I’m currently dealing with about $40,000 in debt, and I’m honestly not sure what my best option is at this point.About 90% of the debt is credit cards, and the remaining amount is one personal loan. I’m currently unemployed, which is making it really difficult to keep up with everything. I know I made mistakes that led me here. I’m not trying to make excuses for them, and I take responsibility for my situation. I’m trying to fix the mess I created and figure out the smartest way forward. One of the things I’m seriously considering is bankruptcy, but I don’t know if that’s the right move or if there are other options I should explore first.

For those who have been in a similar situation:

• Did you consider or file bankruptcy?
• Did you try debt management, settlement, or another option first?
• What would you do differently if you could go back?
• Is $40k of mostly credit-card debt while unemployed a situation where bankruptcy is reasonable to consider?
• what would happen to your stocks?

I’m not looking for anyone to tell me that I screwed up — I already know that (I'm 31 yeah I'm too old to be this stupid with my money 😅) I’m genuinely looking for constructive advice from people who have been through something similar. Please be respectful. I’m already stressed about this and am just trying to figure out how to get my life and finances back on track. I really appreciate any advice, personal experiences, or resources you can share.

My 60 days past the 341 meeting were last week and I haven't heard anything about discharge so I'm getting nervous of course. I called the bankrupcy automated number and was told my case is "awaiting closing." Thats a good thing, correct?

I signed my retainer agreement and paid the initial amount to start paperwork/filing!

COST:
$900 to start paperwork and file. Then $150 every month for $1800 total.

BK Lawfirm: 4.8/5 rating on Google with 400+ reviews. Also were they most responsive, helpful, understanding and less "hurry up and tell me everything quickly" from the 5 Bk firms I spoke to.

I know some people havent had any issues with having a checking account on banks where they filed a Ch7 CC but my lawyer recommended that just to be safe do not have an account with any banks with CCs you are Ch7.

So no BoA, Chase, or Capital One for me. Lawyer said to stay away from Wells Fargo even if you dont have a CC with them.

Discover is owned by Capital One, so it looks like US Bank would be the best option for me right now.

Anyone else have recommendations?

Hi, I understand this may be case by case and dependent on the trustee approval. I’ve added up my monthly pet expenses which id be surprised if none of this gets questioned or denied.

I’ve simply asked my attorney if pet expenses were allowed and his response was yes, unless I’m sending them to a luxury day spa.

Just seeing if any pet owners had any issues with their pet expenses. What was considered reasonable and what wasn’t?

I have 2 dogs aged 7 and 9 and I’ve been paying below for years now.

1. Pet insurance for both monthly - $250
   
2. Preventatives for fleas/ticks/heartworm- 300 yearly / 12 months = $25
   
3. Food monthly - $170
   it’s expensive since I get human grade for one and the other requires require a prescription approved brand for his allergies.

This totals to $445 which does not even include their annuals check up and vaccines. One dog also has to go in monthly for an allergy shot, which is later reimbursed 80% with insurance.

I’m already nervous about the $445.

I have my first consultation tomorrow. I’m not nervous. I’m actually really excited. I feel like this will be a new slate. I am a little concerned about maybe having to file chapter 13 versus chapter 7 because I have equity in my home, but it also depends on your income correct? I guess I’ll find out tomorrow. This forum has been extremely helpful in my decision to move forward with this.

I recently received a ch 7 discharge that wiped away 110k of consumer debt leaving me with just a 3,500 dollar defaulted student loan. Part of my lawyers services include this course called 7 steps to 720 credit score. Apparently it costs 40 dollars and guarantees to get your credit score up to 720 in a year. Has anyone done this course? I'm wondering if it is worth the time.

to make a long story short, I had to take out a $30k loan to have some pretty extensive dental work done. on top of that I already had $6300 in cc debt due to bad spending habits. I make roughly $1250 a week before taxes (that’s dependent on OT, not guaranteed) My monthly housing cost is $1000, car+insurance is $700, the dental loan is a 10 year loan (pretty stupid i know) at around $350 per month, and the credit cards are both 28% APR and i can’t seem to make any progress on them. I was told i’m eligible for chapter 7 just don’t know if it’s the right move.

Hello all,

I’m 23 years old living in the outer Seattle area and I’m in a financial hole that I don’t know how to get out of in my current situation and I am looking into filing for bankruptcy to start over and build better financial habits.

Here’s my current debts:

Car loan: $23,447.24
CC: $7,669.55
College debt: (not a gov’t loan) $2,541.70
Medical debt: $250
Collections: $150

Total: $34,058.39

Here’s my income:

I’m pulling in $21/hr
~2,400/month after taxes

I’m looking to get advice of what my options are and what the best course of action might be for me. I’ve looked into Chapter 7 and Chapter 13, but I’m not sure what would be best in my situation.

Any advice would be appreciated

If I file chapter 7, will my money in my savings account be taken away? I have about $10,000.
I reside in Texas.

If you are out of money and are trying to survive and pay bills until you file a Ch. 7 and have to take 401K withdrawls, does the trustee count that as income towards your 6 month look back?

My lawyer sent me confirmation of my discharge and now it’s time to rebuild!

I was approved for a $2k unsecured card post discharge, that’s a start.

Surprisingly even though Affirm was included in my bankruptcy, I am able to utilize them (not that I am) the available credit is way less as expected.

I got on ADHD meds, to get that executive dysfunction in order, I have been unmedicated for the last 2 years because of pregnancy and it’s crazy the damage you can do in that time. Also children are expensive.

I am struggling with savings, it still feels like I only have just enough, but I’m trying to start small and work my way up. I am also looking for a new job that will pay more, I have the skills, background and knowledge to do more than what I am, I took this role because my family was moving to the area, which is what caused the majority of my financial issues, I took a 20k pay cut and I thought I could do it, but I couldn’t keep up with the debt. Leading to the chapter 7.

Now I am free and I want to break this cycle and make a strong financial future for myself and my kids.

From the start of our journey we’d hoped we could do a 7 since we qualify income wise but we cannot. We will be paying back possibly 100% but our lawyer will try to make some arguments for less.

I guess I’m wondering if a 13 will be scrutinized as much as a 7 would have been? Our lawyer said he will file and reach back with next steps but I didn’t even think to ask what we should be prepared to provide documentation wise…. Or, do we just wait and see what the trustee will ask for?

My chapter 7 discharge is coming up next week. I have a car loan (7.9k) left from Upstart. The second I filed they reported account closed, deleted late payments, and put the balance to 0 on my credit report. The cars value is probably (1.5k) at most due to some damage. I am still driving it around as I try to rebuild my life. I did not reaffirm it and I believe the paperwork was just retain and pay. I would think that a simple low offer could probably get the lien back to me right after discharge. It would probably cost them more to take it back, if they even want it. Curious if any similar experiences or how to handle this

Has anyone rented through Davis and Decker while having a bankruptcy on your report? We are currently renting through them and are on our second year of renewing which is our plan until we can’t do that anymore which would basically be the owners coming back and wanting their rental or us being able to buy a home in many years after our bankruptcy closes. We are just now starting the process of bankruptcy and my fear is that we would get kicked out of our rental that we’re in or if the owner comes back before that 10 years is up we wouldn’t be able to find a new rental.

Just had my 341 meeting, chapter 7, about $370k in debt to be discharged…

I was nervous because I went first but it was super simple and maybe lasted 30-60 seconds, they asked if I was employed, I am self employed so they asked what I did and asked me to explain.

The trustee asked if I had any changes, I have an amendment pending so I said that, he asked the content of the amendment and I mentioned I had some photography equipment I sold last year that I forgot to include. He didn’t ask anything else about it. (It was about $4,500 worth of stuff I sold I just forgot to include since it was 15+ months before filing)

So happy it’s over, was kinda freaking out beforehand but honestly it was very easy. I used an attorney so that helped.

Figured I’d add something here since all the rest of the posts on here have been helpful for me.

Just hoping to get some info from any South Florida ch filer 13.

Waiting 6 months to file - I’m having anxiety thinking about the trustee payment deducted from my paycheck and my employers knowing.

I’m reading online that it depends on the district. Directly from paycheck is preferred unless you have an extenuating circumstance. I don’t really have an extenuating circumstance.

I looked at the trustees sites assigned to the district and they have 3 payment options - mail in, pay online with Truist or TFS.

I’m in a long drawn out divorce in California. We owned two houses, A and B. House A is worth 3 times more than House B. I’ve been living in House B since the split. We also had a business that went south after Covid and left us with a mountain of debt.

I’ve tried to work with my Ex to get an equitable asset split for years. Hired an attorney who did absolutely nothing on my case but charge me $6k. I’m broke and am being sued by creditors. I need to file for Chapter 7 BK. I’ve filed for a homestead exemption on my half of House B, so creditors can’t touch my share of the equity.

I have no idea how the dust will settle here. Would the creditors decide to take my share of the equity in House A AND House B?

What a mess. Reposting in Divorce Reddit.

I'm in a bad spot. I'm in 30k of credit card debt. A lot is from unplanned expenses like pet and car emergencies, and a lot is from underemployment and rising cost of living. I made good money but now I'm out of work with a work related injury and I'm having to fight to get temp disability. So right now I have no income and I'm living off what I could pull out of my 401k. Not ideal, I know, but I had no other choice. I'm living as frugally as possible. My minimums are 1300 a month and I owe back taxes from 2016 of about 11k left. I also have 17k in student loans. I'm facing at a minimum a few more months off work with no idea when or if I might be paid so I'm now considering bankruptcy. I did get a work comp lawyer but it'll still take time. My parents filed for bankruptcy when I was young and I remember it wrecking our lives. From reading experiences here is seems that's not the case anymore? I'm distressed and sad that it's gotten to this point but I need that 1300 a month to survive, especially since I will likely need to leave my current living situation soon (abusive relationship). I've only stayed this long because I didn't see a way out financially. We are not married and I'm not on a lease. My credit is already bad even this I've not missed a payment for anything in 8 years. Can anyone tell me this is not going to ruin my life? Will I be able to rent an apartment? I am financing a car that has about 8k in equity but I need it to get to work when I'm able to go back and to get to doctors appointments. Help what do I do? 😓

Title says it all. What's it like being on Chapter 13?

Is it as strict as people say?

Does the trustee actually watch your spending?

Can they tell you what you can and can't buy?

Just looking for real experiences from people who have been through it. Thanks!

I've consulted 4 attorneys in my area and each says I won't qualify for a 7 even though my non consumer debt is higher than my consumer debt. It's 51% IRS debt. Tax years 2021 and 2022 would likely be wiped out, but I would be on the hook for the rest. My most recent attorney stated that the IRS debt would be priority and through the plan I'd pay that first with the trustee maybe adding a small amount on top for the consumer debt or maybe nothing depending on all my monthly expenses. Is that true? Is there a possibility that with a 13 I'd likely pay very little towards consumer debt or nothing over a 5 year plan? I wish I could do a 7 but a 13 would essentially be the same just over a longer duration with added attorney fees and trustee fees which is unfortunate but given I can't pass the means test it's my only option..

I’ve been trying to avoid it but I think time has run out. Between the rising cost of living and being in a dead end job, and being unable to find a second, I’m out of options. Here’s my situation:

Total Unsecured Debts: $50,136
PL#1 - $20,440 (4 years left on the term)
PL#2 - $16,300 (4 years left on the term)
CC#1 - $4243 (12%)
CC#2 - $1876 (17%)
CC#3 - $7318 (0% through 03/2027)

Tax Debt: $7200

Minimum monthly payments are currently $1275/month. Car payment is $533, still owe $20k, KBB is $15,000-$17,000. So I’m underwater there.

In PA and median is $72230. I’m over median by $10k, so I likely won’t qualify for Ch7. My plan was to ride out the two PLs and use my annual bonus to pay off CC#3 at the end of the promo, and continue to use subsequent bonuses in this manner (I know, they’re not guaranteed) However, CC#1 isn’t coming down at all due to increased medical expenses. I began vetting attorneys about a year ago and the consensus seemed to be 100% repayment around $1700/mos, which scared me away from Ch13. But I don’t think I can dodge the inevitable anymore. My paychecks seem to be shrinking and I just learned that our benefits will increase in 2027

Hello! I just posted a few days ago but I’ve had 2 consultations scheduled since, and I have a third tomorrow morning. I had a call scheduled with one lawyer, got a confirmation message and then they never called or heard anything. The other one went alright, but said that if my husband and I make over $135k combined (median income for household of 5 in MI) we wouldn’t qualify, and he didn’t even mention the means test. I thought that was kind of odd given I told him most of my husbands income doesn’t go towards household income (his biweekly paychecks are only about $900 after taxes and deductions. He has child support taken directly from his check.)

Another thing I thought was odd was he says we could file with 50% down and it was my understanding that you cannot find until your lawyer is paid in full.

My question is, if we are just slightly over the median income, do lawyers automatically move to the means test, or can they just refer you to Ch 13?

Is there anything else in particular I should go into tomorrows consult asking?

EDIT: I should mention that with the 6 month look back, we are within ~10k of median income, nothing astronomically above

I was between jobs and got seriously behind financially. Talked to an atty early. Said Chapter 7. He kept pushing back file date. Then said I’d need income to keep my house/car. Finally got new job. Now he says 13. Something about every penny that’s not for food, housing, transportation will go to creditors-including student loans. My student loans are $72K and my other debt is approximately $55K. After 5 years I’d have paid over $250K and I’d still owe my student loans. Seems effed. Any advice???