Probably Filing CH7 in VA

[Anonymous]

I just had a consult with an attorney this morning after having a sort of realization that I may be in over my head when it comes to debt. It hit me that after paying bills AND debt repayments (not including car payment in debt repayment and I am including it in bills, cause around here it's an essential due to lack of public transport/Uber/Lyft options) I would MAYBE have $150-$200 left to get groceries, put gas in my car, buy household essentials like toilet paper, or cover some random emergency. Overall, I am comfortable with the decision to file except for one pickle.

The pickle that I have is that I work for a financial institution, a credit union specifically. I was advised by the attorney I spoke with that I cannot be fired for filing for bankruptcy. BUT my concern is that I do have a personal loan with that institutuion that I took out from before I started working there. It has never been late or anything like that. I'm just extremely worried that I may get fired for filing and them being in the mix, due to the expectation that we hold ourselves to a higher standard of financial responsibility. The attorney suggested I speak with someone at my workplace directly and I plan on doing so, but that doesn't help the anxiety. 

Just for kicks, I will list out my debts on my credit report here.

Car Loan: $13,500 ($314/mo... with DCU, hoping that they will let me keep my car as I have not been late except by MAYBE two weeks since I've had it)

PL: $2,700 ($83/mo... DCU)

PL: $2,000 ($183/mo... DCU "quick loan"; this is an acct less than 90 days old so, from my research, it may not get discharged which does suck as it's expensive but I could just buckle down and donate plasma or something for the 12mos to pay it off)

PL: $2,200 ($109/mo... this is the PL with the FI I work for, the price includes full credit protection and if there's a way to reaffirm or pay them outside of the bankruptcy if it means I'll keep my employment, I may see about having that protection taken off)

CC: $1,700 ($46/mo... local CU)

CC: $600 ($40/mo... Indigo)

CC: $600 ($25/mo... CapOne)

Not listed on my credit report (that I can see, but I also do not know if these can be included... tips would be helpful on how to go about this like if I need to add them to my bk paperwork or do something after discharge) but still exist.

Affirm: $194.72

Affirm: $840.82

Afterpay: $700ish

ChexSystems (SunTrust): $1,000

ChexSystems (First Citizens): $700 

Both of the ChexSystems hits are from 2020, so I think from what I've read they would "fall off" around 2025. 

Be gentle, pls. It's a hard pill to swallow, but I'm ready to make the changes necessary to better myself and my future. I think this is the first step. I'm in VA, if that adds any context for anyone.

[Jnbmom]

What is the total debt overall? Unless I am missing something your debt  does not seem that high? I know the amount of debt one has can be different burdens on people depending on circumstances.

[GZG]

agreed with above, this seems like a 'make more money' situation and not a file BK situation

how many free non-working hours do you have and how many of those hours can you put towards uber/lyft/walmart literally anything? 

[TRC_WA]

Filing Ch 7 over $10k plus a car loan seems foolish.

[Jnbmom]

Besides the car it looks like a little over 13K is that correct ?

bankruptcy is a last resort and if that amount is correct I would search every other avenue . Cut your expenses to bare minimum. Get a part time job in the evenings and weekends .

[FireMedic1]

Welcome @Anonymous 

Could you list your debts as:

Cards: Creditor name/ Credit Line/ Balance

Loans. Lender/ Loan amount/ Balance

No private employer may terminate the employment of, or discriminate with respect to employment against, an individual who is or has been a debtor under this title, a debtor or bankrupt under the Bankruptcy Act, or an individual associated with such debtor or bankruptcy

• https://www.nolo.com/legal-encyclopedia/will-bankruptcy-affect-my-job-future-employment.html 

[Dbremer]

Hey there!  

My husband and I have been there!  It is a hard pill to swallow, but filing BK was the best thing we ever did!  So much relief, a fresh start to begin making smart financial changes.  

I would talk to someone at your work place and let them know the situation.  I'm sure that sounds terrifying, admitting something very personal to a boss.  Deep breath! They might tell you some options in regards to the loan you have with them.  

I wish you nothing but the best.  There is light at the end of the tunnel! 

[citymunky]

While we don't have the full picture, like your income, housing expenses, etc, (that is 100% ok if you don't want to share that info) I can agreed that filing for CH7 over 13K in debts besides the vehicle seem a bit extreme. However, with all those individuals debts, it seems like you are drowning by trying to keep maintaining all those minimum payments. 

Things that might help:

1) Reduce spending if possible.

2) Pick up a side job or side hustle.

3) If you don't have an emergency fund that can cover at least $500-$1000, save up (advice find a bank that high has APY HYSA or MMA, a regular savings account is not going to cut it.) But you should know that working at a FI.

4) Make a plan to pay off debts (Debt Snowball by paying off smallest amount first or Debt Avalanche by paying off acct with highest APR first). 

[GreatLife]

Based on the limited info you provided these are my thoughts:

- Discuss or inform your employer only as a last resort.

- Inquire if either of your CU's will provide options for a secured or unsecured consolidation loan. If secured and the car has value & equity. Include the remaining car loan balance if required. Go for the longest term and smallest monthly payment, even if the loan means very high APR.

- If you have 401K funds with current or former employers then take a loan or withdrawal, even if it means losing money to tax or age related penalties.

- Temporarily suspend 401K contributions, or only contribute up to the company match.

- Donate the blood and/or get a side job that regularly pays enough for gas/food/household expenses without need to use a dime from your "real" paycheck.

Please keep us informed of your decisions and the outcome for this journey. You can do it and there are great forum members here to help along your path.

Good Luck & Best Wishes

[GreatLife]

Just to add that I would also consider talking to a company like One Main about secured or unsecured consolidation loans before involving my employer or filing bankruptcy. 😊