Navigating Financial Turmoil: Our Journey with a $100k Charged-Off Personal Loan
In the midst of a global pandemic and economic uncertainty, my husband unfortunately made some financial decisions that have drastically impacted our lives. In a bid to capitalize on day trading during COVID-19, he accumulated significant debt through credit cards and personal loans, all without my knowledge. Initially, he managed to keep this hidden by channeling most of his paycheck into our joint account while using his discretionary funds for minimum payments.
After realizing the gravity of the situation, we contemplated filing for Chapter 13 bankruptcy. However, we opted for a different route: selling our home, relocating to Mexico, and using the home’s equity to negotiate and settle our debts. Fortunately, we successfully resolved three out of the four creditor obligations through this method, but a personal loan exceeding $100,000 proved more challenging. Despite numerous attempts at negotiation post-default, the bank, BHG, decided to charge it off.
As we stand now, we face uncertainty about potential legal action or remaining negotiation opportunities. With my husband currently unemployed, paying off the loan would deplete our savings entirely. His credit score has suffered significantly, and aside from a fully paid-off vehicle, we own no assets. As renters in Mexico with a legal address in Texas, we’re in a precarious position. I maintain an excellent credit score, though as a stay-at-home mom without income, I’m grappling with trust issues stemming from this ordeal.
What’s our next step? We’re seeking guidance on potential legal consequences and further negotiation strategies to effectively manage this financial crisis. Understanding the possible ramifications and identifying proactive measures are crucial for us to stay afloat. Together, we continue to work on repairing our relationship and hope to emerge from this challenge stronger and more unified.
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