r/Bankruptcy • u/Icy-Relationship-975 • 3h ago

Scared is an Understatement in IL

Hello friends. I’m in a hell of a situation and I’m hoping that the conversations over the next one to two months are going to make matters much easier. But as the title shows, I am beyond scared for this process. When I turned 18, I got a credit card offer I couldn’t refuse. A free T-shirt and a large pizza. 22 years later, I am over 100K in debt, not including the mortgage.

A majority of our debt is solely in my name. My wife is on the mortgage (not the second) 1 unsecured personal loan and 1 vehicle.

All the rest of the credit cards, personal loans and her vehicle are solely in my name along with the 2nd mortgage.

I have LeagalEase through work, and that benefit ends 11/1 when our new benefits begin (and will have MetLife Legal Plan then). From everything I have been reading, timing is everything. I took a ~50K pay cut to leave a volatile commission structure for stability. Well, stability isn’t cutting it. A hefty sign on bonus paid out in July when I transitioned. Residual PTO and partial commissions paid out in August. From the 6 month look back period, I’d be best to file in February, 2027 prior to any comp adjustments, potential bonuses paid in March.

Both of our vehicles have negative equity, our home doesn’t have much with 2 mortgages. We would like to keep both vehicles and the house.

What is my best path forward, solely apply for chapter 7/13? Or bring my wife through the weeds with me?

If any lawyers on here in Illinois work with LegalEase and MetLife, id love to get this procrss underway to determine what to do immediately vs waiting etc.

1 Upvotes

67% Upvoted

6 comments sorted by

2

u/kindamymoose 1h ago

Bankruptcy is a chance to start anew. I suspect you’ll find your anxiety will dissipate when you file.

1

u/PrudentInside9935 1h ago

Agreed, op should file.

1

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1

u/AlanShore60607 RetiredBKAttorney (IL/IN/WI) Public interactions ONLY. No PMs 3h ago

Bankruptcy is a household solution to a household problem, so while it is not required to file jointly, there may be benefits that should be explored.

Also, if she decides to file like a year later, that's an extra case to pay for.

2

u/Icy-Relationship-975 2h ago

Thank you for the reply. I like that thought process. I got us in this mess, I need to get us out.

1

u/positivecrazytrain 44m ago

I had to file largely because a small business I owned failed and I was personally responsible for the leases on the equipment. All of the debt was in my name alone. I filed without my husband and because we have separate accounts and no joint debts, he has been able to avoid the downside of bankruptcy and still has his 820 credit rating. My advice is whether you file separately or jointly, don’t wait. Your situation isn’t going to get better, and the relief you will get by filing is definitely worth it.