Would like some advice here as I have been running the numbers for days and can't seem to make it work. I have either two choices: file Chap 7 OR somehow, someway pray that I can make ends meet with the credit card payments and eventually pay them off. Bare with me on this because I am only one phone call away from filing and want someone's opinion other than my attorney. I have 34K in credit card debt. Here is what my monthly looks like: 5,000 after taxes takehome 1,000 extra income (not guaranteed...fluctuates from 0 to 1,000...no taxes taken out of it) 2K to 6K per year bonus (not guaranteed) 500/month (fed tax adjustment needed so i break even at end each year vs. owe money....changing allowances now to reflect that) 1700 mortgage 1200 child support 750 alimony (supposed to be 1500 but she's being nice right now) 300 TDSP loan 200 School loan 100 medical 350 food 100 cloths/cleaning/misc 400 utilities 300 auto (ins, gas, maint) 100 life insurance Start of 2003, 400/month divorce settlement Before I even add credit card payments (950/month), I'm already at 0. If I pay what I'm legally supposed to pay for alimony, I'm 750 in the hole. When 2003 hits and I have to pay the 400/month, I'm 1150 in the hole. If the 1K/month income doesn't come in, I'm 2150 in the hole. The only thing to go in the Chap 7 would be the 34K in CC debt. Home and car are exempt. Am I doing the right thing? Am I missing some other alternative? Thanks in advance Rick
I'd make the call. Question is, how are going to live? Even without the cc debt you're at zero and the situation gets worse. I'd ditch that $1700 mortgage as well.
Damn...that sucks dude. Can you request temporary forbearance on the student loan(s)? I don't know what state you are in and child support and alimony laws vary by state and I don't know how many kids that 1200 is for b/c that sounds like a lot for just one kid..but have you checked to see whether you can petition the court for decreased payments on the child support or alimony? Also, I agree that you need to get rid of that mortgage. 1700 is pretty high. Utilities are pretty high too. Again, I don't know where you live but even though renting sucks - even in high rent cities you can get an apartment for 900/month somewhere in town with utilities included. Like someone else posted, even if you take out the cc debt you are still left with 0 at the end of the month. I know that I personally before declaringn Bk would think of ways I could make more money, spend less, sell stuff..etc.
Yeah, the mortgage is big but I would have to fork over about 10 to 15K to cover the real estate fees....one of those i owe more than what it's worth deals because of the home equity loan. I make over 80K a year and it takes up just about all of my time. The child support is in the Ga range of 17-23 % per month for one child. The alimony at 1500 is in the 20% range...I am actually in contempt of court for paying 750 in alimony and if I try to get it reduced, I can go to jail quick. My ex is a good sport about it all...i agreed to the alimony to keep visitation of my son from being less than what it is given our divorce circumstances. The extra 1K per month is flaky at best. I cant' count on it but luckily I have it for now. Maybe I've already made a decision but feel to damn proud to admit to the outcome. Not sure. Thanks for your input. Rick
Well, I gotta say, if you decide to file, you'd better file now before all the bankruptcy laws change. It looks like you are going to have to cut down on a lot of expenses. Even when you do declare bankruptcy and get past your debt, you are still going to have to deal with the fact that you spend $100 a month for cleaning supplies. That's FAR too much.
The 100 is for dry cleaning/clothing. If you ever saw my house you would know I don't buy any cleaning supplies. Rick
I think the BK is good for you. It will take a lot of money to pay the cc debt and then you'll have to spend a lot of time repairing it. If it were me I'd bk.
