Hello, this is my first ever post on here and we've been struggling very badly with our debt, roughly 40k in debt. The debt is in all credit cards, I am currently retired getting a fixed income of 389 a month and my wife makes 2,060 a month and she gets paid bi weekly. We live in section 8 or section 42 housing not really entirely sure but know that our income is low which allows us to live here. We also do not own any assets.
Rent is $844
Car insurance $1020 for 6 months ( $200 every month)
Cell phone bill $390
Mostly all debt is about to be charged off and not sure what to do, feeling like i'm drowning and can't find a way to work everything out.
So the final question is do I just try to chapter 7 joint BK with my wife or what other options are there?
Hi @tinderbox9, I've pulled your thread out of the spam quarantine and removed your duplicate.
I don't think you'll have the problem again, but it you do simply follow the instructions on the screen to have it restored (reposting only makes it worse).
It seems like with amount of your income, even if you could reduce some bills ( cell, cable etc) that is alot of debt and not enough money to repay it. Do you rent or have a mortgage?
You and your wife can talk to a bankruptcy attorney most offer free consults, that way you can see where you stand.
You pay nearly $600/month between internet and cell phones alone. Bankruptcy or not, this is really high.
I'd really carefully evaluate what decisions were made to get you up to $40k in debt and why some of your bills are so high (insurance could also be cheaper). I say this not to be mean, but because if excessive spending doesn't change, you could become one of the statistics -- those who file bankruptcy only to need to file again a few years later.
With that in mind, a debt management plan is one alternative. In this scenario you'll hand over your credit card payments to a credit counseling agency, who will negotiate a lower rate/payment for these debts. I'd expect to pay about $775/month on a $40k balance. It is unlikely you will be able to reduce your expenses to be able to afford this.
If you live in a community property state (e.g. California) you will want to file together if either of you obtained dischargable debts after marriage.
Start by talking to some lawyers in your area. At least 3 of them.
Thank you for the reply! We live in section 8 housing and currently don't own any property and yes I very understand the prices of those bills but sadly we are stuck in a bill with them for few more years and can't pay down everything all at once since our income is so low. I also did come in contact with a debt management plan and was told that debt management plan most likely wasn't going to be the option but instead they directed me to a debt settlement plan which I don't know if it's worth the 5 years to rebuild due to the income we're currently living with.
I would not go with a debt settlement company!!! If you are gonna go that route you need to talk to a BK attorney.