Is Chapter 7 right for me?

[ajeffrey]

I have just $4,000 in federal student loan debt, $26,000 in student loan that is in a private collection. I have another $6,000 in debt to old bills. I have some unemployment over payment still due. I am two and a half months late on rent. And my landlord said they will file court order, and as I pay down the debt they will continue the hearing
I made $40,000 for a 3 person household. I own two cars. One for my wife to drive, and one for me; both in my name. I work a labor job, and recently switched employers. The unemployment office was garnishing my wages also.
My wife and daughter have some old debt also. My daughter is a minor, and it is just hospital bills in her name.

Can anyone give me advice? My main goal is to buy a house.

[keepmine]

Probably not since. all of those student loans will survive bk.
Not trying to be negative, but your odds of getting a mortgage are pretty slim. You're trying to support a household of 3 on $40K and you owe as much as you gross. I doubt with your DTI ratio you'd meet any conventional lending criteria.

[TheBajan]

Your student loan debt won't get discharged and neither will the unemployment debt. I know this isn't what you want to hear but Keepmine is right, you are in no position to buy a house. It sounds like the only thing bk would help you with is possibly discharging the $6000 in old debt. Everything else you really need to deal with because it's not going away. I wish I had better news for you... stick around, give us more info, and ask more questions. There a lot of people here who can offer advice to help even outside of bk.

All the best,

The Bajan

[keepsmiling]

What they said.
6k NOT worth filing over. For all we know you may even be collection proof. Doesn't sound like you have much for anyone to take.
Can you look into income based repayment on the student loans? Can you pick up some side jobs so you can get caught up?
I wonder... if they were to garnish you for the student loans... if it might not save you some money. Some find that it's actually cheaper to do it that way.
Oops-- where are my manners?? Welcome!!! Keep reading and posting. You will learn a lot.

[jst4f]

Hard to say without more facts. How much is your wife's and daughter's debt. I agree with above, student loans and unemployment debt will stay. I suggest you get all your financial files together and visit an attorney in your area with a good summary of your situation. These visits are usually free.

[AngelinaCat]

You are too young and have too little real dischargeable debt to file a CH7 now. If you do, it will be at least eight years before you can file again. Instead, you need to see if you can get some odd jobs to pay down those debts and make a savings plan. BK is something you should consider when you have catastrophic debt such as major medical bills, etc.

Do read all the stickies in the CH7 board, and you will learn a lot. My very best wishes go to you and your wife, and welcome to the forum. Just don't pull the trigger yet!

[keepsmiling]

I missed that last little bit about your wife and daughter's bills. Those bills are actually yours, not hers. What are we talking about altogether here? What's happening with those?

[pamkev]

Ditto to what others said above. Welcome to the forums

Pam