Discover lowered my limit——UPDATE

[CreditInspired]

OP, your situation, as you know, is dire at this point in time. I read a few posts on here a couple of weeks ago from others in a similar situation. What stuck out was "when to make the decision to file for BK." Of course, it should be a last result; but it shouldn't take months or even a year continuing to struggle under unbearable conditions if you don't see a light at the end of the tunnel. As others have said, it's only a matter of time where you won't be able to put rent on a CC. Also, because of the minimum payments on the interest-bearing cards, your balances are continuously increasing. Yes, you're making all your payments now but on 2-3 of the CCs, the balances are larger than the CL. And, in your list of recurring bills, you didn't list groceries, diapers, gas, etc, which you are probably charging. I notice where you talk about bringing in additional income -- a PT job; but, will you have to add another expense -- daycare? I'm just saying please know when to decide either you'll have to file BK, you have to give up your apt, or you have to ask for help maybe from your relatives or a girlfriend. You're in a tough spot. Good luck on whatever you decide.

[icyhot]

Yes I've been seriously considering BK but not only am I unfamiliar with the requirements, I'm having a hard time justifying the end results. Would I be relieved of all my debts and payments? Is it worth me likely not being able to get an apartment, house, car loan, for 7 years? I just don't know if it's worth it

[medicgrrl]

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@icyhot wrote:
Yes I've been seriously considering BK but not only am I unfamiliar with the requirements, I'm having a hard time justifying the end results. Would I be relieved of all my debts and payments? Is it worth me likely not being able to get an apartment, house, car loan, for 7 years? I just don't know if it's worth it

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Go over to the bankruptcy and rebuilding your credit forums.  You'll learn a lot.  There are 2 types of bankruptcy.  Chapter 7 discharges you from all of your debts and it's possible to keep the car and loan.  Chapter 13 is a restructing and you make payments.  There is life after bankruptcy.  I purchased a car lliterally days after my discharge from Chapter 13 at a rate of 6.15%.  I also refinanced it 6 months later with LGFCU, they also gave me a credit card.  There are different rules about when you can get credit cards from various lenders.  Some go by when you filed, others by when you are discharged.  Read the threads regarding Bk friendly credit cards and the other is about how to get back to a credit score of 700 within 2 years of Ch 7 bankruptcy.

I don't know where you live, and you can PM your location if you would like, but most Bk attorneys will give you a free consulation.

[icyhot]

I only have one balance that's larger than the CL and that's the closed BOFA card. Groceries are covered by assistance and I pay for gas directly from my Uber earnings. I won't have to worry about childcare because I'm receiving help in that regard. My issue with BK, and this may be trivial, is that I don't want to give up ALL my cards and burn so many lenders. I still want to keep my Amex and Chase cards an not include them, but they'd probably see the BK and take action on me anyway

[medicgrrl]

You won't be able to keep the cards, but if you have any that don't have balances, close them before you file...if you go that route.   This will keep them from being included in bankruptcy.  If they have a balance, then they must be included.

[icyhot]

So if I pay them off and don't include them I will still lose them?

[medicgrrl]

Yes, you wouldn't be able to have any open accounts during the filing process.  But if they have a $0 balance and are closed and not included in the bankruptcy, then 1) it leaves a good account on your credit report 2) it leaves the door open to future cards with that lender.  If they are open, even with a $0 balance, they will probably be listed on the bankruptcy and then be listed on your credit report as "included in bankruptcy"

I would really look at how long it will take you to pay off this debt, how long you can manage these payments and at least just get a free consultation with an attorney so you can look at all of your options and figure out how to proceed with your debt.

[Anonymous]

Usually there is a 90 day look back policy on bills paid just before bk or large charges made just before bk So the claw back rules may apply if paid off just before bk.  I wonder if you and baby could move in with your parents. Or perhaps you, baby and other baby parent all move into together and get a very small place to save on rent or even baby's other set of grandparents.  I despise my youngest son's wife but I will do anything for my grandchild and I am sure other set of baby's gp would help.   

[Skymogul]

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@icyhot wrote:
Thanks for the suggestion but I honestly don't think it's worth it to negatively impact my credit. While utilization is huge I have no collections, charge offs, public records, or a single late payment.

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I can't stress how precarious your situation is. You're already here talking about a Discover CLD. It looks like you have a closed BofA with a high balance - involuntary close there (BofA spooks easily and often first)? You have about $9,400 of available credit by my calculations. That's less than a year of your rent alone, but adding all your other expenses I'd reckon you've got less than 6 months.  Any major CLDs or invountary closures are going to push you over the edge fast. You have significant balances and line with Capital One, and they have been doing major line decreases lately here. As has Citi who you also have significant lines and balances with.

While you don't have any late payments, you are not truly making your payments. You are charging everything so that you can pay your cards - in effect, you are charging your cards to pay your cards.

It's important to act before you slip and descend into judgments and garnishments. You have a few options now, but time is running out fast.

[tiffjtiffj]

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@icyhot wrote:
Thanks for the suggestion but I honestly don't think it's worth it to negatively impact my credit. While utilization is huge I have no collections, charge offs, public records, or a single late payment.

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I wish you the best in getting out from all of this, OP. What are your FICO scores currently, if you want to reveal?