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

Bmuum3
New Member

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

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.

Message 1 of 23
22 REPLIES 22
despritfreya
Frequent Contributor

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

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.

Message 2 of 23
Justme79
Frequent Contributor

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

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

Chapter 13
Date filed: 3/17/20
Meeting of the creditors (341): 5/20/20
Confirmation hearing: 6/11/2020
Deadline for filing claims: 6/17/20
Plan confirmed: 7/2/2020
Deadline for filing claims (Government): 9/14/20

Scores as of 05/08/21 (MyFICO Monthly Subscription/updates on the 8th of every month)
Equifax 666
Transunion 634
Experian 637

Open Accounts
Great Lakes (Student Loan) Pd Never Late - Perfect History/will not update until PIF $3,750 balance at $140 per month
Target (Survived Bankruptcy) Pd Never Late - Perfect History $2,300 limit/$0.00 Balance
Cartier (Survived Bankruptcy) Pd Never Late - Perfect History $8,000 limit/$0.00 Balance
NFCU Amex (AU) $25K limit/$10K balance (removing soon)
NFCU Secured Card (Trustee Approved) Card Graduated to NFCU Cash Rewards (Unsecured) $2K limit/will PIF each month before statement cuts
TD Bank Secured Card $500 limit/will PIF each month before statement cuts

All closed accounts are reporting correctly with $0.00 balance

Message 3 of 23
Mjhall85
Frequent Contributor

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


@Justme79 wrote:

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


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.

Chapter 7 filed 2/3
Discharged 6/30

Fico 8
EQ 681 TU 671 Ex 665
Fico 4 TU 690 Fico 5 702 Fico 2 693
Message 4 of 23
Bmuum3
New Member

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

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

Message 5 of 23
Mjhall85
Frequent Contributor

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

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.

Chapter 7 filed 2/3
Discharged 6/30

Fico 8
EQ 681 TU 671 Ex 665
Fico 4 TU 690 Fico 5 702 Fico 2 693
Message 6 of 23
weezy615
Member

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


@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.


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.. 

Message 7 of 23
Mjhall85
Frequent Contributor

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


@weezy615 wrote:

@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.


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.. 


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

Chapter 7 filed 2/3
Discharged 6/30

Fico 8
EQ 681 TU 671 Ex 665
Fico 4 TU 690 Fico 5 702 Fico 2 693
Message 8 of 23
Bmuum3
New Member

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

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.

Message 9 of 23
Throckmorton
Regular Contributor

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


@Bmuum3 wrote:

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


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.

Message 10 of 23
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