Would it be better if I went bankrupt instead of trying to pay off my huge debt?

Question

I am in over my head in debt. Every month I have to "borrow" at least $400 extra dollars just to pay my bills. My husband and I recently separated. He left me to take care of all the bills. Currently I am a 4th grade teacher and make about $39,000 a year. Every debt is in my name (including a car that I got in my name for him, that he now refuses to pay for because someone else put another car in their name for him--his sister). He didn't have a job at the time, so most of the major stuff that we have gotten was in my name when we got married.

I am probably about $15,000 in debt with credit cards; $13,000 in student loans; $3000 in personal loans; $15,000 in car payments (2 cars--1 is almost paid for).

I have no extra income other than the child support ($215 a month for 2 small babies that I raise alone). I use the child support on them instead of on me or bills because that is what it is for.

Am I an idiot for trying to pay all these bills off monthly and have no money extra to buy groceries and gas???Should I just file bankruptcy?

Answer 1

First of all do you own your own home? Is it paid for? Filing for bankruptcy is a big step and only a last resort. I hear people all the time talking about it as if its nothing...but i filed 7 years ago and its still a problem for me. I cant get a mortgage or even a car loan. If your ex has a better job now then i would speak to child support about changing the amount. What you say your getting seems very low to me. They will take into consideration that you are raising the children. Also why not try to sell the one vehicle you dont need? If you can sell it for what you owe on it then that would be great. You should keep the one thats almost paid off since then you will have a clear bill with it. Thats one less payment to pay. You cant file bankruptcy on student loans at all i dont think. You should look into student loan forgiveness if your a teacher there are programs to help with those. Hopefully this helps...but remember only as a last resort would i file it will follow you for a very long time. Having good credit is more important now than its ever been. Good Luck

Answer 2

listen to dave ramsey..

Answer 3

I'd go for bankruptcy. It's your one-time get out of debt free card. No debt, few losses, and in the end, it usually doesn't hurt your credit.

Answer 4

I know your pain.  If you declare bankruptcy you might want to get the things you treasure out of your name so that you can file without assets to sieze.  you poor girl i really do feel bad for you.  keep paying on your car.  the credit card companies have no recorce to collect.  they can sue but just dont pay the judgement.worst theyll do is garnish, andeven then you can go work for cash.  i do everything possible to not repay a debt and you should too

Answer 5

OMG That doesn't add up at all....I feel for ya.  So does that mean you have two cars?  You'd be better selling one and using that money for some bills...I was close to being bankrupt a few years ago but got in touch with my debtors and told them..this is how much I have free to pay my bills and they accepted it.  As it was it took four years to get out of bill h**l but what a feeling when I got there.  $215 a month doesn't sound much for childcare for two children...where I live you'd get that a week from your ex.  That's not enough for anything.  Anyway, good luck.  Is some of that credit card debt his?  He should be paying his share.  Good luck I hope it works out for you.

Answer 6

Go see a bankruptcy attorney.  Most will see you for free the first time.

Answer 7

Oh my word--I hear you, girl. I have three kids and get no child support so count your blessings for that!!!!! Bankruptcy is a quick fix that will take you years to get over. With the debt you have (mine was a little more) it will definitely give you a fresh start. A lawyer can show you how to keep your house and YOUR car---Your ex will have to take over his or give it back-- People say bankruptcy ruins your credit-well, so does DEBT--Cut your loses--get rid of all of it. Hope this helps!!!

Answer 8

I read all these dumb questions on here and usually don't answer, but I really feel for you so i'm going to pass along some helpful advice. You need to go to the library and get a book by Dave Ramsey  called " The complete money makeover".  He teaches you everything you need to know and with good income like you have you should be able to be debt free in a few years.  I read his book about 9 months ago and since then have paid off a lmost all my debt and will have it all paid in 3 months.  But it seems you should sell one of the cars, if you are upside down a few thousand try to get a loan to pay the difference and sell it.  If you have a spare room you should look into getting a roommate for a short period of time which you can go to roommates.com to find someone.  Since you are a teacher you have the summer off, you should pick up a fulltime job during the summer months and possibly a second job to go to after work a few nights a week.  Eat alot of beans, soups and potatoes and take a lunch and coffee with you to work each day.  But I would suggest not to file a bk it will really make things ever harder in the long run, it's a short cut fix but the real fix is to become debt free without filing bk and you can do it trust me, it won't be easy but it will be worth it.  Best of luck and feel like to messege me on here if you would like help with a budget and how to do this. I love teaching folks on this subject as what I learned has helped me so much.