Hello,
I am a 46yr old with a wife and three kids. The current economic mess has put severe strains on my finances and now I believe I'm in a hole in which I cant get out. No matter how much expense cuts i make, im severely in the red.
Here's my case. (btw, thank you in advance for your help).
- My wife and I make about $80,000 a yr.
- I have three kids. (1 in college (duke), 1 at a community college, and a 7yr old)
- My tuition contribution, even after financial aid, is about $990/month
- I bought a house in 2005 for $400,000 but now its worth $300,000 (I live in FL). The problem gets worse, in 2006, my home was briefly worth $480,000 and due to unexpected car accident, i had to pull $70,000 in equity from my home
- Thus now I have a mortgage/home loan for $470,000 and now I am $170,000 under. The interest rate will adjust in 1yr
- I have two cars and together the payment is about $1700
- Insurance (for my two kids, my wife, and myself) = $1000/month
- Mortgage is $3600/month
- Utility is $ 500
- Phone (cellphones included): $240/month
- Food/Clothes/other vital living expenses (gas and etc): $2800
- Health Insurance for the entire family: $900
- I owe about $30,000 on my first car and $25,000 on my second
- I have $7000 in credit card debt
- My 7yr old private school tuition: $12,000/yr (binded by contract)
- Other expenses for my three kids and wife: $1000
As you can see, I have mountain of debt, thanks to the housing bubble burst and other expenses. Due to the slowing economy, combined avg. monthly income for both my wife and I has come down from $125,000 to $80,000.
Thus my option is very limited at this point and it seems filing for bankruptcy would be the only way out of this financial disaster.
You may question why my 7yr old is at a private school at times like this. And sadly it's due to the fact that my son has learning disabilities. For years I've been sending my son to a private school because I believe he would receive a better care in a private institution than a public school. Unfortunately the school makes parents sign a full year binding contract that holds liable for all $12,000 whether my son attends or not at this point. And it only makes bankruptcy or moving out of state the only two exceptions.
So the question is... Would I qualify for bankruptcy? What is the first step? What should I do?
Please, I need many sincere advice as possible. I really appreciate all your help and you have no idea how much your words (insights) mean to me right now.
Thank you,
John.
I am a 46yr old with a wife and three kids. The current economic mess has put severe strains on my finances and now I believe I'm in a hole in which I cant get out. No matter how much expense cuts i make, im severely in the red.
Here's my case. (btw, thank you in advance for your help).
- My wife and I make about $80,000 a yr.
- I have three kids. (1 in college (duke), 1 at a community college, and a 7yr old)
- My tuition contribution, even after financial aid, is about $990/month
- I bought a house in 2005 for $400,000 but now its worth $300,000 (I live in FL). The problem gets worse, in 2006, my home was briefly worth $480,000 and due to unexpected car accident, i had to pull $70,000 in equity from my home
- Thus now I have a mortgage/home loan for $470,000 and now I am $170,000 under. The interest rate will adjust in 1yr
- I have two cars and together the payment is about $1700
- Insurance (for my two kids, my wife, and myself) = $1000/month
- Mortgage is $3600/month
- Utility is $ 500
- Phone (cellphones included): $240/month
- Food/Clothes/other vital living expenses (gas and etc): $2800
- Health Insurance for the entire family: $900
- I owe about $30,000 on my first car and $25,000 on my second
- I have $7000 in credit card debt
- My 7yr old private school tuition: $12,000/yr (binded by contract)
- Other expenses for my three kids and wife: $1000
As you can see, I have mountain of debt, thanks to the housing bubble burst and other expenses. Due to the slowing economy, combined avg. monthly income for both my wife and I has come down from $125,000 to $80,000.
Thus my option is very limited at this point and it seems filing for bankruptcy would be the only way out of this financial disaster.
You may question why my 7yr old is at a private school at times like this. And sadly it's due to the fact that my son has learning disabilities. For years I've been sending my son to a private school because I believe he would receive a better care in a private institution than a public school. Unfortunately the school makes parents sign a full year binding contract that holds liable for all $12,000 whether my son attends or not at this point. And it only makes bankruptcy or moving out of state the only two exceptions.
So the question is... Would I qualify for bankruptcy? What is the first step? What should I do?
Please, I need many sincere advice as possible. I really appreciate all your help and you have no idea how much your words (insights) mean to me right now.
Thank you,
John.
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