Question Should I look into bankruptcy?

[Llelxon]

Hi,

I am new to the forum and to the possibility of considering bankruptcy. I currently am not behind on my payments, largely because I have used the CC to get through to a time when I get a bonus or something. Well as you can imagine and know that is not good financial planning. So over the years I have progressed in my career and make a decent wage (base about 92K) and an average bonus in the spring around 10k. I can't imagine that I struggle to get by, but do. I am married and we have 4 kids, additionally my mother in law has health issues and moved in with us a few months ago.

We currently have about 60k in unsecured debt, a 1570 first (includes taxes/insurance), 336 second, 280 car payment and one older car paid for. I also have a small student loan and previous child support payment.

Using the mean test calculator online it looks like I pass due to the allowances for expenses. Currently my credit score is around 760. I don't know that I can keep living the way we have. Based on everyones experience do you think I should try to go with a debt management plan or pursue talking with a bk atty?

Thanks

[brokeasajoke]

Your story sounds very similar to mine. I massed a huge amount of debt due to a disabled son. I've got 5 kids (oldest disabled) and make roughly what you do. I had never been late on a payment until 7/2009. I got rate jacked and my minimum payments were raised 1st and 2nd quarter of the year. It was like an avalanche of debt coming due on me. I spoke on and off 1st half of the year with a credit counselor, never did sign on. I was successful in reaching payment agreements with about 1/2 of my lenders. When it became apparent that the other 1/2 weren't willing to work with me, the reality of BK set in. That was around 6/20. I stopped paying right then and filed 7/31.

I had 72K unsecured, salary of 90K (down from 120K last year) and no prospects for bonuses over the next 18 months. I've carried a minimum of 25K in unsecured debt for over 15 years. Credit score of ~725.

My son will turn 18 in January and we are looking at getting him on disability, medicare and all that. The way it's worked out BK was a good decision for us. I am able to actually focus on things in my life that are important now and not just paying the next bill.

Your mileage may vary but don't let the facade of salary/credit score/credit history distort the reality you face. You know that better than any attorney or anyone on a forum. Treat this as a business decision and understand the potential downfalls and upside to your decision, make that decision and plow ahead. That's what we've had to do and it's working out OK for my family.

[DeadManCrawling]

All a matter of perspective.

I made 350k/year until 3 years ago. Then medical disaster struck, destroyed my earning capacity and wrecked my life.

My credit score must have been incredible. I never bothered to check, never used credit, paid cash for everything but maintained a few cards anyway with zero balances.

I had a higher income, but a story that almost matches yours exactly.

Over the 2-3 years of the disaster I lost my income, endured a medical bill beyond any expectations, made some bad choices in medical procedures, and now have my dad-in-law living with us through mid-stage Alzheimers.

Everything I knew dried up and flew away on the wind.

It took a long time to become accustomed to the idea of BK. And disability. I applied last week, after fighting the notion for three years or so.

I simply am not the man I was and am no longer capable of the work I used to do. Or any work, for that matter.

Forget the credit score and the past, at least for now. Look at this as objectively as you can and make a decision to file or not.

You are obviously an intelligent person. I suspect you already know the answer but, like me, are fighting the inevitability. I say get it over with sooner so you can move on quicker.

Credit scores will return. Your debt relief will help you in more ways than financially. The psychological relief will be even greater.

Your family needs you. Your creditors WANT you.

Who will get you in the end?

I hope it is your family, and I hope you make that choice sooner than I did.

Good luck to you and your family. I feel for you and know a little of what you are going through and thinking about.

Best wishes,

-dmc