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WALLSTREETESQ
WALLSTREETESQ, Attorney
Category: Bankruptcy Law
Satisfied Customers: 17080
Experience:  14 years exp., CH 7 AND 13 Bankruptcy cases, AFL-CIO UNION PLUS, UFT NYSID AND ALL MAJOR UNIONS
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I have acquired $60K+ in credit card debt since I got married

Resolved Question:

I have acquired $60K+ in credit card debt since I got married a few years back. Prior to getting married I had NO credit card debt. I have a mortgage on my house with very little equity in it since the market dropped. I can't get a home equity loan to consolidate the debt to pay off since the equity in my house doesn't even come close to covering the debt. I have a secured car loan which I want to keep.

What are my options in regards XXXXX XXXXX law? I want to pay this back without ruining my credit rating.

Thanks
Submitted: 4 years ago.
Category: Bankruptcy Law
Expert:  WALLSTREETESQ replied 4 years ago.

WALLSTREETESQ :

Hello I am a licensed attorney here to help you with your question, please review my response and do not hesitate to ask for clarification.




Customer:

Hello

WALLSTREETESQ :

In terms of options, a chapter 13 or chapter 7 bnkruptcy is an option, also a debt consolidation may be possible as well.


 

WALLSTREETESQ :

In terms of a chapter 7 bankruptcy, that would eliminate all your debts, and you could keep your home and car if you can make the monthly payments.


 

Customer:

I tried debt consolidation using my house as collateral. Since there is not enough equity I can't do that.

Customer:

Chapter 7 reflects badly on a person correct?

Customer:

What is Chapter 13?

Customer:

I can definitely afford to keep my home and car, but the credit card debt my husband (soon to be ex-) ran up I cannot

Customer:

hello?

Customer: replied 4 years ago.
Chapter 7 reflects badly on a person correct?
What is Chapter 13?

I can definitely afford to keep my home and car, but the credit card debt my husband (soon to be ex-) ran up I cannot.

Thanks
Expert:  WALLSTREETESQ replied 4 years ago.

A chapter 13 is a payment plan bankruptcy, and does not hurt your credit as much as a chapter 7, however, you would have to make payments over 60 months to your creditors. The monthly payment will depend on how much disposable income you have every month after paying off all your monthly expenses.

So you could end up paying as low as 5% of the credit cards over 60 months.

Customer: replied 4 years ago.
How long would a Chapter 7 & 13 stay in my credit profile?

Would you recommend one over the other?

Are there standard fees involved for filing bankruptcies?

How long does it take to file the paperwork?

Thanks again!
Expert:  WALLSTREETESQ replied 4 years ago.

A chapter 7 would remain on your credit report for up to 10 years and a chapter 13 would remain on your credit report for 10. However, your credit score after a few years could be the same as it is now. Having a perfect score would be difficult.

A chapter 13 is for wage earners, so if you can pay your mortgage and your secured car, and you have income to make a payment plan, that may be best, XXXXX XXXXX 7 is for individuals, who cannot afford to make any payments on their debts.

The fees range from $350 for both Court fees with the required filing certificates, however if you plan to use an attorney expect to pay $1000-$3000 in legal fees, a chapter 13 is more expensive.

Paperwork can be processed and the case filed in less then a week.

WALLSTREETESQ and other Bankruptcy Law Specialists are ready to help you