Bankcruptcy/Debt Consolidation or 2Nd Child???

Even if you file bankruptcy, the laws have changed so you still have to pay back the debt. Besides, your husband "just recently" lost his job, according to you - there's no sense in getting yourself all wound up over this stuff if it may only be a temporary issue. He can still get a job at McDonalds while he looks for a permanent job. Also, most student loan companies as well as credit card companies now-a-days offer deferment or other options when you run into hard times. Look into working with these companies or consolidating your student loans to get a lower rate before you go trying to change everything and paying other companies to tell you how to do it. You also should probably consider a less expensive home or apartment, if it's that big a problem.

FYI - Student loans are typically not dischargeable in a bankruptcy, so unless the credit debt is the major portion of your debt, you would probably do best to negotiate directly with your student loan administrator. Virtually all providers have a program for people experiencing hardships (like a lost job) whereby you can reduce or defer your payments for a period of time until your husband finds work again. Just talk to them - they appreciate pro-active debtors.

Bankruptcy will not help you salvage your good credit score. Although delinquent accounts may appear "resolved," the bankruptcy will be reported in the "public records" portion of your credit report and represents a huge red flag to future creditors. Typically it means that legitimate lenders will not extend credit to you, but you will receive many offers from high interest rate predatory lenders because they realize that following a bankruptcy you will not be able to have another one for 7 years (meaning anything you owe them won't be dischargeable any time soon).

Just some factors to think about - best of luck to you and your family.

I'd skip the Bankruptcy attorney altogether. Not likely to help you.

I 2nd Financial Peace University. It will help you forever. The other two options you mentioned are only temporary.

I would file Bankruptsy. Thats alot of money. But the rules have changed but no you don't have to pay any back even if you file chapter 7. We just did this. People think the laws have changed and you have to pay, but thats wrong. They have changed but they only make it harder to file for someone who should not be filing. Nothing to do with paying back your debt. Thats your choice when filing. And I agree 7 years flyes by. And you need to ask the attorney in how many years can you buy a car or refy your home. They usually tell you around 2 years. This is a great way to clear your bad credit. Good Luck!

filing bankruptcy would be a really bad idea, and it won't get rid of your student loans.

paying someone to consolidate your debt is also a bad idea. you can do that yourself.

Do Financial Peace University and get out of debt yourself.

$ 80,000 is alot of money for debt ! who knows how long it will take you to get that paid off, with fee's, interest etc. & now that your husband has no job ! I would file Bankruptcy & have a 2nd child (don't just have 1 child, you will regret it down the road, like my friend did - her child turned out to be a spoiled BRAT !)
even though it will be on your credit, 7 yrs. will go by so fast ! Be stress free !!
Good Luck !
Blessings to you and your family !

I would not waste my money on either one honestly-bankruptcy follows you for so long and so many people I know that have done it regret for so long. I really recommend Dave Ramsey's financial peace univ. as well-take the money that you were going to use for the counselors and by the book Total Money Makeover by Dave Ramsey-so worth it. You are not alone! HTH.

I would also choose Fincially Peace univeritsy. I am currently working the program now.

To find out more about it, check out www.daveramsey.com

It really is the way to go.
H.

I don't know much about the debt consolidation, but bankruptcy seems like an extreme measure to me. If you contact your student loan administrator, you could probably get a financial hardship deferrment for a short period of time. I did that with my student loans when I lost my job several years ago and was able to resume payments when I got a new job with no long term financial detriment. As for the credit card debt...you don't say how much of that you have, but I do think that Financial Peace University could help you with that. If you take it through a church, it usually costs nothing except for the cost of the book and most provide childcare. My husband and I had a lot of credit card debt when we got married because we both had some from college and used credit cards to pay for some of our wedding expenses. We spent the first 3 years of our marriage scrimping and paying that off so that we would be in good financial shape to start a family. It took a ton of discipline on our part, but it can be done.

I am a firm believe in the fact that if you wait until you are completely ready to have a child, you probably never would, but in your situation, I feel like it's a little irresponsible to bring a child into your home when your financial situation is so dire that you are contemplating bankruptcy. Take a year or two to really buckle down and get your debt under control and then think about another child if your situation is better. Think about things like going to Starbucks or eating out (even fast food). These things consume a ton of money that doesn't seem like a lot at the time, but can really add up. Cut back on unnecessary expenses (reduce cable to basic, cut down on your cell phone bill by eliminating texting, web, or other options that aren't necessities). Every little bit counts if you use that to pay off your debt. Again, these are things that you could learn through Financial Peace University, so I won't ramble, but you really have to be serious about change if you want to make an impact in your debt situation. Best of luck to you and your family.