Is Bankruptcy okay? I am 28 with two kids and getting married in 9 months. Will be okay???

Question

I make only roughly $2000 a month. In January, i mortgage payment becomes $2000+, i have credit cards that just keep getting more and more because of high interest rates, and my jeep is a 2005 and I pay $450 a month. I have weighed out all my options and I just can't afford this stuff any more without making my family suffer because we can't afford to do anything. I am so sure that bankruptcy is my only option but i just hate having this feeling that i have to declare this. Will it be okay, i like to think it is going to be a fresh start and all will be wiped clean. What do yunz that have been through this have for me for peace of mind? Thanks for your time and I am open to all answers or even questions!!

Answer 1

Don't declare bankruptcy. It will be on your record.

Sadly, i agree with what many other are saying. you are living WAY ABOVE your means.

Sell the jeep. Sorry, but it has to be done. Get a cheap used car that has good gas mileage.

I don't know what to do about the house - selling it may be a good idea, but you'd still need to live somewhere (can you move in with your parents for a while, as you clean this up??).

STOP SPENDING!

Cut up your credit cards.

Buy the BARE ESSENTIALS. Use coupons, look for deals, shop at the 99 cent store, get store clubs cards (if free). Borrow books, cds and dvds from the library. go to the park with your kids. play board games.

It won't be fun and it will be hard for a time, but you HAVE to do this to get out of the mess you're in. The tighter you fasten your belt, the sooner you'll get out of this.

any extra money that you have after your basic needs are met use to PAY OFF YOUR CREDIT CARD DEBTS!!!

I strongly suggest you talk to a specialist or someone who knows a lot about this for specifics.

GOOD LUCK! I'll keep my fingers crossed for you.

(but don't declare bankruptcy)

find another way to earn cash. Get a part time job, or do freelance work (do you write? etc). try online surveys.

http://www.cashcrate. com/678595

and... ahem... why do yall refer to this person as "her"?? The name is Rob, so I assume it's a guy. Just something I noticed lol!

Answer 2

Wow! have to apologies for all the nasty comments that are being expressed.

First. Bankruptcy is like a black cloud over your head that is going to last a very long time.

second. find out if you are eligible to board international student if you have the room it would work for you.  Contact the board of Education in your town.

I would down size the jeep to a car. Sorry

Watch the TV show death by debt religiously at less three night a week.  Watch, Listen and Learn it works.

rent your basement out.  Try and find another way of paying off your credit.

Good luck.

Answer 3

Seeing you've had all the lectures here and no one really answered your question....Contact a good qualified bankruptcy attorney in your area, most will see you on a free first consultation or free first hour. From what you've stated with your income and your monthly mortgage, you don't make enough to afford the house, and the jeep payment is way too high for your income. You don't state where you live, so I can't really figure what chapter bk you would qualify for. A chapter 7 filing you have to meet a certain amount of income for the year base on what state you live in. With the new laws you have to take a credit counseling class, two sessions, one before and one right after court. You also have to pass a means test, basing income, debts and this tells if you qualify for a chapter 7 filing. In a chapter 7, to qualify for it and be able to keep the house, you would have to be current on the loans and re-affirm on the loan, (agreeing to pay per the norm), same with the vehicle...but...advice, put a for sale sign on the jeep and find something cheaper, making it easier to afford the mortgage. You stated you are getting married, will the income be more that you will be able to afford the mortgage payments and be able to keep the house?? These are the questions you need to be asking, not just knowing you have put yourself in the bind and bankruptcy should be the absolute LAST resort. If you don't qualify for a chapter 7 and qualify for a chapter 13, you don't have to be current on the home, or the vehicle, but the payment plans are based on your income and you pay each month an amount to the US Bankrupcty Trustees, which is taken out of your paycheck each pay period, the amount is determined by the trustee after they look at all your income, debts, assets and taxes. The plans run 5 years, sometimes 3 yrs depending on your income. While in the plan you cannot finance any new loans if someone is willing to give you one without the approval of the Trustee. Bankruptcy is on your credit report for 10 years, the debts will show for 7 years. If you qualify for a chapter 7, you will be able to get back on your feet, but, I would suggest getting rid of the jeep and getting something more affordable. I filed last year, already have ONE credit card to re-establish and I pay if faithfully every month and I just was approved for a new Harley Davidson motorcycle as a joint with my husband. I have excellent income and my husband does too, but, I went thru a divorce leading me to file, so, I know the stress of going thru it all. My best advice, gather a list of all your bills, your income for 6 months, taxes for the last 4 years and start calling bankruptcy attorneys in your area, call several and see which ones will see you for free the first visit. Make a couple appts to compare the pricing, now you're looking at a range from 800-1500 to file for bk and a chapter 13 can be a lot more than a chapter 7....A good bankruptcy attorney will be able to tell you in that visit exactly what they feel you need to do, what you qualify for and what they suggest you keep and get rid of. If you have any questions, feel free to email me...I've worked for a bk attorney and glad to help. Good Luck!!

Answer 4

You just don't make enough money for all of these expenses.  I'm sorry you are in this situation, but you put yourself there.  Do you have equity in the house?  That mortgage payment is insane for someone who makes $2K a month.  You are going to have to make some radical changes.  I think you should consider moving into an affordable apartment, and getting a cheaper vehicle.  Seriously, I make 6 figures and my mortgage payment is half that, and I've never had a car payment more than half that.  Also, maybe a 2nd job, or consider furthering your education so you can get a better job.  Your kids are counting on you.  Good luck!

Answer 5

Why did you get a mortgage that will be $2000+/mo when your income is $2000/mo?

My only advice is to sell anything that is not needed and cut up your cards.  You seem like you can't control your spending between your mortgage, jeep, etc.

Answer 6

This so typical of most people now a days.   "Put myself into debt well beyond what I can afford than ask the tax payers to bail them out".  Sell what you can such as the Jeep cut your credit cards, get rid of the Internet and get somebody to watch your children the other 16 hours that you aren't at work and find some part time work.  In other words, "Pay off your debt!!!"

Answer 7

I agree with the other posters...I think you need to start liquidating and selling items, get a parttime job, get rid of the jeep,sell the house,  and put your self on the debt snowball plan. I would get married in a year instead of nine months. This would allow you more time to fix your finances. I dont agree with people calling you stupid. You are just looking for a life line...I have been there,trust me I know it AIN'T EASY. You need a manageable plan.

Answer 8

This is going to be very difficult. Is there any way for you to get a part time job? You can always tutor or do sales on the phone...

Answer 9

You make 2000 a month, have kids, and you thought it wise to buy a vehicle for 450 a month!????!!!

Why declare BK?

Sell the house, sell the jeep, pay the difference.  Don't walk away amd make me pay for your poor decisions.  Clean it up.

If you only make 24K, then you need to get a better job or a second job.

What is your new husband bringing to the table?  You can't clean this up once you get married?!?!?!

Answer 10

Why did you buy all these things. You should watch your money you idiot

Answer 11

To all of the people saying she is stupid about her mortgage being more than she makes: This woman obviously has an adjustable rate mortgage. She cant control the price. Of course it was a mistake to get this, but many people dont realize what they're getting into when they sign on for this.

Stop bashing her. Shes obviously made some bad choices, but she knows this. She dosnt need you all telling her things she already knows. Shes worried about her family. She was only asking for help.

Answer 12

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