I have over $90K in debt, mostly from credit cards after I kicked my gambling addiction. I’ve set up payment plans with almost all of my creditors, and I can only afford it because I’ve been doing Uber Eats part-time. My car has 185,000 miles on it, and when it breaks down, I won’t have money to replace or fix it. Should I file for Chapter 7 bankruptcy or continue with the payment plan? I don’t have the $2K for filing, but I could try borrowing it if it’s the best option. My credit score is under 500, but it’s slowly improving because I’ve been making payments. The total debt should be paid off in 5-7 years if everything goes smoothly, which never happens. What’s the best choice for my future? I turn 50 in 2 months—does that change anything? I’d really appreciate any advice. Thanks!
Sounds like you need a fresh start. You can file bankruptcy yourself—it’s just paperwork, no need for a lawyer. Forget Uber Eats, get a couple of jobs even if they’re at 7-11 or McDonald’s and work at least 70 hours a week. Save everything. By 55, you’ll have some savings and self-respect, and then you can figure things out.
@Ray
Thanks for the reply, but I can’t quit a job where I make $25/hr and work my own hours to go work at McDonald’s.
File Chapter 7. In 18 months, you can buy a house and creditors will start giving you credit again.
I really feel for you! I’m struggling with $13K in debt and it feels overwhelming, so I can’t imagine how tough it must be for you. Finding a job is hard, and trying to stay positive is tough. I hope things get better for you soon so you can enjoy your life.
In your case, filing for Chapter 7 might be the best option. If you have no assets, it will save you money in the long run. Your credit is already in bad shape, and if you can’t pay off the debt, it’s unlikely to improve. After filing, your credit can bounce back quickly. You could be back in the 700s in a little over a year. But talk to an attorney to make sure all your debts are covered.
@Mason
Thanks for the advice, I really appreciate it.
Marin said:
@Mason
Thanks for the advice, I really appreciate it.
Let me know if you’re considering other debt solutions. I can explain the pros and cons of each one. The key is to find what works best for your situation and make sure it’s realistic.
@Mason
I was thinking about bankruptcy, but I came here to see if anyone had a better idea. I feel like I should pay my debts off, but then I’m like, screw these banks. They got bailed out, so now it’s my turn.
@Marin
BK7 is used by many successful people because it gives them a fresh start without the weight of past mistakes. If it’s an option, use it. And I agree—screw the banks, they have enough money.
You’ll still be making payments under Chapter 13, but you may qualify for Chapter 7 depending on your financial situation. A lot of lawyers offer free consultations, and some may let you pay in installments. When I filed in 2017, I used half of my tax refund to pay the attorney.
@Brice
I’d qualify for Chapter 7 since I have no assets, except a car worth about $4K. Thanks for the reply.
You might lose your car in Chapter 7 unless you can buy it back. Maybe it’s time to get a bike and find a couple of jobs close to home.
Ari said:
You might lose your car in Chapter 7 unless you can buy it back. Maybe it’s time to get a bike and find a couple of jobs close to home.
If his car is paid off, even with all those miles, they probably won’t want it.
You could let the debt go to collections. After 7 years, the negative marks on your credit will drop off, and you can start fresh.
Don’t file for bankruptcy. It takes a long time to recover. Stop paying your cards. In about six months, the credit card companies will sell your debt, and then they’ll negotiate with you. Save up money and pay them off for a fraction of what you owe. I did this last year and paid off $40K for just $14K. It’s going to cost you more than bankruptcy, but you’ll recover quicker.
@Amari
That’s bad advice. With that much debt, creditors could sue OP. No way they’d sell $50K in debt to a collector.
Remy said:
@Amari
That’s bad advice. With that much debt, creditors could sue OP. No way they’d sell $50K in debt to a collector.
They do sell the debt, and $50K isn’t a big deal for them. My friend has helped people with much bigger debts, and they’ve done it successfully. Not promoting him, just sharing what’s worked for others.
@Amari
I’ve heard creditors can sue me and garnish my wages, so I’m definitely not stopping payments. Everything I’ve read says that’s the worst thing you can do. But I’m glad it worked out for you.
Marin said:
@Amari
I’ve heard creditors can sue me and garnish my wages, so I’m definitely not stopping payments. Everything I’ve read says that’s the worst thing you can do. But I’m glad it worked out for you.
They can sue, but they want you to be scared of that. I’ve been answering their calls regularly, and nothing happened. But handle your situation however feels right for you. I’m almost debt-free now, and my credit score is coming back up.