Should I file...My situation.

[Archaic2021]

I'm gonna try and keep this short and sweet but between trying to help my Family (sister) and job being cutback I am starting to get behind.

Two years ago I was making 65k a year and spending way to much. Although I did manage to save up about 17k.

I owe 69200 in securred debts. Car, and boat. Both of which I am upside down on and cannot sell for what they are worth...I would need around 5k on each one to do a quick sell. I also have around 19,000 in unseccured debt. CC's and loan.

IN the last year between medical expenses and helping my sister and her kids go threw a nasty divorce I have wiped out my savings. Also in the last two years my income has went down to 40k a year.

The thing is right now I am current on everything but as of End of Day today I will be late on payments..30 days late. I'm broke..I have 1.25 in my savings account. I have been trying to sell my truck for months but to no avail.

Also finding a part time job that works around my main job is not working out.

I am 26 years old and in a way I feel like if I file now for chapter 7. (which the lawyer told me I could do) I would screw up my life. BUT...if I don't..I'm gonna have to try and make it by and struggle. Which btw...our hours will be cut again in the first quater of 2015.

I feel like this could be a fresh start for me to step back and learn to manage money better and get a solid foundation under me. I don't own land or a home..and I would have to surrender my vehicle in the bankruptcy.

[LadyInTheRed]

I don't own land or a home..and I would have to surrender my vehicle in the bankruptcy.

I'm confused. In your other thread you said:

I own my own mobile home that is payed for and the land.

Do you own your home and land or not? That is a very important fact.

You also mentioned a bike in your other thread. Is there a loan on that?

Are you prepared to give up your boat?

What makes you think filing BK will screw up your life?

BUT...if I don't..I'm gonna have to try and make it by and struggle

Sometimes we have to struggle in life. The question is whether it is reasonable for you to struggle to pay off the debt without BK. That's something only you can decide. What have you done beside trying to sell your car and boat? Have you created a budget and tried to live within your means? What does your budget look like without making payments on $69,200 in secured debt? I bet those monthly payments are pretty high. Would a lower car payment and no boat payment help your situation and allow you to pay more than minimum payments on that $19K? If not, BK is probably the right choice. If you can make progress on paying the unsecured debt, you have another option.

You could stop paying on your car and boat and let the lenders foreclose. (If you can't do without a car, you may want to buy a more modest car first before you become 30 days late on any payments, or use what you save on car and boat payments to buy a beater out right). Then wait to see if the lenders sue you for a deficiency. They might not. In the mean time, live on a budget and start paying down the unsecured debt. If the secured creditors do sue you for a deficiency, you can decide whether you need to file BK at that time.

The downside to trying to deal with your debt outside of BK is that if you are not successful, you will have put more money towards debt and eventually file BK anyway. So, you need to look at your budget without that secured debt and decide if you can live within your means and pay down the unsecured debt.

I am not one to discourage somebody from filing BK. But, as I said in your other thread, I get the sense you are looking for the easy way out. Bankruptcy won't screw up your life. But, it should be a last resort after all other reasonable options are explored. What if you file BK now and have your own medical expenses a couple of years from now? You won't be able to file BK again for 8 years.