Should I File? (Chapter 7)

[mysterythemoon]

Hello. These last few years have been a whirlwind. I think I fell into the trap many here probably stepped in at some point. I work in sales. Was pulling in 70ish a year, easily making bills, ect. Then the last couple years happened. Company downsized, commissions were cut in half, bills started to creep up. I figured the next year would be better. It wasn't. And as I watched my debt grow, I became dispondent. But I was still making my bills, if only the minimum payments. But I was teetering, all the while knowing if anything major came up, I'd go over the cliff. Well my dog got very sick, vet bill ran up, and over the cliff I went. A couple 30 day lates on my credit report now. Never had that before. So here's where I stand:

34 years old. Single. No kids. I rent a condo. Live in CA. 

Debt: $46,000 ($1,400 per month in minimums & all unsecured CC), $11,000 (car through PenFed)

Cards I have: Amex Blue, Hilton, Bonvoy, BofA, Cap 1, Cap 1 QS, Disco, Chase Sapphire, Barclays, 2 NFCU, 2 Citi, WF Propel.

So I have two paths as I see it. Either cut bait right now or find a way to pay it off. I'm at the point where I'm willing to get a second job on the weekends. If I did that, I think I could pay it off in 4-6 years. But the amount I'm going to pay off in the end is obviously going to be closer to 100k than what I owe presently. Long story short, what should I do. I'm going to get the second job anyway. Would it be better to take the money from that and attack this debt, or am I deliusional and I should take the money I *could* use to pay off this debt and instead start a savings / rainy day account?

Also a few other questions regarding BK: Would I lose my car loan? I only owe 600 to Disco... Do I burn them anyway? Will NFCU cancel my checking account with them once I burn them on the two CC's (10k in debt)? Will I be blacklisted forever by every company I go BK on?

Thanks for any help. Boy do I feel like my back is against the wall. 

[Jnbmom]

What is your income? Your income will determine what filing status you are looking at either 7 or 13.

Have you sat down and analyzed your budget and expenses? Any things you could cut out or downsize ( cable, cell phone eating out etc). If you can get a second job, what would you be able to bring in? 

What are your balances and interest rates? Can you pay the minimums on all but one and try to snowball one account at a time?

As far as burning and blacklisting:

Chase, Amex Citi and Barclays will not forgive for a longl time

NFCU will also blacklist and I think only way not to is to pay them

Discover will eventually forgive

Cap one very forgiving

I would first see what if any cuts you can make and if you can add additional infome. BK is an option for alot of people it just depends on alot of factors though.

[mysterythemoon]

Income is 45k (roughly). That equals about $1200 per paycheck after taxes, ect are taken out. If I grab a second job, I think I can make roughly 10k more a year on the weeknds. My expenses are:

$1300 in rent and home utilities (I don't have cable). 

$230 car

$75 cell phone

$150 in grocery

$100 in going out

$100 gas

$13 Netflix

$19.99 gym

$1,400 in minimum CC payments (average APR 19%).

All cards are maxed out or close to it:

Roughly:

Chase: $10k

BofA: $6k

Cap1 QS: $5.5k

NFCU: $5k

NFCU: $5k

Amex: $4.5k

Citi: $3k

Amex: $2k

Citi: 1.5k

Barclay: $1k

Amex: $1k

WF: $800

Disco: $600

Cap1: $500

[FireMedic1]

What is your states means test salary to pass the test? Or whats your state?

[mysterythemoon]

California. Means test for one is 57k

[mysterythemoon]

My fork in the road is this: I keep paying the minimums. Get a second job. And pretty much dedicate the remainer of my 30's paying it off (I'm 34). I'll be poor, the money will go out just as quickly as it came in, but it will get done... UNLESS something huge comes up. Medical issue, car accident, ect. Then I'd be forced into this anyway most likely, and I'd just be further behind time-wise. I have no savings. Assuming I pull the trigger on BK, I could at least start to build savings this go round. But I know there are some on this board that went BK and regret it. 

[FireMedic1]

So your under the amount and could file. Now. This JMO. With the second job and your stating 4-6 yrs to pay it all off. In that time frame you could rebuild from having filed BK. I never say yes go for it. Yes you would lose all your cards. But be debt free. I had no cards in BK. Below in my siggy is 2 months shy of 4 yrs since BK. So its your choice. Work your hind end off. Or learn from your mistakes and get a fresh start. And start over again. I'm just laying it out there as examples. Home loan after 2yrs. AMEX after 5yrs. The list goes on and on. Best of luck whatever you decide. Only you know whats best for you.

[mysterythemoon]

I think that's where I'm leaning. I'm so mad at myself. I'd be buring all the biggies (I doubt Amex will touch me after 5 years). But I'd be just barely pushing this rock up the steep hill to pay all this off. And if just one bad thing happened -- boom, the rock ends up crushing me and I'm forced into this anyway. 

[Shooting-For-800]

Most cards will settle for 20%-60% of balances.

A part time job, paying a few small balance cards like normal and settling the rest could prevent you from BK and allow you to keep a few cards open and normal.

GL!

[FireMedic1]

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@mysterythemoon wrote:

I think that's where I'm leaning. I'm so mad at myself. I'd be buring all the biggies (I doubt Amex will touch me after 5 years). But I'd be just barely pushing this rock up the steep hill to pay all this off. And if just one bad thing happened -- boom, the rock ends up crushing me and I'm forced into this anyway. 

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Hey you think us BK'ers are proud of what we had to do? No. Yes I burned my back taxes. But I have never taken a dime of entitlements in my life. Should I have paid the taxes 16 yrs ago? Yes. But things werent good then. So life moves on. My outlook is I dont care what the name is on the card. As long as I get something back for using their card. I'm happy. I dont have a lets say a ego for what card I have in my wallet. Most of the time I pay with my phone anyway! LOL! Talk to your loved ones and disuss what would be best for you. I filed at 50 y/o. I'll be 60 when it falls off. But I'll be retired and making more money retired than when I work now. Best of luck either way. Wish I was in my 30's when I filed. Oh well.