Should my wife file bankruptcy?

My wife and I have separate credit card debt as well as auto loans. We share the $900 rent and utilities. She brings home about $3500/mo and I about $3000/mo. I owe about $5000 on a refinanced auto loan that costs me $178/mo. My auto ins is $100/mo. I have $10,400 in credit card debt over 6 cards that I manage easily by paying more than the minimum monthly. I have a plan to pay off at least 75% of that cc debt by the end of the year because I would like to begin the mortgage qualification process in 2009.

My wife has about $50,000 in credit card debt over 10 cards. Three of those are severely delinquent. She has been playing the interest rate reduction game with the cc companies for some time now, but she also has other financial obligations due to a DWI conviction last year + a $700 car pmt +$125/mo insurance bill.

Should she cut her losses, file for bankruptcy and will this allow her more take home cash for savings? How does this work under our circumstances? Thanks.

Should my wife file bankruptcy?

Texas is a community property state. You need to discuss this plan with a BK attorney before you try anything.

Also, based on your wife%26#039;s income, she will fail the means test and be forced into a Chapter 13. There will not be a lot of money left over for savings.

You need to discuss this with your local BK attorney. Way too many variables in this to answer here.

Should my wife file bankruptcy?

What state do you live in. Since your married won%26#039;t it impact your credit too?

Should my wife file bankruptcy?

No work with credit counselor and maybe a AA counsel

you will still have to pay most of that debt off because the credit laws changed 2 years ago so then you will have court fees too

You will have a hard time getting a mortgage period but if one of you has a bankruptcy that could really hurt you.

Beware of high interests rates you might have to buy points if you have all that debt to get a lower interest rate on a mortgage.

Also you might get Pre approved for way more then you can afford take in to consideration all the fees, and taxes,could be any where from $3000-11,000 at settlement

lso so a $800 mortgage a month could turn in to about $1300-$1400 with taxes and insurance that you have to pay each month.

A house also has more bills then an apartment if it si larger

heating and such is more. along with all the bill you have now.

Good luck

Should my wife file bankruptcy?

It will affect your credit too because you are married.

Why on earth are you even with her if she has $50,000 on cards?? She definitely has some sort of problem and she%26#039;s dragging you down with her.

Should my wife file bankruptcy?

can you qualify for a mortgage loan without her income?

If so than she can think about it. IF you need her income to qualify then you would have to wait 7 years after filing.

Try contacting the credit companies or a debt consolidation company. Ask them to lower the interest and let them know you might have to file BK. They will have to close the accounts but it would be better in the long run as you will save in fees and int as well as no more new charges.

hth