Would you file or not?

[Anonymous]

I am currently 30K in debt (all unsecured and dischargeable - CC's and a personal loan) and make around 27K when I am working (I am currently out of work).   My rent uses almost all my net pay but I am hoping to maybe get into senior housing.   I am not sure what to do.   I am not in great health, really 40 hours a week is all I can muster when I am working.   Should I wait to get into a lower rent situation or just file BRY?  I am drowning and deeply depressed.

My credit is already tanked- 591 as of last week.   I am not being sued by anyone nor am I in collections yet (despite being 90 days past due on the loan). 

My minimum payments total $ 643/mo.

[Anonymous]

Welcome to the forum! Before you seriously consider filing bankruptcy you need to consult with an attorney. They will talk to you about your situation and let you know your options, and they will have that talk with you for free.

Aside from that, in my opinion, a few things to think about:

- I would think about holding off on the bankruptcy until you get some clarity about job situation. You may have to continue going into debt in the short-term to get by (if you aren't working) and if that is so you want to be able to discharge those debts later in any bankruptcy filing. If you file too soon and have to incur more debt quickly after that.... you won't be able to get rid of that new debt.

- I would try to get into a different renting situation before you file. I don't know how senior housing works (vs. the regular renting situation) but your options may not be as good after you file as potential landlords may judge you for your bankruptcy for awhile. About a year before I filed I signed a 3 year lease on my place. I did that on purpose because I saw storm clouds on the horizon for me. Good credit was a must. I still had good enough credit left at that point they let me in. A year later I filed and when I told my landlord about my filing he was shocked but I have a 100% on time payment history with him and assured him I was good to finish out the 2 years on my lease. If I had come to him asking for a place to live after I filed though (instead of a year before filing), he would've judged me for my filing and likely not given me a chance. Timing is everything, like most everything else.

- The other reason why you want to try to get into a different renting situation before you file is because you don't want to put yourself at additional risk for financial problems later. So, let's say you get a clean slate with your filing. But, after filing, you're still in the same renting situation and your rent takes up most of your monthly income. What if something breaks down? What if unexpected expenses occur? If you're barely breaking even at that point, with really no opportunity to save a little each month for a rainy day, when a rainy day comes you'll likely look to credit cards and loans to get you by, which wouldn't be great as it might put you at additional risk down the line for future financial concerns.

Hang in there! I know it's very hard dealing with this stuff. It's heart-wrenching and the stress can be incredibly tough to deal with. But, there is definitely hope of a way out of this. There always is. I would inform yourself as best you can (talk to people on here and get actual legal advice from an attorney) about your options at this point so that when you make your decision, whatever that might be, you'll know you're making the right decision for you!

[FireMedic1]

I'll never say yes go file. I say it like this. In two yrs time will you be better off not filing and trying to pay all that you owe that almost matches what you make a year when you work. Or if you file will you be better off debt free and new start in life in the same 2 yrs. Your choice.

[Shooting-For-800]

Call all your debt and explain being out of work, Covid relief, etc.

Remember which ones worked with you and which ones did not.

I would open a new free checking account at a bank that you do not have any cards or debt with.

Keep your old checking acctwith little in it.

I would stop paying all credit cards except one with the lowest balance that is still working.

After 3-6 months of non payment, you will start getting offers to settle your balances.

You can negotiate these to 10-50% of your balances in general.

Pay off one at a time.

If you can not handle that stress....file for BK now while you clearly qualify being out of work.

GL!

[Anonymous]

Thank you, all of you.   You have given me many points to consider.   I am worried about being able to find a place post-BRCY, but I also know I could never repay the 30K in two years, but my credit could greatly be recovered by then post-BRCY.   At best, given my current salary expectation and history, I figure no less than 5-6 years to pay back.  Probably longer, but I don't know how to calculate all that interest.  

As far as charge-offs, I thought you could still be sued at some point or a third party agent could still try to collect, but I could be mistaken.  

[Shooting-For-800]

If you want to calculate your interest, just use a simple interest loan calculator for a ballpark idea.

$30k at 15% = $700 per month for 5 years.

$30k at 20% = $800 per month for 5 years.

$30k at 25% = $900 per month for 5 years.

Hope that helps.  GL!

[Anonymous]

So in a best case scenerio I am looking at being debt free in 5 years assuming I make minimum payments which I can't.   I do believe I should file CH 7.   

I think I should just stay in my current apartment for now, and then file, rather than file and then look for someplace new.   

I have never missed rent so I don't think they can throw me out, assuming they even learn of the BRCY (since I own them no money).

[Shooting-For-800]

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@Anonymous wrote:

So in a best case scenerio I am looking at being debt free in 5 years assuming I make minimum payments which I can't.   I do believe I should file CH 7.   

I think I should just stay in my current apartment for now, and then file, rather than file and then look for someplace new.   

I have never missed rent so I don't think they can throw me out, assuming they even learn of the BRCY (since I own them no money).

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If you don’t owe them money, they won’t even think about kicking you out.  They probably won’t even know.