I’ve been reading through many posts here to get advice about my specific situation, after a while all that information was getting discombobulated so I decided just to lay out my specific situation to get some advice on what my options might be. at the end are a few specific questions. Thanks for any help.
* We have been married for 7 years and have 1 child which after the divorce I will be paying about $1200/mo for support.
* Divorce hasn’t been filed yet but will be soon.
* We have a perfect credit history, never have paid late on anything.
* I have a $700/mo child support payment from a prior marriage
* Two cars with liens, the 1st car we owe $11,500 it’s valued at $11,000 on the 2nd car we owe $14,000 and it’s valued at $12,000
* Total payment for both cars is $720/mo
* We do not own a home, we rent for $1250/mo
* We have about $20,000 worth of loan and CC debt – DMP payment of $980/mo
* She has about $15,000 worth of Student loan debt – payment is $350/mo
* Day Care expenses are $705/mo
* General Bills ie… Power, insurance, phone, renters ins, and etc… run about $500/mo
* Food, Diapers, Formula, Gas, estimated at $600/mo
We entered a DMP through CCCS a couple years ago and have paid off about $11,000 worth of debt since we started.
As with most DMP’s that I have heard about by the time we entered it was probably too late and we were barely able to make the payment. Now my wife’s student loans have come due which makes it impossible to make the payment on time and soon all associated debts with it will start to report as being late.
Car #2 died on Thanksgiving day and the repair cost is at $4200 that if I pay will throw all the other bills that much further behind.
Recap….
We have $7005/mo in expenses
Our bring home pay after taxes and insurance is $5906/mo
So we are bringing in $1099 less than what our expenses are each month.
I do not care about my credit rating at this point, living without all this stress is much more important to me. Financial stress was a large contributor to my divorce.
My questions are:
Does my DMP qualify as the credit counseling the new laws require?
Since I have done it for two years and am unable to make payments will that help me in BK court?
Should I continue to pay my creditors when I know that I can’t keep up for much longer and eventually will have negative credit strikes anyway?
Should I look into filing bankruptcy?
Since I don’t have any real assets what BK should I look at, 7 or 13?
Who shot J.R?
Thanks for any help possible.

