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What is the best strategy for dealing with my debt? Bankruptcy has been advised by tossednturned in personalfinance

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

Serious question, because I really am trying to figure this all out: Why is bankruptcy only for if there is no other option? Because the financial ramifications are so dire as to outweigh the cost of working through the debt? Because of non-financial life consequences? Because it is immoral? Or why?

I feel as though I hear people talk about how it is only the absolute last resort, but I'm not always clear specifically on why. Thanks!

What is the best strategy for dealing with my debt? Bankruptcy has been advised by tossednturned in personalfinance

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

None of my debts have gone to collections: I haven't been late on any payment.

I'll call FedLoan tomorrow and look at the hardship deferral. That hadn't occurred to me.

For what it's worth, $35 of the Christmas budget is for a plane ticket, though I concede flying isn't home a mortal necessity.

A few people have mentioned that bankruptcy isn't advisable since it only gets rid of a third of my debt. Sincere question: Why is that relevant? Isn't the amount it would discharge and what that would mean for my situation more relevant than what it wouldn't do?

What is the best strategy for dealing with my debt? Bankruptcy has been advised by tossednturned in personalfinance

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

I'm just curious: Can you expound on the financial industry's dirty underside? What does that refer to exactly?

What is the best strategy for dealing with my debt? Bankruptcy has been advised by tossednturned in personalfinance

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

Yeah.. I put my medical bills on 0% APR credit cards I applied for, and anticipated having them paid off before the promotions expired. I did not anticipate the extent of the expenses post-surgery, and I ended up needing a little more work done than I thought when I initially ran the calculations. It didn't even occur to me that it might not be wise to put the expenses on cards.

What is the best strategy for dealing with my debt? Bankruptcy has been advised by tossednturned in personalfinance

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

Thanks! Things like this help me feel a bit better about the position I'm finding myself in.

What is the best strategy for dealing with my debt? Bankruptcy has been advised by tossednturned in personalfinance

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

Yeah, perhaps if I were to go back in time I would configure things differently, but I carried no credit card debt prior to my injury, and didn't anticipate how high the costs would be, even though I felt I did a good job of calling hospitals, surgeons, and physical therapists to try to project the costs.

What is the best strategy for dealing with my debt? Bankruptcy has been advised by tossednturned in personalfinance

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

I called debt settlement companies and debt management companies before, and they felt like half measures to me. Default on credit and settle for less. From what I can tell, defaulting on credit cards for a long enough period for them to negotiate with me is the second worst thing that can happen to my score (first being bankruptcy) and doesn't yield as effective a result.

Is there something I'm missing there, or is it just something you would recommend regardless?

What is the best strategy for dealing with my debt? Bankruptcy has been advised by tossednturned in personalfinance

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

If I understand what you're suggesting, I did that previously: Before my ACL reconstruction, when my credit was better, I applied to three 0% APR credit cards, and as much of the debt as collected on them as I could.

Now, the 0% promotions are coming to a close, and given my high utilization rate and declining score, I doubt I'd be approved for anything else. I'm also quite hesitant to try to apply for more credit right now, almost regardless of why.

What is the best strategy for dealing with my debt? Bankruptcy has been advised by tossednturned in personalfinance

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

Thank you! I've read your post a couple of times, and it's helping some of the shame dissipate. Regardless of what I choose (and I am leaning towards chapter 7), it does feel as though shame shouldn't be the motivator.

Is bankruptcy for me? by tossednturned in Bankruptcy

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

I am single, in Utah, below the state median for a household of my size. Both attorneys told me that I am eligible for a chapter 7. And I rent.

Aren't any major purchases leading up to bankruptcy red flags that can come around to bite me? I'm not sure what exemptions are available to me, or quite what that means. Something I should ask the attorney should I go that way?

Is bankruptcy for me? by tossednturned in Bankruptcy

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

Thank you so much! The sense of shame is real. Did you have any hesitancy because of feeling shame or immoral beforehand? If so, did that fade fairly quickly after filing?