Question "Enough" debt?

[smm]

Hi everyone, just signed up because... well... I'm in "that" situation.

Small LLC owner (very small, service-based and no assets)
Father of 2

I have about $18,000 in credit card debt (6 cards) and an auto loan with $6,000 owed and same value.
well, we've also racked up about $2000 in other utility bills (electric, gas, water, trash, cell phone, internet)
That's it!

About two months ago it came down to continuing to pay the CCs or bills - I chose the bills.
Then a month ago it came down to paying the bills or feeding my kids. Well, I chose the kids.
Now I can't even pay for the car. Note: I really want to keep the car.

My 2 biggest clients went under, leaving us high & dry with no more than spending cash for food.
We're now living in the in-laws basement, paying nothing, and no real income at all.

Like everyone else, now I'm trying (without luck) to find a 9-5 job to keep feeding the family and hopefully get back on our feet.

My question: is this really enough debt to justify BK?

I feel sort of like a failure, so ready to write it off and start again.
Most of the stories I read are twice my unsecured debt and mortgages as well.
But at the moment, I just can't pay them. And I know they'll get worse.

[keepmine]

Put bk on the backburner for the time being.
While looking for a fulltime job, start seeking out pt/weekend work. Your big problem is not your debt but, lack of income. Is your wife working?
Get your finances straigthened out before you file bk. You don't want to file bk and still not be able to support yourself. What happens if someone gets sick or injured and you have large medical debts and you already played the bk card?

[frogger]

Put bk on the backburner for the time being.
While looking for a fulltime job, start seeking out pt/weekend work. Your big problem is not your debt but, lack of income. Is your wife working?
Get your finances straigthened out before you file bk. You don't want to file bk and still not be able to support yourself. What happens if someone gets sick or injured and you have large medical debts and you already played the bk card?

This is excellent advice.

It's a stressful time, but you can pick back up and start over. Many of us are doing just that.

Good luck.

[lindsay2181]

I think you will get mixed answers. I have about the same if not less debt as you and I too, thought it wasn't "enough" to file. I was told by several different financial advisors that BK was for people with much bigger problems than mine. Finally, more recently, I was advised by a manager at Citifinancial, where I have a loan, that I should maybe look into speaking with an attorney. She whispered to me that she wasn't allowed to say the "b" word, it's her job to offer me another loan with outrageous interest but she couldn't do that b/c she knows that it will only make things worse for me.

In a way I feel lucky...we don't have as much unsecured debt as some here, and no mortgage. But still, we are in over our heads and I think that is what matters. I had to ask myself if I saw our situation improving in the next 2 years? 5 years? 7 years? The answer was no. I honestly don't think we are going to improve our situation dramatically. Right now we are definitely considering BK. Don't have anything for attorney fees at the moment, so we are waiting for income tax return and then will get serious.

But you've taken the first step and come to the right place. You will find a wealth of info and friendly/knowledgeable people here. Sorry you've come here under these circumstances though!