Looking for advice after already speaking with an attorney.
I’m 43, married, with about $96k in unsecured debt (cards, loans, collections). Credit is already in the low 500s. Wife would not be filing; she has decent credit.
Income:
– Me: $96k
– Wife: $90k
Assets:
– Condo: joint mortgage, current, want to keep. About $90k equity
– Car loan: current, under my name, want to keep
– No other joint debt
Questions:
– Is Chapter 7 realistic here, or likely Chapter 13 due to income?
– How is home equity treated if only I file (not my wife)?
– If we stay current on the mortgage, does bankruptcy realistically impact her credit?
– Given everything, is bankruptcy the right move vs. debt management plan?
Attorney consult was helpful but I’d like real-world perspectives. Chapter 7 would be about $2,500.
Appreciate any input from people who’ve been in a similar spot.
$96k debt. Does bankruptcy make sense in my situation?
byu/RowanSaturn inpersonalfinance
Posted by RowanSaturn
3 Comments
Can you break down your household net income (assuming no retirement contributions outside of any matching, if applicable…basically, what’s the most you can reasonably take home each month) and expenses (including debt minimums)?
It’d be helpful if you could add more numerical information on the assets and liabilities. Particularly the interest rates charged on each account, and the present values of each asset/liability.
> Attorney consult was helpful but I’d like real-world perspectives.
You can also get a second opinion from another practicing attorney in your area.
Sounds fine to me, go for it. I did it 9 years ago for medical debt. and my credit score is over 805 and I tripled my salary over the years and just put that money into my retirement vs paying the bank.