topic Re: Trying to avoid BK, but balances keep growing in Bankruptcy

Trying to avoid BK, but balances keep growing

niceassets — Wed, 18 Jun 2025 15:46:20 GMT

I've always had a 720+ score until a year ago, I lost my main client (95% of my income) and for the last year I've been living off of savings (all gone now) and credit cards.

I really didn't expect to be out of work for this long and while I hope I land something soon... hope doesn't pay the bills.

Needless to say, I'm 35k+ in debt and with interest rates 14 - 22%+ on balances. It seems futile to even continue making minimum payments. I haven't fallen behind yet, but I'm about to and I feel like I should just let it go and wait to BK. At the same time, that feels so irresponsible to me, to not pay my debts, not to mention the 7 years my credit is going to suffer.

I know the credit counesling services can negotiate lower payoff amounts, but that still tanks your credit too. Might as well do a BK and just get them all to $0. Or am I missing or overlooking anything important here? Any and all advice appreciated.

Re: Trying to avoid BK, but balances keep growing

GZG — Wed, 18 Jun 2025 16:00:55 GMT

@niceassets wrote:
I've always had a 720+ score until a year ago, I lost my main client (95% of my income) and for the last year I've been living off of savings (all gone now) and credit cards.

I really didn't expect to be out of work for this long and while I hope I land something soon... hope doesn't pay the bills.

Needless to say, I'm 35k+ in debt and with interest rates 14 - 22%+ on balances. It seems futile to even continue making minimum payments. I haven't fallen behind yet, but I'm about to and I feel like I should just let it go and wait to BK. At the same time, that feels so irresponsible to me, to not pay my debts, not to mention the 7 years my credit is going to suffer.

I know the credit counesling services can negotiate lower payoff amounts, but that still tanks your credit too. Might as well do a BK and just get them all to $0. Or am I missing or overlooking anything important here? Any and all advice appreciated.

sanity check your math with a, typically free, consultation appointment with a bk attorney

they will tell you if you can do ch7 or if you'll have to do ch13 which could change what you decide to do

get a job. $15/hour at mcdonalds/walmart + doordash/uber eats at night is way more money than the $0? you're making now

from a credit perspective you are treated much better out of a bk than out of a mass-charge off situation, bk7 is 10 years instead of the 7 years for charge offs.

you can also contact your creditors and ask for hardship programs and see if they have anything for you

keep up on your payments as long as you can and follow your lawyer's advice if you plan to go the bk route

Re: Trying to avoid BK, but balances keep growing

niceassets — Wed, 18 Jun 2025 16:07:11 GMT

Appreciate the advice and yes that's the next step after consulting this board is to visit a bk attorney to sanity check the math, absolutely.

"keep up on your payments as long as you can" totally! and yes I'm going to continue on that path until I have a plan in place. You're right.

And trust me, looking for work non-stop, but I was a C-Suite exec making over $180k/year

$15/hour just isn't going to cut it. With a Masters degree and 25+ years executive work experience, working fast food isn't a good fit.

I live in Southern California... my rent alone is $4,195/mo... and that's not a 'flex' it's a sad reality lol

Re: Trying to avoid BK, but balances keep growing

sccredit — Wed, 18 Jun 2025 16:29:48 GMT

Which part of the C Suite? You can DM me if you'd prefer. I am in SoCal and depending on function and industry I may have some contacts for you.

Re: Trying to avoid BK, but balances keep growing

Varsity_Lu — Wed, 18 Jun 2025 18:37:20 GMT

@niceassets wrote:

And trust me, looking for work non-stop, but I was a C-Suite exec making over $180k/year
$15/hour just isn't going to cut it. With a Masters degree and 25+ years executive work experience, working fast food isn't a good fit.

So, filing bankruptcy is a better fit? Sounds like you have a pride issue. Humble yourself and get to work. Seriously. Do whatever it takes. And that also includes moving out of your place if needed.

Re: Trying to avoid BK, but balances keep growing

FicoMike0 — Thu, 19 Jun 2025 01:14:07 GMT

Wow, if your rent is $4000/mo and you have no income, I don't think any bk chapter will solve that problem. You need to get out there and get another $180,000 job. I'm fact, give yourself a raise, go for an even $200,000.

@Varsity_Lu what could you get in central oh10 for that rent? Probably something near the governors mansion.

Re: Trying to avoid BK, but balances keep growing

niceassets — Thu, 19 Jun 2025 20:34:13 GMT

thank you, will do!

Re: Trying to avoid BK, but balances keep growing

niceassets — Fri, 20 Jun 2025 01:11:25 GMT

Your reading comprehension needs a little work doesn't it? The title of the thread is "trying to avoid BK"

I didn't say BK was a better fit... it's a last resort and hence why I'm looking for advice/options INSTEAD of BK.

And no, moving out makes no sense. $4,000/mo is very reasonable (cheap even) for this area.

I'd move out and pay more, not less. What good would that do? None.

Re: Trying to avoid BK, but balances keep growing

Varsity_Lu — Fri, 20 Jun 2025 01:32:35 GMT

@niceassets wrote:
Your reading comprehension needs a little work doesn't it? The title of the thread is "trying to avoid BK"
I didn't say BK was a better fit... it's a last resort and hence why I'm looking for advice/options INSTEAD of BK.

And no, moving out makes no sense. $4,000/mo is very reasonable (cheap even) for this area.
I'd move out and pay more, not less. What good would that do? None.

Look, I'm saying the tough stuff you need to hear that most likely no one in your life is saying. You need to work. I know you want a C-suite job, and anything less will be tough to swallow, but you don't have the luxury to pick and choose right now. Get to work. There are thousands of jobs out there, but you need to be willing to actually do them. That may take some humility.

And moving is absolutely an option. You don't have to stay where you are. Come to the Midwest and live in a $750 apartment. There are plenty. If you are serious about avoiding bankruptcy, you have to make tough changes. Millions of people throughout history have made similar, even more difficult decisions to make ends meet. It isn't (or shouldn't) be out of the question if you are serious about what you wrote in the title of this thread.

Re: Trying to avoid BK, but balances keep growing

FicoMike0 — Fri, 20 Jun 2025 01:40:03 GMT

@niceassets

Good for you, trying to avoid bk.

I will offer, I've never gotten a decent job without moving. The one time I lost my job, I initially had to " go on the road", I took a three month temp job, lived in a motel. After that job, I did end up on the gulf coast, so, it was worth it.

Re: Trying to avoid BK, but balances keep growing

AndrewF — Sat, 09 Aug 2025 03:35:20 GMT

@Varsity_Lu wrote:
@niceassets wrote:

And trust me, looking for work non-stop, but I was a C-Suite exec making over $180k/year
$15/hour just isn't going to cut it. With a Masters degree and 25+ years executive work experience, working fast food isn't a good fit.
So, filing bankruptcy is a better fit? Sounds like you have a pride issue. Humble yourself and get to work. Seriously. Do whatever it takes. And that also includes moving out of your place if needed.

Basically, he'd rather file bankruptcy than work. Bluntly put.

If your college degree has you out of work for an entire year and your only plan is to run your savings down to $0 and get thrown out of your $4,000 apartment and max out all the credit cards and file bankruptcy, then I'm sorry, but that doesn't sound like a good plan.

In an emergency any income beats no income.

My grandfather dug ditches when he was waiting for a job at General Motors. He didn't sit on his butt going "I don't want to dig ditches. Sure I have a mortgage and some kids, but oh well."

I've been reduced to unemployment checks and collecting scrap metal before, and it paid better than sitting on my butt hoping better days would come. They extended unemployment because we were in a recession, but it still only replaces about half your income. That hurts.

Yeah you put in applications, and follow up, but you have to keep the rent and the light bill paid, and put food on the table.