Should I File?

[jjgrady]

Lost job last year, making 100k. Now wife and two kids, all of use living at 150% poverty level. BUT we are doing seemingly ok and everyone has what they "need". My debts all charged off, 1 Repossession, charge off of about 13k. Other debts include a cell phone bill with canceled contracts about 1,500. And various credit cards etc all adding up to about 20,000 debt. All charged off as a loss. I pulled all my reports and most say continued on file until points in 2018. Now this is 5-6 years out and all of these will be "GONE". Should I file a BK and get "rid" of the debt or should I sit tight and wait out the 5 years?

BK last 10yrs ya know....

[AngelinaCat]

How old are you and your wife, and how healthy are you?

Are you paying on any mortgages? How secure are you at your current income level?

I ask these questions because filing BK should be considered like the 'Nuclear Option'. Once you file a CH7, you will not be able to file again, should the need arise, until a full 8 years have passed since your filing. CH13s are a bit different.

If you are reasonably comfortable, and are living on a cash basis for the most part, I suggest waiting.

If you file now, and you both are healthy, should one or both of you have a medical emergency--I certainly hope and pray not--you would not have the option of discharging overwhelming medical debt. If you have been following the news at all this past month, you know that the state of payment method for medical care is undergoing a tremendous upheaval. I am hoping for the best, but I fear the worst.

[jjgrady]

Both Early-Mid 30's. Healthy. Pretty secure at current income level. No mortgage, just rent, which we split.

[AngelinaCat]

Then I suggest you wait and ride it out. Try to make a savings account, and an emergency funds account--these should be two separate things.

Stay with us and keep us posted as to how you are doing.