Reply to Owe 127k; make 190k

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]It's not bankruptcy, it's poor financial decisions. [/quote]

+1.

Even if you were to file for bankruptcy, it would not solve your problems since you seem dead-set to continue to make  bad financial decisions.  You live beyond your means, but you contend that you will pay tuition for private high school and college.

First, you are moving to send your child to public school.  That's a good start.  You should sell the house, use the proceeds (if any) to pay off your debt.  Rent, not own.  Despite gaining equity, home ownership is a luxury and a drain on your finances.  Everything from property tax to home maintenance and home care, (replacing appliances, decorations, updates, renovations) is a drain on your finances and your finances are not balanced between your income and your spending.

You should not plan to go back to private until you are living with positive cash flow, e.g. your monthly income exceeds your monthly expenses (including savings, emergency fund, transportation costs, housing and expenses costs, retirement savings) enough that you could save the full cost of annual tuition in less than one year.

You also need to take financial classes to learn how to budget and how to calculate what you can actually afford.
[/quote]

So don’t file and just pay off?[/quote]

Yes.  First, if you file for bankruptcy, you will not be able to afford private and you will be unlikely to be able to get financial aid for your child to attend private HS or college.  Also, there are some types of debt that will not be dischargeable in bankrutcy and then you'll have given up all of your assets, have ruined your credit for the next 7 years and you will still be burdened with some forms of debt.

If OP sells the house, she can use the $30K or so proceeds to pay off the $30 revolving debt that she listed in the OP.  Not sure where the additional $97K of debt is as OP does't write coherently or completely and doesn't seem to want to divulge that.  I am assuming that from the way she's hiding it that the $97K is likely to be in categories that might make them non-dischargeable in bankruptcy and she will lose everything and still have those debts.

But OP needs to sell the house, use the funds to pay off the outstanding debt that she's identified, move to a cheaper area to live, use public schools, and learn to budget and live within her means.  She's one of the millions who are living beyond their means, have little financial understanding of how to balance a household budget so that they live within their means.[/quote]

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