Reply to Owe 127k; make 190k

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Can you start over with the real numbers and using sentences? Where is the other 100k in debt? Is that 2 in private?

Definitely not bankruptcy[/quote]

Hello I have 127k in debt including 
2 cars ; 1 in repo. 1 with 12500 owed
4800 mortgage total owed 642k.
[b]Tuition ending in June 3800[/b]
[b]29k to irs. on payment plan
5k to VA[/b]
The rest of debt is credit cards, medical, toll bills that I didn’t catch (eg 810 on a $8 toll).
Thank you.
[/quote]

Just so you know, the almost $40K that I have bolded in your response is not dischargeable debt.  That means that [b]even if you declare bankruptcy, you will still owe that money after the bankruptcy.  Your house, car and any other assets will be sold to pay off off the car debts, revolving debt (the CC, medical, toll bills).  Your credit score will plunge, you will not be eligible for any credit cards, you child will no longer qualify for financial aid for either private or college and you will essentially rule out that your child can be accepted by any private school[/b] (because you would be too big a financial risk that you would not be able to pay the tuition).

So, bankruptcy would at best pay off 2/3 of your debt and leave you in a much worse financial situation than you currently are in.  You need to find a different way to resolve the issues.[/quote]
OP should read this carefully three or four times.  Declaring bankruptcy is a horrible idea given those non-dischargeable debts.

As for selling the house, I'm kind of torn.  OP says they owe $642k on a house worth $670k.  With only $28k in equity, OP won't have $30k in proceeds if they sell.  They'd probably have to write a check at settlement.  It might be worth it—$4800 is a lot to pay each month on OP's income—but OP would have to come up with more money to sell that house.  It's kind of a nasty catch-22: OP is in debt in part because a mortgage payment they can't afford, but they may not have the money needed to sell the house.

I wish I had a good answer.  OP, your financial situation is a mess.  But bankruptcy is the absolute last resort.  [/quote]

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