Struggling with Ch 7 decision

Anonymous · ‎10-04-2018

I’m new but a lurker. I know what I probably need to do but I’m having such a hard time finalizing that decision. I have 2 consults set up but thought I’d ask for feedback.

No lates or derogatory marks on my credit currently. Scores about 650 due to 75% utilization.
Medical bills, college for myself and my child and some legal issues caused my cc spending over the last 3 years to skyrocket.

Salary: 85K (Gross mth $7,070, Net $5,268)
Good Car: 2012, owe 12K not sure what it’s worth. 2nd car paid for driven by my son
Own my home: $130K left on loan. Tax appraiser says it’s worth $154K but the comps in my area are $190K

Credit Card $70K
Unsecured Loan (BBVA) $25K
Student Loans $62K
Outstanding Medical $4K

The part that worries me is burning companies that won’t take me back. I have Amex(3) only 2 with a balance, Barclays, NFCU(cc and LOC) Chase(2), Capital One and Discover.

I’m wondering if it wouldn’t be better to sell my home, take the equity and knock out a large portion of that. Sucks because I’ve had it 9 years and my youngest is just about to start High School.

But I have to realize I am drowning and stressed out!

Anonymous · ‎10-05-2018

Check with an attorney but your income is likely too high to file Ch7

Jnbmom · ‎10-05-2018

Your income suggests you may have to do a 13, but only an attorney will be able to tell you for sure.

EXP 780 EQ 791TU 795

FireMedic1 · ‎10-05-2018

The other posters gave great advise. But please dont sell your home over credit cards. You put too much into it. Thats your investment for the future. Even after you rebuild again. GL!

Anonymous · ‎10-05-2018

Well my first consult was today and he said I’m inches from Ch 7. If I had another car note or household member I’d be ok. I’m in Texas if that helps. He asked me to email my last 6 months stubs and he’d work it in more detail this weekend but it’s likely going to have to be Ch 13. I don’t know if my anxiety over ruining my credit will allow me to survive 5 yrs until discharge. I’m so conflicted. $2,400 in CC payments vs $300-$500 with a lot of conditions.

And yes, I worked so hard to get my house and was so proud to be a 29 yr old homeowner who was also a teen mom. Breaks my heart to think of selling. I may see if the outlook improves by January. I can take holiday time off without pay which may help.

Thank you all for the advice.

dynamicvb · ‎10-05-2018

@Anonymous wrote:
Well my first consult was today and he said I’m inches from Ch 7. If I had another car note or household member I’d be ok. I’m in Texas if that helps. He asked me to email my last 6 months stubs and he’d work it in more detail this weekend but it’s likely going to have to be Ch 13. I don’t know if my anxiety over ruining my credit will allow me to survive 5 yrs until discharge. I’m so conflicted. $2,400 in CC payments vs $300-$500 with a lot of conditions.

And yes, I worked so hard to get my house and was so proud to be a 29 yr old homeowner who was also a teen mom. Breaks my heart to think of selling. I may see if the outlook improves by January. I can take holiday time off without pay which may help.

Thank you all for the advice.

Have you had the house appraised? If the tax man says 152K, then the appraisal is probably up towards the 190 or perhaps 200. Have you thought about taking a second to pay off the CCs? That would give you breathing room on the payments and you should have enough to accelerate the payments on the second and get your equity back in a few years.

Started Rebuild 4/2018: EX 616| TU 604| EQ 621

Current 5/28/20:

First Goal Score: 750+ Reached 3/2019

Next Goal all over 800

FireMedic1 · ‎10-05-2018

@Anonymous wrote:
Well my first consult was today and he said I’m inches from Ch 7. If I had another car note or household member I’d be ok. I’m in Texas if that helps. He asked me to email my last 6 months stubs and he’d work it in more detail this weekend but it’s likely going to have to be Ch 13. I don’t know if my anxiety over ruining my credit will allow me to survive 5 yrs until discharge. I’m so conflicted. $2,400 in CC payments vs $300-$500 with a lot of conditions.

And yes, I worked so hard to get my house and was so proud to be a 29 yr old homeowner who was also a teen mom. Breaks my heart to think of selling. I may see if the outlook improves by January. I can take holiday time off without pay which may help.

Thank you all for the advice.

Do you work any OT? I had to stop for a while for being over the 7 limit

Anonymous · ‎10-05-2018

No, I’m salary so no OT. If I take a full day off I think I can take it without pay as long as I’m out of PTO. I can probably make that happen it’ll just put more strain on me trying to keep everything current.

Anonymous · ‎10-05-2018

I haven’t had an appraisal but I know 3 homes that are my exact floor plan that have sold in the last 6 month or are currently listed. All range from 190K - 203K.

Do you mean a second mortgage? I tried to refinance but they said my DTI was 55% and needed to be 45%. I’m not sure how different the requirements would be.

FireMedic1 · ‎10-05-2018

@Anonymous wrote:
No, I’m salary so no OT. If I take a full day off I think I can take it without pay as long as I’m out of PTO. I can probably make that happen it’ll just put more strain on me trying to keep everything current.

I had to basically quit working OT and my second job for about 3 months I think it was. It was a bit rough. But once I was DC'ed the gates were open again. My job I can request not to take any PTO if I dont want to use it. Maybe your job does the same. Wait and see what your lawyer says and how much and how long you'd have to cut back to get to a 7. Hope the selling of the house has left your memory by now. Dont do it.