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Is it time to pull the trigger and stop paying/commit to filing (Newbie)

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    Is it time to pull the trigger and stop paying/commit to filing (Newbie)

    I'm an old newbie- I was on the forum over a decade ago when I had my Chapter 7 after losing my job. Last 10 years have been mostly great, I rebuilt my credit and after a few years of behaving, I would say the last 3 years I've been in a cycle of using credit, getting personal loans with intent to pay off a lower interest balance, but then using the credit cards again. This was not great but at least manageable until last year when we lost our rental of over 10 years (Landlord divorcing and needed his house back) and in the worst possible time to look for a rental in our area. We ended up paying twice as much rent, which just went up an additional $200 a month, I spent too much on moving expenses and new furniture and now all my extra money goes to the debts.

    I haven't made a single late payment in 10 years and while I've talked to a lawyer , haven't committed yet and talking to a different one tomorrow. The first lawyer has estimated a payment that is not great but would allow me to keep my car and free up about $650 a month income if that is the end result payment. I have several pets, including a horse (he is of no high value/not an asset but a family member) and having a balance free Care Credit card would need to be replaced by significant savings. So I'm at the point that, if I'm going to do that, I need about 3 months of not paying creditors to get savings together . I'm having a really, really hard time imagining not paying. It makes me feel physically ill and I'm pretty hardy.

    Complicating things is that we plan on moving out of state at the end of the year, so I definitely will need money put aside to move ourselves and the pony. We don't know where yet , just my partner needs to move across the country at some point soon to be nearer his mother who is in poor health. So of course, I'm worried about renting with a fresh BK . My partner has good, not great, credit though we do have gross combined income that is decent but as a pet owner, its hard enough to find pet-friendly rentals, let alone if they think you are a deadbeat. This is probably the Home reason I don't know if I should do it now. Nevada has fairly good BK laws , at least they will allow you to keep significant savings and I also know that I would need to file here for a time anyways even if I do move, I can't file in the new state for a certain time frame. It would not be impossible to travel back here though if the advise was to wait and file later.

    If I continue as I am, I can just barely pay the bills and though I might be able to put 2K away by the end of the year which means I may have to put a significant amount more on my credit for the move. Alternatively, if I go the Chapter 13 route, I should be able to put away 3X that amount , with a 3 month time of not paying anyone but the car people, and if the payment is as expected.

    Currently my debt is about 72K, about 22K is the car (a 2019 Honda so I think it will last the 5 years) , 32k in personal loans and 16k in credit cards. I will make no excuses about the debt- its my fault and it's poor management and stupidity .

    Just putting myself out there- I don't know what is the right choice . I don't know that the first lawyer really went in depth so I may know more after my 2nd lawyer interview tomorrow . Any feedback is appreciated.

    #2
    Sounds like you need a second job or increase the income at the main job with overtime or a promotion to fund the move. In general, you need to be working overtime instead of taking out the plastic. The bankruptcy option seems difficult. You won't qualify for many rentals due to the bankruptcy. You have pets which is a big no-no for many landlords. Depending on where you are moving to, the pony could be a huge problem when finding a rental. You might have a harder time finding a job at the new place with a bankruptcy in your background check depending on the practices of your career field.

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      #3
      Ok, well yes - I have been on the lookout for something I can do on the weekends but there isn't a lot that would fit in well with my current position. I'm working on the raise part, I'm head of my department and make a decent income and already work overtime but, since I'm salary, that doesn't help me.... but yes, the rental thing is probably going to keep me from doing this.

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        #4
        Smokinjbc many credit cards will put you in a more affordable payment plan if you call. You could try this with loans too. I did that before I filed and it worked for a while. I had tax debt that kept growing so that ended up being the best reason to file for me.

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