What to do with the debt i'm in?

Question

I have about 30,000 in debt most is credit card debt that has been in collections for two years now. And the rest is my husbands school loan. I have 20,000 in equity in my condo but the condo is not selling.

I have horrible credit because of falling behind on credit card payments.

which started when I went through a divorce with my first husband.

I don't know if I should file bankruptcy ( which I don't want to do ) I just feel stuck. Please give me some ideas...

Answer 1

Sorry to hear about this, you are not a lone. Millions of people are in the same boat.

I don't know if you had a recent appraisal on the condo, because as you know, real estate prices have plunged in many parts of the county.

If you are looking to sell the condo, you are going to have to take a bigger drop in price to move it.

I don't know what your payments or loan balance is on the condo, your over all income picture, etc., so it is hard to evaluate this risk here.

If you decide to file BK, depending on the state you live in, the condo could be at risk. Some states protect equity or the entire primary residence, others do not. If the condo is not a primary residence, it is more than likely to be attached by creditors in a BK filing. I'm surprised this has not happened already.

I don't know what your last marital situation was and what the Court order says for who has what debt from the marriage.

Also, if you file BK, and you are married, it generally will effect both people. You need to first separate all assets from each other (legally). An asset protection attorney can help here.

Then you can talk to a BK attorney after waiting I think it is 12 months after the asset transfer to file a BK if that is what you choose.

Here are some resources for further reading

http://www.fair-debt-collection.com/fair...

Statue of Limitations on Debt Collection

http://www.fair-debt-collection.com/stat...

Go get the legal advice I suggested.

Good Luck!

Answer 2

Firstly I want you to know that you are not the only one! There are many people in debt so try to stay a little calm as far as that goes.  I would consult with a financial advisor or someone who can help you take the steps to clear out your collections. As a matter of fact sometimes certain collection agencies are willing to work something out with you so talk with them and arrange something that both of you can work with. It is very nerve bracking and stressful, I know. There are also websites that give you advice on how to begin the process, and ofcourse saving so that you can have money for emergencies.

Answer 3

Very interesting question, if it were me, credit already in the toilet, cards already in collection, I would file bankruptcy, but that's me.

If you are truelly looking to pay back your debt, the honorable thing to do, then you should contact the credit card companies, get them to stop charging interest on the balance, and put you on an affordable payment plan.

Answer 4

try taking out a loan with a the bank to pay back all of your DEBTcards (no point in calling them "creditcards" since it just accumulates debt) and cancel them.

Answer 5

Find a good job?

Answer 6

Start saving and stop spending. You're in debt for a reason. Don't use your credit card if you can't back it up. Stop buying anything that isn't necessary. Make a list of what you buy approximately each month and see if you can't cut some of them off your list. Filing bankruptcy will affect you forever, so start saving money!

Don't get a manicure or haircut, do it yourself or have a friend help you. Don't go out to eat as often. Don't buy drinks, carry your own bottled water. Don't go to the movies, rent them. Do your own laundry and don't go to the dry cleaners. Don't buy clothes that you don't need.

Answer 7

t's no secret that credit card debt has become a major problem facing our economy today. If you're one of the millions of consumers suffering from major credit card debt, then you're probably desperate to get your massive bills under control. But the options seem limited; you probably think that it's almost impossible to make your paycheck stretch enough to get a handle on all of your debt. It can be easy to let credit card debt take over your life - don't let it! Whether you had an accident and had to live off of your credit cards for a few months, or just weren't smart with your debt, there are ways that you can control your debt and pay it down - without asking your boss for a 50% pay raise! Here are the best tips for credit card debt consolidation. Put down the credit card.

http://www.worldbestloans.com/bad-debt-c...

http://credit-cards.awardspace.com/

It may seem like common sense, but if you're still charging purchases, you will never escape your credit card debt. Hide your credit cards and use your debit card to make your everyday purchases - you'll soon spend well within your budget! Cut down on luxuries: Do you eat out for lunch everyday? Do you absolutely have to have that four dollar latte every morning? Luxuries like these are exactly that - luxuries. When you're trying to get rid of credit card debt, you have to give up a few unnecessary luxuries. Try bringing your own coffee to work, or make lunch at home. The peace of mind you'll have once your debt is gone will definitely be worth it.

Answer 8

Know your own budget....don't spend much more than what you earn. Credit cards are tempting...you can use it only for an emergency use but not for something like you can pay for cash...learn how to manage your income...don't depend on credit cards. And you don't wanna loose your condo for sure.