Hope2Bfree Posted March 24, 2012 Report Posted March 24, 2012 I am considering filing bankruptcy and waffle back forth daily if not hourly.I have about 40-45K in unsecured debt, a vehicle that I have not been 30 days late on but when I pay each month its for the previous month. I also have a home ( bought in 2008) that is rented out but I don't know for sure if I have any equity or not. If I end up losing the house my only concern would be for my tenants. I make about 5400 a month including the rent from rental (pays the mortgage). I did a DMP for about a year but the lump sum payment got to be too much. I am current on some and behind on some. The CC companies are willing to work to lower the payments but I started thinking why, when I will be paying this debt for what feels like the rest of my life credit already in the dumps about 563. Right now I rob Peter to pay Paul each month and have no savings and am concerned that if an emergency happened financially it would be catastrophic for me right now. I'm military with a clearance so letting the debt just go is not really an option. Without the unsecured debt I am more than able to pay secured debt, save, and have some extra. Should I continue to try to pay the debts or file bankruptcy. i just feel like I'm drowning and would just like to be free of the weight of all the debt.
nobk4me Posted March 25, 2012 Report Posted March 25, 2012 (edited) You would lose the house in a BK because you are renting it out. You can only claim a homestead exemption if you are living there.How long do you plan to stay in the military? If you will be getting out soon, maybe maintain the status quo, and when you get out, you will have more options.Would a BK also affect your clearance? Edited March 25, 2012 by nobk4me
Hope2Bfree Posted March 25, 2012 Author Report Posted March 25, 2012 No I won't be getting out anytime soon. I won't lose my clearance as long as its not out and out financial irresponsibility and I can show that I have attempted to take care of the debt. Which I have. Sometimes for clearance purposes the debt is worse than BK as it makes you more vulnerable to bribery and such.
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