Hello all! Glad I found this forum. I spent a few hours today reading threads which were very helpful to me.
I have about $117k in unsecured debts (mostly credit card debts) . I was paying the minimum and after paying, used my cards for our daily expenses or to pay bills, so every month my cards were maxed out. My unsecured debt payment every month was around $2300. I enrolled in a debt management plan and my monthly payment was reduced $1850, but my monthly income was still not enough to pay all the bills. My parents have been helping out financially. Even then I was a month behind in mortgage, and months behind our utility bills. Also was sued for a deficiency balance of a repossessed car from 2020. Debt collectors called me everyday (I never picked up the phone). I tried applying for HELOC but did not qualify due to my poor credit score. So I decided it was time to file for bankruptcy.
I filed Chapter 13 last December (should have done it sooner) and have made 3 payments since then. It's a 5-year plan (not sure what the % is) with a monthly payment of $755 until September this year, then will increase to $1577 once I have paid off my 401k loan. In addition, I have to forfeit a portion of my tax refund every year.
I have about $117k in unsecured debts (mostly credit card debts) . I was paying the minimum and after paying, used my cards for our daily expenses or to pay bills, so every month my cards were maxed out. My unsecured debt payment every month was around $2300. I enrolled in a debt management plan and my monthly payment was reduced $1850, but my monthly income was still not enough to pay all the bills. My parents have been helping out financially. Even then I was a month behind in mortgage, and months behind our utility bills. Also was sued for a deficiency balance of a repossessed car from 2020. Debt collectors called me everyday (I never picked up the phone). I tried applying for HELOC but did not qualify due to my poor credit score. So I decided it was time to file for bankruptcy.
I filed Chapter 13 last December (should have done it sooner) and have made 3 payments since then. It's a 5-year plan (not sure what the % is) with a monthly payment of $755 until September this year, then will increase to $1577 once I have paid off my 401k loan. In addition, I have to forfeit a portion of my tax refund every year.
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