It has been a long journey to this point. As an update, we found a great rental home in a good school district with a reasonable budget and plenty of space for our large family to be comfortable. We are no longer a group of 8 cramped in 900sf in the inner city!
With this breathing room, we have decided to move forward filing a chapter 7 bankruptcy to get a fresh start. We have about $222k in debt ($124k student loans and $98k in defaulted credit cards, auto loans and medical bills).
Our low income, combined with large family and living expenses qualified for free legal services and we submitted all the documents to the lawyer this morning. We will be filing a Chapter 7 as a married couple. We should be filed by May 15 and I can only imagine the relief we will feel when this is over.
Thank you for all the support and comments in the past. I will use this as my rebuilding thread from now on.
Good to hear you've improved your housing situation. I filed for chapter 7 in February and am now at the end just waiting for discharge. It was a huge relief once it was filed. Now I'll be 72k lighter and can have a better future.
Congrats. Although most debtors won't be able to discharge (wipe out) student loan debt in Chapter 7 or Chapter 13 bankruptcy. However, if you can prove that repaying your student loans would cause an undue hardship to you, you can get rid of your student loans in bankruptcy. It doesnt happen often. Good Luck!
@FireMedic1 if they manage to get student loans discharged though you will no longer be eligble to apply for them right?
Dont know. I wonder if debts DC'ed like homes, cars, and thousands in credit are wiped out. You can still get another home post BK in 2 yrs with FHA. I guess you could get another student loan. Good queston.
Our student loans will likely not be discharged, but it is a manageable burden with income-based repayment.
Thats good. Least the others will go poof. Good Luck!
Back again with an update! I just hung up from a telephone conference with the lawyer.
We reviewed some things on the schedules and he will be making the corrections. We are dropping off a check for the filing fee and signing the paperwork Monday.
I am so relieved!
Good luck to you all. Once its started, such a wonderful feeling. Wait until discharge. I was so excited, I printed off the PACER discharge and now its framed up on my wall. Nice job on a bigger place. I lived in about the same with 4 people and thought it was cramped.