Things I should be considering?

[Namaste]

I've come to terms with the fact that I need to file for bankruptcy. Okay, maybe not...that was really hard to just type out. I need to do this.

Here are the facts:
I have a (rental) house going into foreclosure that there is no equity in.
I have $60k in student loans
$60k in credit card debt trying to keep the damn rental afloat.

I suffer from serious depression (been hospitalized twice.) It's lead to a series of terrible and impulsive decisions. I am on the right meds now, and trying to turn my life around. I feel like I can see clearly for the first time in my life.

I make around $42k before taxes. I own my car (worth about $5k), which I'm trying to sell, as it now has $3k it needs in repairs. I have less than $1k in savings and checking.

I am going into self-preservation mode, and trying to be as strategic about this as possible.

I need a different car. I really don't want to ever have debt again, and don't really want to lease one. If I were to get another one, I'd pay cash (from the sale of my current car, plus whatever I can save).

I'd like to qualify for Ch 7. I've heard about the "means" test, and would like to see what I'd need to do to qualify.

Thoughts? Advice?
Thank you in advance. ...It feels so, so good to start dealing with things.

[LadyInTheRed]

Median income for a one person household in Michigan is $44,703. So, it sounds like you pass the means test without having to even complete the whole thing.

I would finance a car before leasing one. Leasing is usually only a good financial decision if you are able to write the lease off as a business expense. You could stop paying your credit cards and save enough money before filing to buy another car and pay attorney fees. If you are going to pay cash, find out your state's vehicle exemption before you buy.

Make appointments for consultations with a couple of BK attorneys. Most give free consultations.