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Only 30, and over 30k in debt! Should I file bankruptcy?!? Please help!

CurlyShirley
Valued Member

Only 30, and over 30k in debt! Should I file bankruptcy?!? Please help!

Last year I was sitting at 700 fico score. In the last year, I’ve accumulated a large amount of debt after moving out on my own. I went from having 2 cc to 11. I have taken out several loans and now I am drowning under a mountain of debt. For the most part, I have paid my accounts on time.  Between January and April, I started to miss payments. I have now caught up on everything. Once everything was back to current, I decided to write out all of my expenses. For my credit cards my payments total 409 monthly, this I feel like I can handle. My loans, on the other hand, come up to 1k a month. My loans are what I know I cannot afford to pay anymore. I am wondering if I should file ch. 7.  My total debt is over 34k.

 

Here is a breakdown

  • Citi diamond (now closed) 200 CL opened from 2/17-4/17. bal 100 
  • CareCredit opened 6/16. 1k CL 30days 2/17 60 days 3/17. bal 750 
  • Walmart opened 7/16 600CL never over 30days late , but 1 returned payment (they closed it after that one returned payment) bal 646
  • BofA opened 7/16 never late 500CL bal 420
  • Amazon 7/16 30 days late 4/17 700CL (they closed this one too, do idea why. I guess since it’s the same bank as walmart). bal 660
  • Target 7/16 never late 300CL (I think its closed too because my balance is 250, but they are saying I have 0 avail).
  • VS 1/16 Never late 850CL bal 688
  • Kays 12/15 30 days late 3/17 (closed after 1 late payment) 550CL bal 120
  • Cap1 QS 30 days 3/17. 2150CL (closed after 1 missed payment and 1 returned payment bc I switched banks and forgot to change my bank info. I had automatic payments). bal 2171
  • Cap1 Platinum 500CL opened 10/12 90 days late 1/15-3/15. 4/17. (4 missed payments). bal 507
  • Credit One opened 4/14 30 days late 2/15, 10/14, 4/17. (3 missed payments). 700CL bal 700

 

For my loans, I’ve only been late on 2, and that’s with the Credit Union. 60 days late 3-4/17.

For my auto loan with NMAC, I’ve been late 8 times since 4/14. 7 30 days, 1 60days.

 

Total Credit card debt 6,334,20

Loans: 11,034.73

Collections (mixture of old debt and medical): 14,304.46 (only 5997 is reporting on my credit report).  

Unpaid Payday loans: 3,396.85.

 

Total debt not including my car 34,944.19.

 

My car is worth 9k, but I owe 19k, and my student loans are in deferment.

 

So, my question is…. Is bankruptcy my only option? I am so confused. People around me are telling me that I should, but I ruined my credit in my early 20s. I just got it back on track last year for my 30th, and now I feel like I’ve ruined it again. I have been reading a lot about people who have recovered from bankruptcy, but I am scared I won’t be as successful. I feel ashamed that I let it get this far.

5 REPLIES 5
CreditExpressNJ
Established Contributor

Re: Only 30, and over 30k in debt! Should I file bankruptcy?!? Please help!


@CurlyShirley wrote:

Last year I was sitting at 700 fico score. In the last year, I’ve accumulated a large amount of debt after moving out on my own. I went from having 2 cc to 11. I have taken out several loans and now I am drowning under a mountain of debt. For the most part, I have paid my accounts on time.  Between January and April, I started to miss payments. I have now caught up on everything. Once everything was back to current, I decided to write out all of my expenses. For my credit cards my payments total 409 monthly, this I feel like I can handle. My loans, on the other hand, come up to 1k a month. My loans are what I know I cannot afford to pay anymore. I am wondering if I should file ch. 7.  My total debt is over 34k.

 

Here is a breakdown

  • Citi diamond (now closed) 200 CL opened from 2/17-4/17. bal 100 
  • CareCredit opened 6/16. 1k CL 30days 2/17 60 days 3/17. bal 750 
  • Walmart opened 7/16 600CL never over 30days late , but 1 returned payment (they closed it after that one returned payment) bal 646
  • BofA opened 7/16 never late 500CL bal 420
  • Amazon 7/16 30 days late 4/17 700CL (they closed this one too, do idea why. I guess since it’s the same bank as walmart). bal 660
  • Target 7/16 never late 300CL (I think its closed too because my balance is 250, but they are saying I have 0 avail).
  • VS 1/16 Never late 850CL bal 688
  • Kays 12/15 30 days late 3/17 (closed after 1 late payment) 550CL bal 120
  • Cap1 QS 30 days 3/17. 2150CL (closed after 1 missed payment and 1 returned payment bc I switched banks and forgot to change my bank info. I had automatic payments). bal 2171
  • Cap1 Platinum 500CL opened 10/12 90 days late 1/15-3/15. 4/17. (4 missed payments). bal 507
  • Credit One opened 4/14 30 days late 2/15, 10/14, 4/17. (3 missed payments). 700CL bal 700

 

For my loans, I’ve only been late on 2, and that’s with the Credit Union. 60 days late 3-4/17.

For my auto loan with NMAC, I’ve been late 8 times since 4/14. 7 30 days, 1 60days.

 

Total Credit card debt 6,334,20

Loans: 11,034.73

Collections (mixture of old debt and medical): 14,304.46 (only 5997 is reporting on my credit report).  

Unpaid Payday loans: 3,396.85.

 

Total debt not including my car 34,944.19.

 

My car is worth 9k, but I owe 19k, and my student loans are in deferment.

 

So, my question is…. Is bankruptcy my only option? I am so confused. People around me are telling me that I should, but I ruined my credit in my early 20s. I just got it back on track last year for my 30th, and now I feel like I’ve ruined it again. I have been reading a lot about people who have recovered from bankruptcy, but I am scared I won’t be as successful. I feel ashamed that I let it get this far.


Ok so firstly dont worry take a deep breathe no sense in stressing about something thats beyond your control at this point... There is no sweet spot number for a Chapter 7.... What is your income?

 

Also looking at your current debts you wont be burning many if you made the ultimate decision to file so there will be light at the end of the tunnel i just filed for the first time myself.

CH7 Filed (3/29/17) - 516 EQ, 517 TU, 483 EX | Discharged (5/31/17) - 538 EQ 501 TU 559 EX | Current (2/24/21) - 680 EQ - 665 TU - 683 EX
- Navy CLOC $2K - PenFed CLOC $500
- NFCU moreRewards $15k - NFCU cashRewards $12.5k - PenFed PathFinder $10K - PenFed Rewards $7.5K
- BestBuy Visa $2K - Merrick $2.3K - Uber Visa $1K
- Macys Store $5k - Target Store $2.2K - KingSize Store $700
Message 2 of 6
CurlyShirley
Valued Member

Re: Only 30, and over 30k in debt! Should I file bankruptcy?!? Please help!

I just took a pay cut so I'm only at 30K now. 

Message 3 of 6
CreditExpressNJ
Established Contributor

Re: Only 30, and over 30k in debt! Should I file bankruptcy?!? Please help!


@CurlyShirley wrote:

I just took a pay cut so I'm only at 30K now. 


If I were you i'd pay down the low ones just so that they arent  IIB so you wont have a problem with getting back with the lender for little as nothing such as that Citi Diamond....After that have you exhausted all options for maybe debt consilidation maybe do some homework into those type of loans if declined recon and state your case....

CH7 Filed (3/29/17) - 516 EQ, 517 TU, 483 EX | Discharged (5/31/17) - 538 EQ 501 TU 559 EX | Current (2/24/21) - 680 EQ - 665 TU - 683 EX
- Navy CLOC $2K - PenFed CLOC $500
- NFCU moreRewards $15k - NFCU cashRewards $12.5k - PenFed PathFinder $10K - PenFed Rewards $7.5K
- BestBuy Visa $2K - Merrick $2.3K - Uber Visa $1K
- Macys Store $5k - Target Store $2.2K - KingSize Store $700
Message 4 of 6
harleygirl1987
Frequent Contributor

Re: Only 30, and over 30k in debt! Should I file bankruptcy?!? Please help!

I honestly wouldn't let your age deture you from filing for BK if you need it. My husband and I had to file BK due to a continuation of job issues with his employer and medical issues. Life happens, people understand that. We're 7 months post BK and my credit is actually better than it was before. Sure it's a slow rebuilding process, but I already have 2 CCs under my name which aren't store cards, and two store cards, and an auto loan. The amount of stress I don't have in my life anymore is SO worth filing BK on our $80k of debt, I can actually sleep again and don't have to juggle paying bills or deciding if I can buy food that week for me or my pets. My advice is to really think about it, if you feel for you and your situation you'll benefit then do it. If you don't think you'll be able to pay off your debt in the next 5 years then it's most likely worth filing bk. You could always call a NON FOR PROFIT debt consolidation company (example Debt Reduction Services) and see what they can do for you with regards to the CCs and see if they can help get the APRs lowered so you can possibly pay those off, they might be able to help guide you as wel if BK is the better option for you.

Again don't feel bad due to your age, stuff happens.. I've seen 18 and 19 year olds filing BK on like 10k of debt since htey don't get it so at least you're already better off than them!


@shaun2009 wrote:

@CurlyShirley wrote:

I just took a pay cut so I'm only at 30K now. 


If I were you i'd pay down the low ones just so that they arent  IIB so you wont have a problem with getting back with the lender for little as nothing such as that Citi Diamond....After that have you exhausted all options for maybe debt consilidation maybe do some homework into those type of loans if declined recon and state your case....


 

Ch7 BK filed 7/5/16, DC 10/12/16
Message 5 of 6
wa3more
Established Contributor

Re: Only 30, and over 30k in debt! Should I file bankruptcy?!? Please help!

OP is in tough spot owing 100% of her income, more if car is included.

 

If you are thinking BK, I would stop paying everything now, it would onky be throwing good money after bad. Also, any payments made to creditors during a certain period, maybe 90 days, might be considered preferential payments and be returned.

 

Personally, i would :

 

-stop paying everything.

-See who files suit and see who goes away. Around chargeoff time, 180 days, you might get settlement offers for 50% off.

-Research arbitration and see if your agreements have them. Most major cc's will have , hopefully JAMS. This makes it real expensive for creditors especially for small balances.

 

Again, this is a personal issue. What i'm suggesting is what some would call passive bankruptcy without the expense or filing BK. It takes a strong stomach and nerves too at times.

 

The car loan is a problem, being upside down for 10k.

 

Message 6 of 6
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