Show me the way!! May have no other choice but to file......

[gamecockfan4]

The calls and letters come daily and between credit card dept ($23000) and personal loans ($6000) and my income only $52000 and wife not working (3 kids) I cant keep up. I actually quit paying on my credit cards about 8 months ago and am a month behind on my personal loans, 2 months behind on my mortgage and wifes car payment and see no llight at the end of the tunnel. I received a letter from an attorneys office yesterday threatening action on one of the credit cards and am waiting for a letter for my BoA CC that I owe over 17K on.
Should I file Chapter 13? There is no way I can pay this off with even the minimum payments per month.
Advice??

[BNKRPTinNC]

My situation was similar to yours but worse. The best advice I can give is to get some meetings with several attorneys and get their advice. If it comes to the point that there is no option other than to file then pull the trigger. You will be amazed how all the phone calls and letters stop. The stress factor will no longer be pegged to the max and a new lease on your financial life will begin.

Best of luck and you will find that this forum will freely provide plenty of insight.

[lvmilizia]

$52,000 with a family of 5 could you not do chapter 7 instead?

[LadyInTheRed]

$52,000 with a family of 5 could you not do chapter 7 instead?

He probably wants to use Chap 13 to catch up on the mortgage and car payments.

gamecockfan4 , if it is possible to catch up on those before discharge, or even if it's not, a chap 7 may be a much better option. If you can't catch up after 8 months of no credit card payments, then you should probably consider giving up the car or the house or both. Could you make ends meet on your current income without the credit cards and personal loans?

Definitely consult with at least a couple of bankruptcy attorneys. Don't let the calls and letters scare you and don't be talked into paying anything on unsecured debt.

[gamecockfan4]

^^^oh yes without the credit card and personal loan debts I'd be great and perfectly capable of keeping up.
I am consulting with an attorney this week to discuss some options so wish me well!

[bbeagle]

^^^oh yes without the credit card and personal loan debts I'd be great and perfectly capable of keeping up.
I am consulting with an attorney this week to discuss some options so wish me well!

Then why are you behind on your mortgage? You said you haven't paid any credit cards or personal loans recently. Then where has all the money gone? The most important thing is to pay your mortgage.

[gamecockfan4]

I've been paying the personal loan $315 and title loan $360, but quit paying on the credit cards. I got behind on the bills because of medical expenses for my wife and the cost of health insurance for my family went up to over $800 a month. I've gotten the health insurance reduced with a cheaper plan which is saving me about 500 a month but I'm in too deep now and can't get out that's why I need help.

[LadyInTheRed]

I highly recommend you do whatever you can to manage a Chap 7, including letting the car go. If you can't catch up on the mortgage, one option to consider is filing a Chap 13 and making plan payments until the mortgage arrears are paid off, then convert to a Chap 7. Be sure to talk to lawyers about that option.