Wondering if I should file Chapter 7 BK

[Momof5]

+1 on the rehab

Filing BK7 would not be in your cards d/t homeownership.  With you and your wife working, it is unlikely that you would pass the means test for either BK7 or BK13. 

Your best bet after setting up the rehab is to find additional income (OT or a second job) or reduce current expenses.  Recheck cell bill and see if that can be reduced.  Reduce your cable package or eliminate that all together.  Reduce entertainment expenses.  Look at your shopping behaviours.  Are you taking advantage of sales, coupons or generic items?

[CGame]

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@TRC_WA wrote:

Based on what you've said I would say filing BK would be a stupid decision.

Research the credit rebuilding forums here on actions you can take regarding the collections/garnishments.

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Thanks TRC, I didnt think it was wise, but I wanted to ask some pros here! Agreed!

[CGame]

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@Shogun wrote:

OP.. I moved here because I agreed with the other posters.  Let them take a stab at it here.

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Thanks for the move Shogun!

[CGame]

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@Anonymous wrote:

Without knowing the totals debt as well as total income its a little difficult to say. $250 a month is not a whole lot for a garnishment. Last year when I got hit it was 25% of my gross after tax pay - that amounted to about $700 a month. You're just showing whats under a small corner of the tarp, whereas we really need to see it all to give any useful advice.

Big question is, how long before some of these are paid off?

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Thanks for responding Norman

I did some calculations last night, its actually 15% of my gross, which is about $600 and some change per month. Initially I thought it was $250 from what the person told me in the letter I got at the end of March, but looking at the stub and seeing what it was, thats the amount. I work out of town, so I don't get the chance to see the stubs as often. Salary is $45K, loan amount is $6100. The 3 credit card debts will be paid off around the middle of next year, closer to around July-August 2016. 

[CGame]

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@Anonymous wrote:

Rehab your SL.  After five voluntary payments (since you're already being garnished your payment will be very small) the garnishment will be lifted.  Then select graduated payment.  My SL is $30k and my payment is $105 and will graduate up to just under $400 over the life of the loan.  I plan to have it paid off far before that.  Dude, your finances aren't even close to being bad enought for BK.  You could get a part time job and pay everything off except for the SL in less than a year.

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Thanks Rising_Scores. I was unaware that you could still make voluntary/rehab payments once you were being garnished. I'm going to try that and go over to the SL forum and read some of that information as well. Thanks. I didnt think I had enough debt for a BK, but I wanted to make sure. 

[CGame]

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@Momof5 wrote:

+1 on the rehab

Filing BK7 would not be in your cards d/t homeownership.  With you and your wife working, it is unlikely that you would pass the means test for either BK7 or BK13. 

Your best bet after setting up the rehab is to find additional income (OT or a second job) or reduce current expenses.  Recheck cell bill and see if that can be reduced.  Reduce your cable package or eliminate that all together.  Reduce entertainment expenses.  Look at your shopping behaviours.  Are you taking advantage of sales, coupons or generic items?

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Thanks for the reply Momof5! I was looking online last night for the means test for my state (TX) and you are correct, I wouldnt pass with her salary. I'm going to try rehabbing. I had NO idea you could do that once in garnishment. Thanks!