We are $55k in debt, make $80k a year, and have no major assets. After paying bills, we are negative every paycheck. Would filing for chapter 7 bankruptcy be the right move for us?
I filed for chapter 7 this past summer, and my only regret is not doing it sooner. Most bankruptcy lawyers offer free consultations. Speak to a few and see what they recommend. Wishing you the best!
Have you considered debt consolidation? I’m in one now, and it really saved me.
Quin said:
Have you considered debt consolidation? I’m in one now, and it really saved me.
Which company did you use for debt consolidation?
Quin said:
Have you considered debt consolidation? I’m in one now, and it really saved me.
Which company did you use for debt consolidation?
I went through Discover.
Maybe bankruptcy could work, but do you have a car loan you want to keep? Also, are student loans part of the debt? Those usually aren’t discharged.
Perry said:
Maybe bankruptcy could work, but do you have a car loan you want to keep? Also, are student loans part of the debt? Those usually aren’t discharged.
No car loans or student loans. My car is 20 years old and worth about $1k. Most of the debt is from credit cards and personal loans for medical bills.
@Levi
If that’s the case, bankruptcy might be the best way to clear everything.
@Levi
Have you tried working with a non-profit debt management company? They can negotiate with credit card companies to lower interest rates and might help you set up a payment plan for hospital bills. If you’re considering bankruptcy, some of these companies offer assistance with that too. It’s worth exploring before making a final decision.
It might help to look at reducing interest or taking on a higher-paying job if possible. Medical debt can sometimes be negotiated, especially if it’s in collections. Could you explore side gigs like delivery services to tackle some of the debt? $55k is a lot, but changes in spending or income could make a difference.
@Sage
We tried ACCC, and while it helped a little, we’re still barely breaking even every month.
Talk to a lawyer. Maybe try debt consolidation first. If that doesn’t work, then consider bankruptcy. It’s a long process and usually the last resort.
Hale said:
Talk to a lawyer. Maybe try debt consolidation first. If that doesn’t work, then consider bankruptcy. It’s a long process and usually the last resort.
Chapter 7 isn’t as simple as it seems. It takes time, costs around $2k, and involves a lot of paperwork. Plus, it stays on your credit for 10 years.
@Linden
Still, spending $2k to get rid of $55k in debt can be worth it if you don’t have assets. Credit recovery can happen within a year for some people.
How did you get into this debt? Make sure the same problem doesn’t happen again after filing for bankruptcy. That’s really important to think about.
If you can avoid chapter 7, do so. It has a long-lasting impact on your credit and makes it hard to get loans or financing. Look into debt consolidation instead, and maybe try to increase your income for a while. It won’t last forever, but it could help get the debt under control.
Probably. Start with a free consultation from a local bankruptcy attorney.
Are both of you working as much as possible? Bankruptcy stays on your credit for years. Maybe try bringing in an extra $1.5k a month. It might not take as long as you think to pay off the debt.
Ali said:
Are both of you working as much as possible? Bankruptcy stays on your credit for years. Maybe try bringing in an extra $1.5k a month. It might not take as long as you think to pay off the debt.
We both work 50+ hours a week. I tried picking up a second job, but it was so exhausting that it started to hurt my main job.
@Levi
What do you and your spouse do for work?