Does Bankruptcy Make Sense for Me
HI -
I'm in NH.
I'm thinking about filing but unsure if I'd "qualify" and if it really makes sense to do so. we hit a bit of a rough patch in 2008 with an expected emergency custody case (which we lost anyway) and racked up a lot of debt because of it, along with other stupid spending habits.
I am the main breadwinner in the family (me, DH, and our preschooler). My DH works but his money covers his child support to his other daughter and savings for household stuff like car repairs, license renewals, pet meds, etc...
I started a very detailed budget system (dave ramsey) in 2009 and I have everything broken up into categories of where my money goes. Each month depending on time of yr (DH doesnt work summers as he is a school bus driver) we have anywhere from $100-400 leftover after all bills are paid (not including old debt, see below).
I have been putting that money aside and slowly paying down the debt we have. So far $12k worth has been paid off (settled about half of it)
I have about $3k in "current debt" - 401k loan, DH's credit card, and OD line of credit that are paid on time every month.
I have about 35-40k in CC debt that hasn't been paid on and I have nowhere enough to pay these off. I'm working smallest to largest but the smallest ones next on list are under the "current" list above so unsure when I could get to paying these off. The smallest old bill started at 5k so no idea what it is with interest by now.
In addition to these debt, I also have student loans which are in forbearance because I'm currently enrolled, but I will of course have to pay them sooner or later. DH also has student loans as well as child support arrears (which he's paying on time per court order but it's a large balance).
All in all the debt, not including any interest from the last year or so, is around $100k. The stuff we cannot discharge is around $60k give or take.
Do they take into consideration the student loan debt that I will have to pay when determining if I can afford to pay everything off? If I stop going to school, I cannot afford to save towards debt and pay school loans.
Also, how does it work with savings? My job is in jeopardy as my company is about to merge so I've actually been holding off paying off or down any debts for a few months just in case I lose my job because I would rather not be homeless if I do. So if I have a few thousand in cash in my checking accounts, will that hurt me? If i withdraw it I'm assuming it would be worse or make me look like I'm hiding something.
Also, I just finally finished paying off my car last year, it's not worth much as it is older with over 150k on it, but I do own it outright (after 5 years of payments lol yay!). We also purchased a 2nd car cash, also an older car. Together they may be worth $3500 max.
We do not own a house, I did a deed in lieu of foreclosure in 2008 so it's gone and we rent.
Everything is in my name except DHs 1 credit card we are trying to keep to improve his credit since mine is shot, his child support and his student loans.
Thoughts? Sorry for the novel but wanted to give enough info to help.
Thx
Re: Does Bankruptcy Make Sense for Me
You give a lot of good information, but missed a crucial piece, how much are you and your husband making together per year gross? This information determines whether you can qualify for a Chapter 7 or if you would have to go for a Chapter 13.
Another thing that popped out at me, why is husband driving a school bus if he has student loans to pay and presumptively some sort of degree?
Re: Does Bankruptcy Make Sense for Me
Oh, we are making around $65k a year together.
DH does not have a degree, he took a year or so of college classes many years ago before he even graduated high school. Long story but his classes were useless and it was before he was diagnosed with a learning disorder. He does plan to go back to become an electrician but until then all he can really get is warehouse and bus driving pays the same as that but he works 1/4 of the hours for the same pay and he can bring my daughter along with himif needed.
Re: Does Bankruptcy Make Sense for Me
Sounds like a Chapter 7 might be a good option for you, you should discuss it with a local bankruptcy attorney.