Should I file for BK7?

[amaisonet]

Hi,

I am looking to get some advice on if I should file for a BK7. 

I have about $65k in credit card debt that came from paying for school, auto repairs, and medical on credit cards. I also began to tell myself buying this wont hurt since the above was already there. I also have about $60k in student loans that I know is not forgivable but between making payments on that and just interest alone on the credit cards has been eating me alive to the point I cant sustain it much longer. 

I will be burning a bunch of CC companies, Chase ~$17k, AMEX ~$13k, Discover ~$4.5k, WF ~$7k, Citi ~$5k, Apple ~$5k, Capital One ~$6k, BofA ~$2k.

I also have dept to my parents for rent and misc that total ~$12k

I just turned 28. I have a pending PI case with an opening offer of ~$15k from SF and my attorney is fighting with them on getting more but I have not had any updates in months. I do not have any substainal assest. I am worried about building my future and being able to purchase a house in the next 3-5 years. 

I am not sure what I should do, but I have had no cash due to me paying all the interest that is probably over $1k a month.

Thanks in advance for any advice or input.

[amaisonet]

I would like to quickly add my credit scores.

Experian - 645 as of 5/15/24

Equifax - 653 as of 2/16/24

Transunion - 646 as of 2/16/24

Perfect payment history, 10 years of credit, 2 new RI,Exceptional credit mix.

Credit utalization is ridiculous at 98% due to majority of CC's rightfully lowering my credit limit. 

[JoeRockhead]

Welcome to the forum. 

No doubt your scores are low because of the high reported usage. Have you considered contacting these lenders to see if they can help you with a hardship program? Considered a second job, or side gig to help pay down the high balances?

If you have absolutely no other means of earning extra income to get this debt wiped out, and righting the ship, bankruptcy might be the most logical choice for the fastest way back to a normal life. If you haven't already, I'd encourage you to speak to a bankruptcy attorney. That will give you a better idea about whether you qualify, or not... and help you make a decision. 

[sccredit]

Before considering bankruptcy (which you seem like a good case for it, aside from the PI settlement) you need to take a hard, brutal, look at your budget. Without the debt payments can you cash flow your lifestyle without adding debt? If you cannot you need to figure out how to cut costs to where you can. If you truly cannot then bankruptcy is a short term band-aid and you'll end up in the same position with no safety net. 

[amaisonet]

Thanks for the input and very valid point. I believe the cause of all this was me. I have been way more strict on my spending and a big factor of mine was constantly eating out and "doing whatever I wanted" especially when I was expecting a large pay out for the PI case. I have given myself a budget of $200 per paycheck biweekly for me spending and been good at keeping that. I haven't added any new debt for months now and proud of that but I dug a whole for myself I can't climb out of. Honestly quite embarrassing due to up till life hitting hard in 2022 I have had perfect credit with over $115k in a credit line. I was at around a 780 and couldn't seem to get further till my age of credit history was longer. I used the excuse of being in debt for things I couldn't avoid and ran with it. Again my responsibility and don't know where to go from here other then bankruptcy. I also have a hard time because I know I spent the money and I should pay it back.