First, I am not an attorney (of any type). I just did a quick search for the Bk exemptions in Montana, they are here: http://www.legalconsumer.com/bankruptcy/bankruptcy-law.php?ST=MT
Your home seems like it is at a very good rate and you have equity, which is good for you (in your state, not so much in other states).
Verify with an attorney.
You could:
1) Keep your home and work on the other unsecured debt through another method other than Bk. Your payment is very, very reasonable IMO but I don't know your market.
2) Or Sell your home rather than file Bk and pay off the debt you have now - you would need to check with a good Realtor in your area to get *today's* value for a quick sale to see if it is worth it. I am not suggesting this avenue, only mentioning it. The good part about selling is you preserve your VA credit and once you get back on your feet you can get another VA loan. There are a lot of variables including what you would have to pay for rent if you went this route.
3) Or File Bk but keep making your home payment on time every time, even during the pendancy of the Bk.
Here are some ideas for you to tackle your current debt load without filing Bk: Check these out before your appointment. You can not just file on cc's without including your home and your auto. You can reaffirm your home and auto, but that is not normally recommended. You can also pay and stay for your home and surrender the auto.
- Check your exemptions on your taxes - do you get a big refund every year? If so, change your exemptions so you don't get a big refund but your checks are larger. Don't make it so much that you owe the IRS, but you can talk with HR and they can give you the "right" number of exemptions so you pay what you owe and not more. This will help you with monthly cash flow. For example if your refund is $6k per year and you adjust your exemptions, this gives you another $500/month.
- Sell the car. You need a cash vehicle or public transportation if available. You don't need a $433/month payment. That will free up $433/month
- Once you get a 'beater' you can reduce your auto insurance. If you use public transportation, you don't need to spend the $112/month
- Go to daveramsey.com and check out their budgeting section, you have got to see where the money is going: https://www.daveramsey.com/budgeting/how-to-budget/
- Can your wife increase her income? $1300/month seems very low especially if none of it is contributing to the household except for childcare. You will need to analyse this aspect of your household expenses
- Personally I would check out whychat hipaa method for the medical debt
I think you can work this out based on your posted debt and income. You might need to stop paying some of the unsecured creditors (like credit one bank, merrick, fingerhut) but save the other good ones. This is a tough call. Those starter cards are pretty aggressive. Def call all of them and work out a hardship arrangement. They usually want you to stop charging and will drop the rate to very low rates (like 6%) but they usually want you to allow them to draft out of your bank account, so set up another account so it doesn't mess up your main checking account. Sometimes they will only allow you to do this for 6 months and then you call in again and renew for another six months. Each cc co has a different process. If you do it this way you don't have to mess with your home at all.
You have resources. The car is killing you $433+112 for ins is $545/month which is huge if you are bringing in $5k/month.
