That's fine. My post was not a suggestion that people routinely look for ways to get out of debt, it was specific advice about bankruptcy.

If someone has already made the decision that he can't service his debt and is looking as discharging debt through bankruptcy, I was only suggesting that there may be other alternatives. Bankruptcy only makes sense when there are assets to protect, but the OP didn't mention assets.

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Tell that to Congress. Some stelar examples there of using bankruptcy to protect assets. At this point in my life, after seeing so much abuse of bankruptcy laws by the wealthy and a few regular folks (just a few mind you) I would recommended taking any and all steps to protect assets. It's a dog eat dog world. The cards are more and more being stacked against you and the rest of society. It's all about looking after No 1. Play the game, it's legal, after all. What else can an honest man do?

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Cause you know I'll only kick you out the door.

I've seen people who struggled for a long time trying to avoid bankruptcy. The credit card companies play games. They tell you that you need to be 2 or 3 months behind before they will negotiate so you skip 2 or 3 payments and call again. You're told you have to be caught up before they will negotiate.

There are a lot of legitimate reasons for bankruptcy that are not necessarily the fault of the person filing. Illness and divorce are two of the primary reasons for bankruptcy. If a creditor sues and garnishes wages which means you cannot pay your regular bills or buy food, bankruptcy can be your only option to survive. If the hospital bill is old they might accept a reasonable cash settlement.

In this case it sounds like they need to take a hard look at reducing all expenses to an absolute minimum and throwing every possible dollar at the debt. The self-discipline in doing so will certainly be a useful skill to help you succeed when you are able buy your place.

I agree with looking at Dave Ramsey's methods.

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This is the day which the Lord hath made; we will rejoice and be glad in it.