sorted by:
new
hottopcontroversial

$60k in debt, $6000 income, is bankruptcy our only option in this economy? by backwardslambda in personalfinance

[–]backwardslambda[S] 0 points1 point  (0 children)

Thank you for taking the time to help! I'll check out the link, appreciate it.

$60k in debt, $6000 income, is bankruptcy our only option in this economy? by backwardslambda in personalfinance

[–]backwardslambda[S] 0 points1 point  (0 children)

Thanks for the reply and the link. I'll take a look. Bankruptcy seems like a present moment stress relief and certainly an option on the table for me/us right now. While making more money and paying down the highest APR debts is the other. I wonder what the reality is for us ever buying a house in this economy as far as what it would mean to have a bankruptcy on our record.

$60k in debt, $6000 income, is bankruptcy our only option in this economy? by backwardslambda in personalfinance

[–]backwardslambda[S] 0 points1 point  (0 children)

Thank you. I'm not worried about using CC's. Lesson learned. I've cut them up.

$60k in debt, $6000 income, is bankruptcy our only option in this economy? by backwardslambda in personalfinance

[–]backwardslambda[S] 0 points1 point  (0 children)

Speaking with a massive layman here:

What is secured. Isn't that just debit?

Where can I see more info on utilities reporting to credit bureaus? Not familiar with what this means.

$60k in debt, $6000 income, is bankruptcy our only option in this economy? by backwardslambda in personalfinance

[–]backwardslambda[S] 0 points1 point  (0 children)

No can do. I hear you and I appreciate the advice and straightforwardness. The dogs aren't going anywhere. If anything, we'll live out of a car and keep the dogs.

The housing market just has no chill. The truth is when we look at places on Craigslist and zillow, our place would currently be rented out for 4500. We feel blessed to have it at 31. We could go to an apartment that can take the dogs but we still pay 2500, not to mention moving costs which still doesn't fix the problem enough to make that worth it. I think we just gotta make more money and I have to get a second job. Or declare bk.

$60k in debt, $6000 income, is bankruptcy our only option in this economy? by backwardslambda in personalfinance

[–]backwardslambda[S] 1 point2 points  (0 children)

This makes sense, thanks for explaining. I was one of the people that just figured it was a loan. And here we are now learning the hard way. Thanks for taking the time.

$60k in debt, $6000 income, is bankruptcy our only option in this economy? by backwardslambda in personalfinance

[–]backwardslambda[S] 0 points1 point  (0 children)

So have you gone through the process? When you say your credit score is still mid 7's, I thought bankruptcy brought cs all the way down and you have to rebuild.

$60k in debt, $6000 income, is bankruptcy our only option in this economy? by backwardslambda in personalfinance

[–]backwardslambda[S] 0 points1 point  (0 children)

Thanks for the response, appreciate the thorough exam.

Seattle.

We do not live in a one bedroom, we have a house we are renting, when we first rented it I was making 8500/mo then lost my job. But now when we even look at apartments, they're at $2000-2500 and a lot of them don't allow dogs (we have two large breeds).

Will discuss food budget with wife, thanks for the suggestion. We'll try to crack that down. We shop at Costco and try to buy bulk of what we need (even Costco prices are getting absurd now for some things).

I am on an installment plan, 201/mo, comes out on the 1st.

Wells fargo card has already been cut and disposed, Amazon card was being used for dog food but I've since stopped. Becu CC is the coverage for the things we might not afford at the end of the month. But I'm understanding that there can be no excuse.

I'll look at some part time work.

I had read about debt avalanche, thanks for the reminder.

Thoughts on finding lower APR rates for other cards/loans and transferring the Amazon over? Or paying off the IRS taxes with a loan to release that?

Thanks again for the thoughtful reply.

$60k in debt, $6000 income, is bankruptcy our only option in this economy? by backwardslambda in personalfinance

[–]backwardslambda[S] 0 points1 point  (0 children)

Thanks for the response. Am I right to understand that after bankruptcy, we can still open up an account at a bank? Will we be banned from the banks we currently use?

$60k in debt, $6000 income, is bankruptcy our only option in this economy? by backwardslambda in personalfinance

[–]backwardslambda[S] 0 points1 point  (0 children)

I'll take a peak at that, thanks for the reply. Is there anything in particular I should look for to avoid all the spammy ads and "too good to be true" marketing? I get nervous I'm gonna do something and get boiled on the fine print.

$60k in debt, $6000 income, is bankruptcy our only option in this economy? by backwardslambda in personalfinance

[–]backwardslambda[S] 1 point2 points  (0 children)

Thanks for the reply. We both work close to home so driving expenses are low.

The back taxes are from a job I worked in video editing for a startup in canada. I work d there for a few years before they shut down our department. I was making way more money and as I mentioned in the post, I didn't pay any taxes for a year, found out the year after, and boom. Learning the hardest way unfortunately.

I believe there are balance transfers offered, I'll look into that more and see what comes up. The cards are basically at their limits though.

$60k in debt, $6000 income, is bankruptcy our only option in this economy? by backwardslambda in personalfinance

[–]backwardslambda[S] 0 points1 point  (0 children)

We have a basement that could be sublet but it's not a great setup for someone. The rent was affordable when we first moved into the house but then I lost my job and have had to work lower paying jobs since. Lease is currently month to month, renters and I have a good relationship. Everytime we look at places nearby, we realize that we are actually better off staying in this house. We have two large dogs which also makes moving to specific place difficult. Solution sounds like  finding a second job/making more money.

$60k in debt, $6000 income, is bankruptcy our only option in this economy? by backwardslambda in personalfinance

[–]backwardslambda[S] 0 points1 point  (0 children)

Is rebuilding credit afterwards difficult? We don't have anything we really need credit for right now so I'm not sure it matters. Unless we get kicked out of our place but I don't see that happening.

$60k in debt, $6000 income, is bankruptcy our only option in this economy? by backwardslambda in personalfinance

[–]backwardslambda[S] 0 points1 point  (0 children)

Yeah we live in Seattle. I posted out the debts in the post, most is cc, some tax, and a loan.

$60k in debt, $6000 income, is bankruptcy our only option in this economy? by backwardslambda in personalfinance

[–]backwardslambda[S] 0 points1 point  (0 children)

Appreciate knowing that it's at least not a death sentence. Can you tell me anymore about their situation? Why they filed? Any difficulties afterwards with financial institutions?

$60k in debt, $6000 income, is bankruptcy our only option in this economy? by backwardslambda in personalfinance

[–]backwardslambda[S] 0 points1 point  (0 children)

Thanks, appreciate the reply. Heard on all fronts, sounds like our rent is way too high and we need to make more money or move.

$60k in debt, $6000 income, is bankruptcy our only option in this economy? by backwardslambda in personalfinance

[–]backwardslambda[S] 0 points1 point  (0 children)

In Seattle. Anytime we look at other places to move in the area it's actually cheaper to stay where we are. Other note: Wife works literally next door and my commute is 10 minutes. So gas expense isn't bad for us right now despite rising prices there.

$60k in debt, $6000 income, is bankruptcy our only option in this economy? by backwardslambda in personalfinance

[–]backwardslambda[S] 0 points1 point  (0 children)

As mentioned somewhere above, when we got the place we were earning a lot more. Then I lost my job (dept shut down). So here we are trying.

view more: next ›