Up until now, I too have been a “lurker” on this blog. But after reading this post, I feel compelled to speak up.

What your husband is telling you about filing for bankruptcy (BK) couldn’t be further from the truth. I filed for a chapter 7-BK in Jan 2012, it was discharged in May 2012. In June of 2012, I received my first opportunity to rebuild my credit with an unsecured MasterCard from Capital One. I rented a great apartment downtown Chicago (expensive area) in Feb. 2012 (before my BK was discharged) and then a great 2 bedroom condo just outside of downtown after that. In June 2014, I began looking to purchase a home. My broker was willing to work with me because the BK had been discharged for at least 2 yrs by that time.

In April of 2015, I found the condo of my dreams – a one bedroom loft in the South Loop area of Chicago (for those who don’t know – this area is incredibly pricey and for many, hard to qualify for a mortgage) because I was able to re-establish my credit. Now I have 4 credit cards – and keep the balances pretty low on them (if they have a balance at all) and have become a LOT more disciplined as a result of filing for that BK. It was the best decision I’ve ever made – I was able to stop a judgment to garnish my wages, and get rid of about $30K worth of debt. My atty advised a BK-7 because I didn’t own a home and didn’t have many assets –sort of like what your situation appears to be.

The misconception about BK is that your life will be ruined afterwards, but that’s just not true. You may find that it may be one of the best decisions you could make in the long run. Among the debts that you can get rid of is that hefty AMEX debt and many of your others (except your rent and that school loan!). I’d consult with a BK atty first to find out the full ramifications of filing for BK as opposed to just relying on the word of your hubby.

If credit was applied for in his name while you were married, you can be held responsible for it even if you didn’t sign the application. Better check on this but that was the law a couple of years ago. The only difference is credit established before the marriage.