In over my head and its my fault, Ch. 7 or Ch. 13?

[Anonymous]

As I sit here a type this, I have my stomach in knots.  I never thought I would be thinking of filing for bankruptcy at the age 34.  I originally started with a couple CC’s when I was in my mid 20’s and lived on my own and made some stupid financial moves.  I then compounded my situation by taking put personal loans to pay off the CC’s then I basically lived on the cards because my pay went to rent and paying the CC’s and loans.  It has gotten to the point where it keeps my up at night and I come home and I’m irritable around my fiancée.  I have broken out everything below.

Credit Cards
Capital One	$3,314.34	$137.00
Pentagon Federal Credit Union	$4,711.30	$187.00
Navy Federal Credit Union	$18,456.40	$369.00
Navy Federal Credit Union	$14,477.88	$525.00
Paypal	$7,080.00	$128.00
Loans
Navy Federal Credit Union	$7,794.90	$255.11
Navy Federal Credit Union	$9,454.11	$253.53
Pentagon Federal Credit Union	$16,166.55	$485.12
Pentagon Federal Credit Union	$8,000.00	$238.00
Freedom Financial	$7,286.00	$261.00
Lending Club	$9,526.00	$282.00
Prosper	$11,902.00	$432.00
Household
Rent		$1,754.00
Gas		$60.00
Electric		$40.00
Water		$35.00
Car Insurance		$123.85
Verizon Cell Phone		$100.00
Verizon Fios(includes internet)		$90.00
Totals	$118,169.48	$5,755.61
Salary	$114,000.00
Monthly Pay		$4,548.98

My question now is do I even qualify for chapter 7?  I don’t own any property and my car is paid off and only worth $5500 according to NADA.  My only concern is my finacee engagement ring and if that is going to taken.

Once I get DC I plan to rebuild and be more aware of how I use credit and not be reckless.  Thanks for any advice as I have been sick to my stomach just thinking about this.

[despritfreya]

With an income of $114k per year I tend to doubt you will qualify for a Chapter 7.  Being over median income means a 5 year Chapter 13.  No way for anyone on the Internet to determine what your monthly Plan payment would be.  Best thing to do is to meet with several attnys to go over your options.  Second best thing to do is to chill out and stop blaming yourself.  Things happen.  Bk is not the end of the world but rather a way to open and pass through a door into a new  and cleaned up world.

Des.

[Anonymous]

Your monthly gross income ($9,500.00) more than covers your monthly expenses, or am I looking at your chart wrong?

[Mjhall85]

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@Anonymous wrote:

Your monthly gross income ($9,500.00) more than covers your monthly expenses, or am I looking at your chart wrong?

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I thought the same thing but maybe the salary it is including the fiance money ? If your montly  income is only 4500 depending on your state you may meet the means test for chapter 7 if it is 114k you can pay off these debts in a timely manner.

[Anonymous]

My salary is 114k, but between taxes and retirement my monthly take home is $4500.

[Mjhall85]

Yeah taxes suck especially when single you get nailed pretty good.It's great you are saving for retirement early on but I would consult with an attorney  more than likely you will be in a chapter 13 may have to put retirement savings on hold to pay off some debt. I would contact a few different attorneys and go from there. From what you take home and to what needs to be paid out you are in the hole just over 1k a month and you'll continue to be in the red until something changes whether its salary increase a bonus etc to help lessen the burden. Bankruptcy is never an easy choice I debated about it for over a year but I just prolonged the inevitable but now I am near the end of my BK.

[weezy615]

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@Mjhall85 wrote:

Yeah taxes suck especially when single you get nailed pretty good.It's great you are saving for retirement early on but I would consult with an attorney  more than likely you will be in a chapter 13 may have to put retirement savings on hold to pay off some debt. I would contact a few different attorneys and go from there. From what you take home and to what needs to be paid out you are in the hole just over 1k a month and you'll continue to be in the red until something changes whether its salary increase a bonus etc to help lessen the burden. Bankruptcy is never an easy choice I debated about it for over a year but I just prolonged the inevitable but now I am near the end of my BK.

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I dissagree with you... I just filed and was in about the same exact situation as this guy, its kind of eerie actually. Im 35 years old and had about 75k in unsecured debt making 60k a year. I made too much but my lawyer said i passed the means test. It looks like he clearly can't afford all his montly bills and when you add food, water, rent, utility, gas, car maintence , clothes etc...he will have more bills to pay than what he makes. I think he can qualify for chapter 7.. 

[Mjhall85]

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@weezy615 wrote:

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@Mjhall85 wrote:

Yeah taxes suck especially when single you get nailed pretty good.It's great you are saving for retirement early on but I would consult with an attorney  more than likely you will be in a chapter 13 may have to put retirement savings on hold to pay off some debt. I would contact a few different attorneys and go from there. From what you take home and to what needs to be paid out you are in the hole just over 1k a month and you'll continue to be in the red until something changes whether its salary increase a bonus etc to help lessen the burden. Bankruptcy is never an easy choice I debated about it for over a year but I just prolonged the inevitable but now I am near the end of my BK.

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I dissagree with you... I just filed and was in about the same exact situation as this guy, its kind of eerie actually. Im 35 years old and had about 75k in unsecured debt making 60k a year. I made too much but my lawyer said i passed the means test. It looks like he clearly can't afford all his montly bills and when you add food, water, rent, utility, gas, car maintence , clothes etc...he will have more bills to pay than what he makes. I think he can qualify for chapter 7.. 

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it can happen. Just the matter of attorney and means test.  It's why I suggest talking to one. Glad to hear you got chapter 7

[Anonymous]

Yea I hope it's a ch.7, but I have a feeling my salary will stop it even though my monthly pay does correlate.

[Anonymous]

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@Anonymous wrote:

My salary is 114k, but between taxes and retirement my monthly take home is $4500.

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Are you sure your tax withholding is correct? How much are you saving for retirement? What other deductions are coming out of your paycheck (ex: health insurance)? Are any optional?

$4,500 x 12 is $54,000. $54k/$114k is about 47%. With an expensive health insurance plan that's possible. It would definitely be worth double checking though.