Hello,
We had great credit until this year. We had to enter a debt management program with CCCS. We owe a huge amount of credit card debt $80,000 due to gambling problems that I have now gotten treatment for. ( our credit cards were used at casinos for cash.....) you would think that credit card companies would not allow this......but I guess it is easy money for them to make)
We have an ARM mortgage that has gone up to over 12%. We also have a fixed rate 2nd mortgage. We make good money.... but are cash poor. We are unable to refinance because of our debt and a credit score that has now dropped about 200 points. We also owe more on our house than it is worth. My question is: do you think that we should do file bankruptcy? OR should we try to stick it our for 5 years and hope that our ARM will not go up too much more. We can barely make our payment to CCCS (which is $2400 a month) plus our 1st and 2nd mortgage. Our program with CCCS will last 5 years. My husband is getting frustrated and thinks that maybe the only way out is bankruptcy. I think that we should try to avoid bankruptcy at all costs. If we sell our house, we will owe over $60,000 to the 2nd mortgage company. I don't know what happens then....... I know this is rather complicated, but any advice you can offer would be so helpful!
We had great credit until this year. We had to enter a debt management program with CCCS. We owe a huge amount of credit card debt $80,000 due to gambling problems that I have now gotten treatment for. ( our credit cards were used at casinos for cash.....) you would think that credit card companies would not allow this......but I guess it is easy money for them to make)
We have an ARM mortgage that has gone up to over 12%. We also have a fixed rate 2nd mortgage. We make good money.... but are cash poor. We are unable to refinance because of our debt and a credit score that has now dropped about 200 points. We also owe more on our house than it is worth. My question is: do you think that we should do file bankruptcy? OR should we try to stick it our for 5 years and hope that our ARM will not go up too much more. We can barely make our payment to CCCS (which is $2400 a month) plus our 1st and 2nd mortgage. Our program with CCCS will last 5 years. My husband is getting frustrated and thinks that maybe the only way out is bankruptcy. I think that we should try to avoid bankruptcy at all costs. If we sell our house, we will owe over $60,000 to the 2nd mortgage company. I don't know what happens then....... I know this is rather complicated, but any advice you can offer would be so helpful!
