Update on my bankruptcy: It's not looking good.

[SeattleGirl]

I found out that because Washington is a community property state, even if I filed bankruptcy without my husband signing on, once my debt is discharged, the creditors will go after him, which I think it completely unfair. It's legal in the state of Washington for married couples to get credit on their own, in their own name; I don't understand why the other spouse then can get "punished."

I looked into filing Chapter 13 instead of Chapter 7; they said that both our incomes will be taken into account, even if I am the only one filing.

I feel like I'm between a rock and a hard place, and am basically ready to forget the whole thing, because MrSG does NOT want to file bankruptcy. I can't say I blame him, but my choices now are go ahead and do it and face his wrath (which again, would be unfair to him), or just give the whole thing up, and watch my paycheck get eaten away by garnishments (it's already been garnished by one creditor).

I really don't know what to do.

[PinkTiger]

1. There are several things you can do now.

If you have not already done so, go to bkforum.com and get acquainted. There are many people out there with similar situations and they can help. Second, you need to go see a bankruptcy attorney and find out your options. Third, you need to chill out. There are things you can do, right now, to make your situation better, even if you are being garnisheed.
Good luck and Godspeed. I have been through this myself, in 2004, and it was a much less horrible experience because of my contact with the bkforum. Also, I found a good attorney and he and I are good friends today, still.

[SeattleGirl]

2. I do have an attorney. He is the one telling me that my husband

will become responsible for my debt.

I thank you for the suggestion to check out bkforum, though!

Edited to add: I just bookmarked the bkforum.

[rumpel]

3. Here is another site

make sure you read this man's free e-book

budd hibbs

http://www.budhibbs.com/

Hang in there

[SeattleGirl]

4. Thank you, rumpel!

Appreciate it.

[rumpel]

5. It opened my eyes about this debt industry

the greed it feeds off of - and made me not feel like a criminal...

all this has to change - I would love to demand congress take a look at it - but seeing Dodd praise the president of Litton Loan Services last year - I almost fell from my chair. It is either ignorance or playing to the tune of big money and promises for an unenlightened politician. :(

Someday - justice will prevail. :)

[Why Syzygy]

6. I agree.

I think our debt industry is a racket and completely unholy. When I attended college as a mid ager, the guidance counselor warned us all not to indulge in student loans. He said it could ruin your life. I ignored the advice and can verify his prediction. Guaranteed means they will get the money no matter what happens to you. IRS, ditto.

edit: I find that my Christian background still colors my present feelings about many things. People making money without doing anything and wrecking people's lives in the process is against Biblical standards. That's why Muslims do not pay interest. Ever.

[SeattleGirl]

9. It is a racket, I agree.

You fall behind, and instead of really working with you, they pile on more fees and stuff, making it even MORE difficult to get out of debt.

[AZBlue]

19. Student Loans are one of my hot buttons.

Once we take back the WH, one of my main pushes will be for reforms and oversight. And not just reforms for current students - reforms for previous students, those of us literally drowning in the system.

I feel for you, SG. My financial situation is precarious - and that's putting a rosy face on it. So, I definitely feel some of your pain, although mine's a different situation.

Hang in there - there must be another route, I just have a gut feeling about it!

[AZBlue]

18. Bid Hibbs rocks!

He's an internet angel. :D

[SeattleGirl]

24. Nice to hear that!

[elleng]

7. Get a second opinion.

And I believe Ch. 13 requires you to consult with a 'counselor,' and that MIGHT give you ideas.

[SeattleGirl]

8. Ch. 7 and Ch. 13 both require credit counseling.

You know, the more information I get, the more confused I feel. There is a lot of contradictory information out there.

[rumpel]

11. SG

maybe this is a good thing...perhaps you are not meant to file, but will soon stumble on a different solution?
BK stays with you for so long, and the system continues to punish you. In the ten years, I could barely do anything, I was treated as a nobody.

I keep my fingers & toes crossed.

[elleng]

12. I'm sure there is, SeattleGirl.

Can't help beyond general rules; Bankruptcy not my specialty.

Best of luck.

[radfringe]

10. wish I could offer you some helpful information

but please accept my good thoughts...

[SeattleGirl]

15. Thanks, radfringe.

Much appreciated.

[stellanoir]

13. Oh sweetie

I've no familiarity with this sort of situation.

Never had a bank account for years. Was a cash only clown. But I'm uncommonly frugal and a lousy capitalist.

Anyhoo, I just feel that there is an option of which you are not yet aware.

Keep digging hon.

:grouphug:

[SeattleGirl]

14. I should adopt your way of life, stella.

Would save me a mound of headaches, that's for sure.

[SeattleGirl]

16. *UPDATE*

Did some further research on bankruptcy. Even looked on the King County Bankruptcy Court's website (King County is where Seattle is located.)

We could find absolutely NOTHING that said that my creditors would come after my husband once my debt is discharged. The court does need info on me and my husband both, to just look at the overall financial picture, which in our case, isn't very good.

It also said that if for some reason, the court denied me a Chapter 7, they would automatically look at Chapter 13 as an option.

So, I just told my attorney to go ahead an file. Bankruptcy isn't the best choice, I know, at this point, unless I win the lottery or something (and I don't play the lottery), it appears to be my best option.

Thanks to all of you for letting me weep on your shoulder for a moment, and thanks for the suggestions, good thoughts, etc.

:grouphug:

[I Have A Dream]

17. I just came here to lend my support, and I saw this. I'm glad...

that things are better than you had thought earlier. I hope that things go very smoothly for your from this point on, SG. I'm sending good energy your way.

:hug:

[SeattleGirl]

21. Thank you, IHAD

:hug:

[AZBlue]

20. Good for you - you persevered and found the facts!

Good luck with everything and hang in there! :hug:

[SeattleGirl]

22. Thanks, AZ

:hug:

[elleng]

23. SG, is 'we' you and your attorney?

Did he JUST look at the website? Isn't he a bankr specialist?

I hate to throw sand in your hair (!) at this point, but as you've found, its a VERY complex system. If he's not a specialist, I recommend finding one, in the jurisdiction. There may be much more good news available.

BEST OF LUCK!!!

[SeattleGirl]

25. The "we" I referred to is my husband and I.

And he is a bankruptcy attorney. I talked to him tonight and got clearer on what he was talking about.

[elleng]

26. Good,

Good luck, again.

[BlueIris]

27. And...sometimes it IS the best option.

Take that with the grain of salt you should considering that I've never had to do it, and like you, would strive to avoid it at all costs. But still—good for you.