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Completely Overwhelmed, I don't know what to do

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Hello, I am new here. I feel completely overwhelmed by my situation. My husband and I have about 62,000 in credit card debt, and we also owe 23,000 to lending club and 7,800 to One Main in personal loans.


We were current on all of these loans and cards until about 3 months ago but it just about killed us. We were only able to pay the minimums by doing a significant amount of figuring out how we could pay this card and use the available credit freed up to pay this bill, etc. It took hours of planning per month. My husband is a compulsive gambler and after he spent the majority at the casino a few times in a row we could no longer pull off this charade and now we haven't paid any of our creditors in about 3 months. We both have regular paychecks and are terrified we will be sued and our wages garnished (we're in WA state).


We talked to Money Management International (before we were late) but they said they couldn't work with Lending Club (that lending club won't), so we'd still have to pay them on our own (a significant portion of our minimum payments at $800+ per month, and a lot of our other cards were at 0% interest promo rates so they wouldn't include those either. So basically having to make those minimums plus the $1400 MMI would require wasn't possible so we didn't sign up for that DMP.


So since my husband spent the money those months and we couldn't pay we haven't been able to get back on track and most of the cards have been shut down already and the others shut off our credit limits when we were late with any so we can't play the "pay the card & then spend the available credit on a bill" game anymore. The surprising thing is we don't have ANY money to make any sort of payments at all. Yes I have budgeted the heck out of our budget and we not only don't have the $1800 we used to pay in minimums I can't find any money to get any cards caught up at all.


We spoke to a bankruptcy attorney and there are 2 problems. He said we can lose the bankruptcy if gambling is a factor and also we have too much equity in our house to qualify. I would like to sell our house to pay the debts, but then I don't know where we would live, housing (even rent) is very expensive and we won't qualify for another loan with our scores having gone to the 400s since we stopped paying people. Also our house needs significant repairs to be able to sell it for a profit. 


I am just feeling like there is no way out. Does anyone have any suggestions?  My husband says he'll be fired from his job if he takes a second job and I am looking for a second job but I don't really feel like my family can handle that either, I have a hard enough time with the job I'm already working with my home responsibilities and taking care of my kids, etc. How long does it usually take credit card companies to sue? Does anyone have any advice? 

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I would seek the advice of an aggressive divorce attorney.  This isn't going to change.

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Why would he be fired if he took a second job?  Is he subject to some sort of a no-compete or is the current job one that is an on-call and thus has a need for 24/7 availability? 


The red flags have been present for a while.  This is a good example of the robbing Peter to pay Paul situation...paying a card only to put some other bill payment ON that card is a shell game that never had a hope in hell of allowing you to escape the debt burden.


Most DMP groups are NOT operating in the consumer's best interest.  They tend instead to make a bad situation FAR worse and they typically offer no assistance once the litigation commences. 


With respect to the gambling being a problem with the BK possibilities, were there cash advances taken for the purposes of funding the gambling?  If not, then the BK court would not be aware of the underlying background unless some of the outstanding debt is markers to a casino...and if there are unpaid markers, there are far greater problems given that the non-payment of a marker is actually a felony in many casino jurisdictions. 


All in all, however, CV may have given the best advice if the gambling is an issue that won't be going away...if he cannot put that in check, then you will NEVER get ahead of the debt problem...and where that is the case, it becomes time to cut bait and move on. 

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