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Forum
-> Household Management
-> Finances
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amother
OP
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 Sun, Apr 28 2024, 1:34 am
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I overdid my credit card debt and I’m in a lot of trouble and my credit score is poor now. Husband and I don’t have the finances to pay the minimums. It’s been 4 months now of just interest growing and my cards are shut down. He used my cards too somewhat but I’m married less than a year and it’s old debt I’m paying for now, and poor spending. We don’t own a home or a car. I’m looking for a new job and husband trying to earn more too. We are not sure if I should declare bankruptcy or not. The other option is that I will get sued and work out settlements in court. But I’m 90K in debt now. Thankfully husband isn’t upset at me and sees this as our issue to tackle together. His credit is mediocre but building. We only will use his cards for emergencies. I know bankruptcy looks really bad on a report but doesn’t awful credit also?
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amother
Mustard
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Sun, Apr 28 2024, 2:21 am
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My husband in same situation he was told to declare bankruptcy
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amother
Latte
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Sun, Apr 28 2024, 2:22 am
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You should get advice form a professional not form Imamother
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amother
Lime
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Sun, Apr 28 2024, 2:26 am
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We went with bankruptcy and don’t regret it.
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amother
Steel
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Sun, Apr 28 2024, 5:29 am
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notshanarishona
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Sun, Apr 28 2024, 6:27 am
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Ask a rav, it’s not so simple that declaring bankruptcy exempts you from your debts
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amother
OP
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Sun, Apr 28 2024, 7:38 am
| amother Latte wrote: | | You should get advice form a professional not form Imamother |
Looking to hear people’s experiences not for them to tell me to file or not
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amother
OP
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Sun, Apr 28 2024, 7:39 am
| notshanarishona wrote: | | Ask a rav, it’s not so simple that declaring bankruptcy exempts you from your debts |
None of my debts are to Jews, only large credit card companies.
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amother
Lightblue
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Sun, Apr 28 2024, 7:49 am
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Are you legally married yet? Might be better off holding off on that till this is settled
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amother
Whitewash
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Sun, Apr 28 2024, 9:09 am
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We declared bankruptcy and we were able to buy our own house 2 years after that. Was the best decision to make and the process was very smooth bh.
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amother
Petunia
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Sun, Apr 28 2024, 9:19 am
| amother Whitewash wrote: | | We declared bankruptcy and we were able to buy our own house 2 years after that. Was the best decision to make and the process was very smooth bh. |
How were you able to buy a house? Bankruptcy stays on your credit report for about 7 years (in NY). It significantly lowers your credit score. How did you get a mortgage, or was it one with a high interest rate.
OP, Bankruptcy will impact your ability to get good rates for a home, cars etc for a number of years, but it will eventually come off your record. If you're newlywed, it may not be a bad thing for you as it will give you the opportunity to clean up your mess while giving you the time to reestablish a healthy financial future.
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amother
OP
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Sun, Apr 28 2024, 9:21 am
| amother Lightblue wrote: | | Are you legally married yet? Might be better off holding off on that till this is settled |
Yeah we are. My husband has a lot of debt himself from divorce
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amother
Mustard
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Sun, Apr 28 2024, 9:31 am
| amother Petunia wrote: | How were you able to buy a house? Bankruptcy stays on your credit report for about 7 years (in NY). It significantly lowers your credit score. How did you get a mortgage, or was it one with a high interest rate.
OP, Bankruptcy will impact your ability to get good rates for a home, cars etc for a number of yours, but it will eventually come off your record. If you're newlywed, it may not be a bad thing for you as it will give you the opportunity to clean up your mess while giving you the time to reestablish a healthy financial future. |
It stays in report but you can still get everything you can get a car and credit card a year later. With the debt she has she ain’t buying a house she needs to clear her debt and start over
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amother
Catmint
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Sun, Apr 28 2024, 9:31 am
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Consider that there may be income tax implications for the discharged debt - a professional can guide you.
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amother
Petunia
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Sun, Apr 28 2024, 9:48 am
| amother Mustard wrote: | | It stays in report but you can still get everything you can get a car and credit card a year later. With the debt she has she ain’t buying a house she needs to clear her debt and start over |
You can indeed get these things but not at good rates. If your credit score is low, the companies offer you good deals because you're considered a high risk. So you end up paying significantly more for your mortgage, cars and the like.
But since OP is a newlywed, she shouldn't be in serious need for a house and car just yet. And she shouldn't be considering credit cards until she fixes her current situation. So in her case, it may be quite beneficial for her to clear out her messy past now and taking the next few years to reset her finances. This way she will be on solid ground going forward. (As long as the couple doesn't repeat the negative financial behaviors.)
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amother
Celeste
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Sun, Apr 28 2024, 9:49 am
| amother Catmint wrote: | | Consider that there may be income tax implications for the discharged debt - a professional can guide you. |
Cancelation of debt is a taxable event but I'd rather pay tax on the 90k than pay the 90k off...
Also, my close friend just went through bankruptcy about a year and a half ago. Her credit is already at 700 and she's in the process of buying a apartment with a mortgage. Speak to a professional, for sure.
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ellacoe
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Sun, Apr 28 2024, 11:16 am
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Speak to a professional. There are certain tax implications but a professional can guide you through that. It would be a good idea to speak to both a credit consolidator and a bankruptcy attorney. See what each of them advise in your scenario.
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chocolate moose
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Sun, Apr 28 2024, 5:26 pm
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we had terrible trouble and looked for 2nd and 3rd jobs and scripted and pinched and got through it. did not declare bankruptcy - there are some debts that dont go away anyway. speak to a bankruptcy attorney before you make any decision
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