Rock Bottom

[Running]

I've hit rock bottom in my life. My credit score is a 380. It was a 680 last year. My husband and I have been struggling very bad over the last year. We lost his business and house. I lost my high paying job and making minimum payments became impossible at times resulting in repeated dings to my credit. I've even thought about selling my wedding ring to pay for things. I have $10,000 in unsecured debt and 80k in student loans that are in forebearance right now. I don't know what to do. Should I file for bankruptcy? I understand that after bankruptcy is discharged I may be able to get a secured credit card and start repairing my credit. I just can't see the light right now and I'm scared we will never be able to buy a home again or own another vehicle. I'm just feeling so horrible.

[Shogun]

Sorry you are going through such a rough time.  BK can be good some times, but you have to see if it's good for you.  You say you have $10K in unsecured debt and then the SLs.  If they are federal, a BK doesn't discharge them.  So if that's the case, is $10K worth it to you in your situation?

[CreditHealthy]

Good evening, I know it may seem as if you have hit rock bottom right now but, please believe me when I say, that all of us on the forum particularly in the re build section have all seen what looks like "ROCK BOTTOM". You will find a way to weather this storm, and I wish you all the courage and strength to do it!!

[triedtogetacardandcouldnt]

I think 10k is doable. I had 25k in debt and was making minimum wage when I filed BK, and it was definitely the RIGHT decision. You might not be at that point yet. My accounts were all old and charged off, and I had a lawsuit on my hands. You may be able to salvage your situation and keep making minimum payments. But you have to get current. That's the important thing. Call your creditors, explain your situation and try to come up with something.

As for the student loans, they really aren't dischargeable in BK. I would advise getting under the IBR program for people dealing with financial hardship. You may qualify for a payment of $0 a month.

I am confident you can get this taken care of. I know it's tough, but you can get back on the path to rebuilding your financial life and your credit. But you have to make those first steps.

[spike69]

I don't have a lot to add from what others have said here other than to say- welcome to the board. There is a lot of great advice here. I would also advise that you call any creditors that have not CO'd your debt and see if there is a payment arrangement they are willing to make with you to get the 10k paid down w/o incuring a lot of additional debt through high interest rates and late fees? Finally, I agree with others on the student loans, you may qualify for a $0 payment based on your current situation.

Best to you

[DaveSignal]

I think the first step is to get a job... pretty much any job will do.  I don't think $10k is a significant amount of debt.  I certainly wouldn't file BK over it.  Talk to your creditors and work out payment plans.