Filing for Chapter 7?

[Tdawg422]

Okay I have 35k in CC debt over 3 cards. 16k, 13k, 4k

I was recently in fine financial health till a month ago. I lost about 65k in the stock market last month and now do not have the means to pay off that 35k debt.

I currently have 5k in my bank account, and 1500 in my trading account. I also have about 11.5k in my Roth IRA and about 5k in 401K

I make 40k at my job which is below the the medium income for NY. My living costs are low because I live with my parents now so I can put much of my money toward paying my Debt if I choose to pay it off. Rough math would take me about 1.5 years to pay it off, maybe as quick as a year.

I'm currently single do have a long term GF that we are planning to get engaged and married soon. I don't think that part should chance my choice to declare BK or not tho.

I work for an insurance company(AIG), and I've read that getting a new job in the finance field might be harder after declaring BK. I'm not sure how much that would relate to insurance as it tied to finance but no in terms of handling money directly or making payments, at least not in my current position, but future positions I'm not sure about.

Currently I feel my job is stable, but working for AIG I know that job security can turn any given day.

I'm not even sure if it is worth it do declare chapter 7, but if I the 6.5k I have saved do they take that as well?

The pro side I see for declaring chapter 7 is it would wipe out the 35k debt, maybe take 6.5k so it would clear up about 28k which would take realistically 2 years worth of savings.

The con side I see is mostly with the possible problems of seeing a future job. I wouldn't be buying a house or a Car within a few years if I don't declare chapter 7 since I wouldn't have the money for at least 3 years(most likely longer) So the damage to short term credit doesn't seem to be a issue. Having no access to CC would be bad and hard to adjust too, but that I can live with that.

I'm currently living within in my means, I took a risk with the stock market I should of, and that will change, my spending habits are normally very good and I believe I can manage my budget well. I also have been on time on my CC payments now, they are on 0% BT offers till Feb, so I have a few months to think this over.

I most likely am missing out more then that tho. But that my rough thoughts.

[keepmine]

If you can repay it in a year and a half, do it.
While many of us have thrived post bk, if we had a choice between life with a bk and life without one, we'd take the latter.

[TEW]

If you can repay it in a year and a half, do it.
While many of us have thrived post bk, if we had a choice between life with a bk and life without one, we'd take the latter.

[Tdawg422]

Does CC debt wasn't from over spending, it was from stupid trading. Stupid investing, whatever you want to call it. I was using CC for float above what I should of. I then used Margin as it went down to try to recoup losses and went out of control.

I guess you are right that I wasn't financially healthy since I took risks I shouldn't of.

[Logan]

Okay I have 35k in CC debt over 3 cards. 16k, 13k, 4k

I was recently in fine financial health till a month ago. I lost about 65k in the stock market last month and now do not have the means to pay off that 35k debt.

I currently have 5k in my bank account, and 1500 in my trading account. I also have about 11.5k in my Roth IRA and about 5k in 401K

I make 40k at my job which is below the the medium income for NY. My living costs are low because I live with my parents now so I can put much of my money toward paying my Debt if I choose to pay it off. Rough math would take me about 1.5 years to pay it off, maybe as quick as a year.

I'm currently single do have a long term GF that we are planning to get engaged and married soon. I don't think that part should chance my choice to declare BK or not tho.

I work for an insurance company(AIG), and I've read that getting a new job in the finance field might be harder after declaring BK. I'm not sure how much that would relate to insurance as it tied to finance but no in terms of handling money directly or making payments, at least not in my current position, but future positions I'm not sure about.

Currently I feel my job is stable, but working for AIG I know that job security can turn any given day.

I'm not even sure if it is worth it do declare chapter 7, but if I the 6.5k I have saved do they take that as well?

The pro side I see for declaring chapter 7 is it would wipe out the 35k debt, maybe take 6.5k so it would clear up about 28k which would take realistically 2 years worth of savings.

The con side I see is mostly with the possible problems of seeing a future job. I wouldn't be buying a house or a Car within a few years if I don't declare chapter 7 since I wouldn't have the money for at least 3 years(most likely longer) So the damage to short term credit doesn't seem to be a issue. Having no access to CC would be bad and hard to adjust too, but that I can live with that.

I'm currently living within in my means, I took a risk with the stock market I should of, and that will change, my spending habits are normally very good and I believe I can manage my budget well. I also have been on time on my CC payments now, they are on 0% BT offers till Feb, so I have a few months to think this over.

I most likely am missing out more then that tho. But that my rough thoughts.

If you can pay it off in 1.5 years you're better of than going BK. Remember you can file only once in 7 years (or is it 10). Work hard and pay your bills on time and you're credit will be good and get out of debt>

NO MORE TRADING!!!!!

[Tdawg422]

When I say paying it off in 1.5 years that would be almost every dime I make going toward the CC bills outside of food, transportation and medical. I bring home about 1800 a month after taxes and benefits. I was using a model of paying 1500 a month to my CC and 300 left for food and transportation. I'm not really sure how realistic this model is. Even if I lowered my payment down to 1200 it would just be 2 years.

I guess I'm just overlooking the long term downside of filing for BK.

[TEW]

When I say paying it off in 1.5 years that would be almost every dime I make going toward the CC bills outside of food, transportation and medical. I bring home about 1800 a month after taxes and benefits. I was using a model of paying 1500 a month to my CC and 300 left for food and transportation. I'm not really sure how realistic this model is. Even if I lowered my payment down to 1200 it would just be 2 years.

I guess I'm just overlooking the long term downside of filing for BK.

Yeah we all make mistakes that's how we got here. Does your plan pay off the 4 k card then take the payment on that card and appling it to the next card? before you file you have to take credit counseling see what they say

[applecake]

A year and a half? Pay it off; get a second job to do it faster. Why not? You are single with few, if any, people depending on you. This is the most opportune time to slave away and kick this debt in the butt. Trust me. It's like 100,000x harder when you have a family. You're living with the rents - take advantage of it and stick it out until your debt is paid off. Doesn't your fiancee deserve better than to enter married life bankrupt? I think that actually should have an effect on your decision. Look up books by Dave Ramsey and Mary Hunt and READ them and change your money habits, so that you don't find yourself considering another BK 8 years from now. Don't even consider BK at all until it's your very last option.