Feel Financially Ruined... Considering Bankruptcy.. Don't know what else to do. (debts, rate)
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I agree, as hard as it is, especially with a child on the way, getting your wife back to work and focused on a longer-term career plan is the best way to get yourself out of this mess and towards building a financially secure future. Once you get through this immediate mess (and you will!), in this economy there is no such thing as a secure job and your children will probably want to go to college so the hard reality but most secure thing you can do is have two people working. You need to get rid of that rental property. We did a similar thing with holding on to a my former home that I bought before I got married and not wanting to sell during the recession. While we have had OK tenants (knock on wood), there is so much risk and cost with a rental property, and real not much immediate tax benefit. I’m hoping with the tax reform there will be an opening to sell it, and I can’t wait! Could you talk to the bank about a short sale? That is as simple as a phone call. Also looking at selling your existing home and moving into the rental is an option as well if that monthly mortgage is a lot less. I am sure these mortgages are your highest cost, so it probably makes sense to start there. You sound like a great person and wishing you all the best in getting this back on track.
I don't think people realize how expensive childcare is. A safe, low-balling number is $200/child/week. That would be finding some other mom to keep them alive and not much more. It would add a lot of stress AND even more expense in work attire, transportation and all the costs associated, meds and copays (because children get sick more often elsewhere, like it or not), sick days and eventual job loss to care for children when the sitter says they're too sick to stay, etc.
It is CHEAPER in most situations for a parent to stay home until they're all in full-day school, I promise.
OP- I hope you're going to post more details/specifics. I'd love to take a whack at it as a detached, third party who can strongly empathize with your situation. Please feel free to PM, if you'd rather, along with the state you're in.
After taxes, health ins etc. I bring home around 3652 a Month. (gross income is 65k yr)
(for a family of 4..currently)
Mortgage - 1000
Car is 275
Car ins - 150
Cell Phone - 88
Power - 150 avg.
Nat. Gas - 100 avg.
Internet - 64
Water - 100
Groceries - 800
Fuel - 320
Netflix - 12
Credit card 1 - 400
Credit Card 2 - 160
Credit card 3 - 160
Credit Card 4 - 40
Credit card 5 - 0
HVAC Loan - 325
So this is without buying clothes, going to the doctor (co pays medicine etc).
I've trimmed a lot of things to the bone.. I think...
I used to make about 15k/year more and Health Insurance was cheaper by 1/3 etc, so I would have been able to handle this... actually I wouldn't be here at all...but no sense in wondering about that anymore.
I'm still current on everything, I just know I'm sinking..been slowly doing so for a year.
After taxes, health ins etc. I bring home around 3652 a Month. (gross income is 65k yr)
(for a family of 4..currently)
Mortgage - 1000
Car is 275
Car ins - 150
Cell Phone - 88
Power - 150 avg.
Nat. Gas - 100 avg.
Internet - 64
Water - 100
Groceries - 800
Fuel - 320
Netflix - 12
Credit card 1 - 400
Credit Card 2 - 160
Credit card 3 - 160
Credit Card 4 - 40
Credit card 5 - 0
HVAC Loan - 325
So this is without buying clothes, going to the doctor (co pays medicine etc).
I've trimmed a lot of things to the bone.. I think...
I used to make about 15k/year more and Health Insurance was cheaper by 1/3 etc, so I would have been able to handle this... actually I wouldn't be here at all...but no sense in wondering about that anymore.
I'm still current on everything, I just know I'm sinking..been slowly doing so for a year.
If my math is right you're short -- just with these numbers -- about 500 a month. Before anything unexpected comes up.
Can you increase your income? Overtime? Part time job?
Can the wife babysit someone's kids?
Is anything close to being paid off, which would free up some money? (It didn't sound like it in the OP, but I thought I'd ask.)
Does YOUR house have equity in it? Would you sell it, and downsize? Or go for reorganization first?
Ideally how do YOU see yourself getting out of the hole. What would YOU like to see happen?
If my math is right you're short -- just with these numbers -- about 500 a month. Before anything unexpected comes up.
Can you increase your income? Overtime? Part time job?
Can the wife babysit someone's kids?
Is anything close to being paid off, which would free up some money? (It didn't sound like it in the OP, but I thought I'd ask.)
Does YOUR house have equity in it? Would you sell it, and downsize? Or go for reorganization first?
Ideally how do YOU see yourself getting out of the hole. What would YOU like to see happen?
I wish something was close to being paid off. Most of the debt came about the last 2 years or so.
How do I see myself getting out of the hole? I'm not sure, that why I am seeking advice. I would love to find a job making what I was, then perhaps I could stomach it better, just batten down the hatches for a few years and pay things down.
I didn't realize it, I didn't flaunt it but internally I was a proud person, proud of my income, proud of my possessions, I was proud of the fact that I was financially stable, I felt like I was being a great husband and father.. providing for my family...it made me feel like I was on the right path in life, doing the right thing. Someone my family could look up to. The thought of BK was sickening, it meant the ultimate failure for me. My parents went bankrupt, had a foreclosure, car repossessions and I swore I wasn't go to be like that...
All that is gone right now, no pride here anymore. I just want to move one with my life. Put this all behind me and march forward but I am not even sure if I am done taking hits yet...
I wish something was close to being paid off. Most of the debt came about the last 2 years or so.
How do I see myself getting out of the hole? I'm not sure, that why I am seeking advice. I would love to find a job making what I was, then perhaps I could stomach it better, just batten down the hatches for a few years and pay things down.
I didn't realize it, I didn't flaunt it but internally I was a proud person, proud of my income, proud of my possessions, I was proud of the fact that I was financially stable, I felt like I was being a great husband and father.. providing for my family...it made me feel like I was on the right path in life, doing the right thing. Someone my family could look up to. The thought of BK was sickening, it meant the ultimate failure for me. My parents went bankrupt, had a foreclosure, car repossessions and I swore I wasn't go to be like that...
All that is gone right now, no pride here anymore. I just want to move one with my life. Put this all behind me and march forward but I am not even sure if I am done taking hits yet...
A BK just for credit cards is far, far from a huge failure. You'd be surprised how quickly your credit will rebound from it, especially since you will still be paying well on your other loans. Heck, some friends of mine had to do this and the guy was like 'I wanna do that again. Free money!' I don't advise that, of course, I am just illustrating how non-traumatic it was.
If things continue to be too hard, you might HAVE to sell your home and move back into what is now your rental. You have to do what you have to do. It's better than being truly bankrupt where you LOSE your home, which happens to many people.
I have neighbors that have lived for years with TWO CHILDREN in a ONE BEDROOM condo. They did what they had to do, and now are finally moving into a house.
A BK just for credit cards is far, far from a huge failure. You'd be surprised how quickly your credit will rebound from it, especially since you will still be paying well on your other loans. Heck, some friends of mine had to do this and the guy was like 'I wanna do that again. Free money!' I don't advise that, of course, I am just illustrating how non-traumatic it was.
If things continue to be too hard, you might HAVE to sell your home and move back into what is now your rental. You have to do what you have to do. It's better than being truly bankrupt where you LOSE your home, which happens to many people.
I have neighbors that have lived for years with TWO CHILDREN in a ONE BEDROOM condo. They did what they had to do, and now are finally moving into a house.
Yes, I am definitely aware that things could be a lot worse and despite my whining, I am still very grateful that they are not so.
As far as the town house goes. My lawyer is telling me to let it go during the BK. So I guess that would mean a foreclosure as well.
I really don't want to let it go but I see what he is saying, I just don't have the money right now if something were to break. I have replaced the water heater, carpet, roof, appliances etc in it with in the last 6 years (Carpet being the most recent) but the HVAC system is on its last leg.. If I were to replace that, that would be 3 HVAC systems in the last 3 years.
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