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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]You are thinking Op would do chapter 7 but I think chapter 13 is going to be much better if she wants to keep her car, retirement etc. chapter 13 is reorganization of debt and you still end up paying some of the debt including CC. Creditors have gone smart about it and it’s not as easy as it looks. Dealing with lawyers and paying them is another concern. [/quote]

Chapter 7 is fine for OP. She has almost no assets. No house, I’m sure no savings or investments, no expensive art or musical instruments.

If she sells the car and buys something cheap for cash she will be fine there too.  I think about a $5000 worth of car equity will be exempt from consideration if you file a chapter 7 bankruptcy.

All you guys going on and on about how bad a chapter 7 bankruptcy is? I think you’re approaching it from your own mentality where you do have assets to protect, where you have a house you wanna keep. You probably have savings in retirement that you could use to pay off debt. You just are having trouble paying the debt. You may be younger, married, with higher income and less debt.

Sure, in that case restructuring the debt and working out payment plans, buckling down for a few years makes sense.

OP’s situation is very different. Her earning potential is low in the future unless she goes back to school.

Her health is poor, at 42. It’s not gonna get better. (“lose weight “is not very useful or actionable advice right now.)

She has very little to lose in filing for bankruptcy, section 7. She has no assets that she’s gonna lose. The only thing she’s gonna lose is an ability to borrow more money for several years. But she’s not supposed to be borrowing money anyway right? The biggest concern is if it impacts her ability to rent an apartment. But she’s a single child free adult. She can handle a little instability in her living situation. It’s not like she needs a place for her little kids to live. There’s always someone who will rent you a room and you can deal with a lot for just a year or two until you find yourself back on your feet.

And someone asked why it’s so important for somebody to buy a house or a condo? That’s because a key to retirement is having a paid for housing situation, a pension hopefully, Social Security, hopefully and a nest egg to give you some more income in retirement sure if you have a great pension and a great Social Security Benefit, and great retirement savings of your own, a paid off house or condo is less important than.

But either way, if OP spends the next 5 to 7 years, trying to pay down this debt that is equal to her current income, she’s going to end up starting her fifties with no down payment for a mortgage, no significant retirement funds started, and no ability to earn more income in a less physically demanding job. There’s literally nothing of benefit to her if she doesn’t discharge the debt.
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Before advising OP to file for bankruptcy look at the numbers.  All she needs is to work with a debt management non profit to negotiate a 10% interest rate on her credit cards. If she does that she can pay off her debt in 2-3 years while keeping her apartment and car instead of renting a room from a stranger and driving a beater per your scenario [/quote]

This---be responsible, find a good debt management company and reduce those sky high interest rates.  Then adjust your lifestyle, work more (or work more smartly) and pay off the debt.  Yes it won't be pretty, but she got herself into this mess by living above her means (way above) and now needs to deal with her choices.

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+1000

Yes she created the debt.  She needs to pay it off

And yes it won't be easy or fun.  It's not supposed to be easy.  She created a mess and as an adult you have to deal with it [/quote]

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