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Considering Bankruptcy, Looking for Input

Frequent Contributor

Considering Bankruptcy, Looking for Input

This post could get really long, but I'll do the best I can.

 

I got separated in 4/15.  Since then, through internal job changes due to force reduction (railroad), finalizing the divorce, paying child support, maintaining a house on my own, and stupidity, I've accumulated over $30k in CC debt.  I have a car payment of over $600 a month (which I would do everything I could to keep).  I haven't missed a single payment on any loan, card, or other obligatioin.  I haven't even been late.  But it's all starting to feel like waayyyy too much to handle.  Actually, through the most recent reduction in pay, I'm 99% sure I can't make it all work.  I'll give a few details.  

Net Income - $2,700/month (way down from just a couple of years ago)

Child support - $800/month

Car payment - $605

Rent - $400

Credit Cards - Pretty much the rest

 

Any input is appreciated.  I've looked into debt consolodation, and I haven't found any viable options.  

EQ - 677   TU - 688   EX - 687

Thanks. 

Message 1 of 5
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New Member

Re: Considering Bankruptcy, Looking for Input

Hi...The car loan pops out as very high in your present position...can you do anything with that to get out of it, reduce it?...I am sure you are doing whatever you can for more income  ... I really would love to see you do something about the car payment. 

Message 2 of 5
Moderator

Re: Considering Bankruptcy, Looking for Input


BrettNS wrote:

This post could get really long, but I'll do the best I can.

 

I got separated in 4/15.  Since then, through internal job changes due to force reduction (railroad), finalizing the divorce, paying child support, maintaining a house on my own, and stupidity, I've accumulated over $30k in CC debt.  I have a car payment of over $600 a month (which I would do everything I could to keep).  I haven't missed a single payment on any loan, card, or other obligatioin.  I haven't even been late.  But it's all starting to feel like waayyyy too much to handle.  Actually, through the most recent reduction in pay, I'm 99% sure I can't make it all work.  I'll give a few details.  

Net Income - $2,700/month (way down from just a couple of years ago)

Child support - $800/month

Car payment - $605

Rent - $400

Credit Cards - Pretty much the rest

 

Any input is appreciated.  I've looked into debt consolodation, and I haven't found any viable options.  

EQ - 677   TU - 688   EX - 687

Thanks. 


Looking at the above, can you change the deductions with HR so you don't get so much taken out for taxes (assuming that most of it is for tax deductions)?  I know some people like to have a refund at tax time, but when you get in your situation, it is really better to have less at tax time and more in each check.  The HR department can help you with those calculations so you are taking out only what you need to pay to Uncle Sam and not more.

 

I also agree with the prior poster.  Sell your vehicle. If you sell it, you won't have that huge payment. Do you need a vehicle or is this a want?

Message 3 of 5
Frequent Contributor

Re: Considering Bankruptcy, Looking for Input

I would also say the car seems high. A $600 car payment is more than what you're currently paying for rent. I would see if you can get out of it, possibly take on a different car with a lower payment. I would also suggest talking with a debt reduction company, NOT a debt settlement company and see if they might be able to help you with the monthly payments and APR on the CCs. I've used in the past Debt Reduction Services. They are very inexpensive to use, friendly and knowledgeable. They also DO what they say they are going to do, unlike other places (Money Management International) which seem to just take money from people and never do anything, miss payments, and never contact creditors. You might not have to file BK, but just live with a little discomfort for a year or so and resolve your debts through debt management. It does leave a little mark on your credit as the accounts will report as "being paid through a debt manamagement program" however it's a much better scenario than saying BK all over. If you DO need to file BK, I would walk away from the car and start over. A car is a thing, and really just get something you need not want to own.

Ch7 BK filed 7/5/16, DC 10/12/16
Message 4 of 5
New Member

Re: Considering Bankruptcy, Looking for Input

Bankruptcy could cost youi as much or more than debt settlement. Try modifying your child support if you can and downsize the auto.  I would consult with a reputable debt consolidation firms or a BK attorney. You have to start today. 

Message 5 of 5