What will happen if I file for bankruptcy?

Question

I made some bad decisions in my late teens, and I had even worse luck. Now I am up to my ears in school, medical, and credit card debt.

Since much of these debts were the fault of my ex-boyfriend (an abusive psycho who would put all his financial stuff in my name, and then not pay the bills) ... my husband doesn't want to spend his hard-earned money paying off my ex's debts.

Now I am a stay-at-home mom with no income. What will happen if I file for bankruptcy?

And, most importantly, will it affect my husband's credit score?

Answer 1

Student loans that are guaranteed by the government are not dischargeable in a bankruptcy.  Only unsecured debt (such as credit cards, medical bills, etc. are).

You really should talk to a bankruptcy attorney, rather than seek advice here.  You can get a referral to a bankruptcy attorney from your local county bar association.  You might also be eligible for free legal help from your local legal aid office.

Answer 2

Ok, now lets give you a useful answer.

Your current home is in your husbands name (I assume) and all of the current debts are in his name.  You have your past debts in your (and your ex's) name.

If you file, it will not effect your husbands credit at all.  It will discharge your old debts, ad with luck those creditors will begin chasing after your ex for the money

In the meantime you can live off your new husbands credit.  If planned correctly, you can use his good credit to help rebuild your own credit rating.  

Sarge went it some detail about the bankruptcy procedure, but trust me.  It's not that bad.  The credit counseling is pretty straight forward  It can be done on-line or even over the phone.  The people I've worked with find it a total bore, but it is mandatory of you plan to file for BK.  Small price to pay to get thousands of dollars in debt eliminated.

But you do need to consult with an attorney before making a final decision.  As stated, school loans are not dischargeable.  and there are always glitches that can come up.

Answer 3

Hi,

I used "Credit Solution" to settle my debt and avoid bankruptcy.They managed to reduce my debt up to 58%.It's legitimate. I came across this company on NBC News Special Edition.Check it out here:

http://nanoref.com/linksynerg/oljMwQ

Answer 4

If these debts were incurred prior to your marriage, then they are your debts and will not affect your husbands credit score.

As to filing the bankruptcy, there are new rules and it is no longer an easy solution.

Bankruptcy Abuse Prevention and Consumer Protection Act of 2005

With limited exceptions, people who plan to file for bankruptcy protection must get credit counseling from a government-approved organization within 180 days before they file. They also must complete a debtor education course to have their debts discharged.

The Department of Justice’s U.S. Trustee Program approves organizations to provide the mandatory credit counseling and debtor education. Only the counselors and educators that appear on the U.S. Trustee Program’s lists can advertise that they are, indeed, approved to provide the required counseling and debtor education. By law, the U.S. Trustee Program does not operate in Alabama and North Carolina; in these states, court officials called Bankruptcy Administrators approve pre-bankruptcy credit counseling organizations and pre-discharge debtor education course providers.

Here is a link to locate an approved organization

http://www.usdoj.gov/ust/eo/bapcpa/ccde/...

Govt approved credit counseling agencies.

Unfortunatly student loans CAN NOT be discharged and To be eligible for Chapter 13, you must have regular income and debts below a certain level.

Your best bet is to consult with a lawyer who specalizes in bankruptcy

Hope this answers your question

LEGAL DISCLAIMER:  The advice contained herein is for informational purposes only.  It is not to be construed as Legal Counsel nor Legal Advice.

Answer 5

Hey hun.  I just filed a chapter 7 without my husband.  I am also a stay-at-home mom.  We only had one thing jointly and it was a home loan, but that was not a big deal.  As long as your income is not outrageous, you should be okay.  The only thing that will not be discharged is the school loans.  This will not do anything to your husband's credit score either.