I'm going to file for bankruptcy on Tuesday.

[Tobin S.]

It could have been worse for my creditors. I'm leaving about $16,000 on the table in unused credit on my credit cards. I'm current on everything and I'll be filing with a 753 credit score. They probably don't see that too often in bankruptcy court.

When my wife and I got together we both had a lot of debt. I was a long haul trucker and I owned my rig. I knew I couldn't have a good relationship with my wife unless I was home regularly. I took a local job that paid less thinking that I'd be able to sell my rig and my condo in a relatively short amount of time. It cost me $12,000 to get rid of the rig and I still own the condo. Between the two of them they account for about $28,000 in unsecured debt and I still owe about that much on the condo in which I am way underwater on. I've actually had that place up for sale for $20,000 and I couldn't find a buyer. Well, the bank is going to own it now. I also tried to absorb some of my wife's debt in a chivalrous but ill-fated move. My wife lost a decent paying job earlier this year through no fault of her own and is now working for $7.50 an hour. We need her income to help pay the bills, but she has been unable to find anything better.

I've tightened my belt and we've cut out things to try to make it work. I've leased my condo when I could. But even on our bare bones budget we're still coming up about $600 short a month. My savings are down to about $3000. If I manage to lease my condo again it will only give us about five more months before we are out of money. Might as well file now and put an end to the stress.

I qualify for chapter 7 bankruptcy. It will wipe out about $1300 a month in debt payments so we'll be back on the positive side again. I'll get to keep my car. Our house is in my wife's name and she is not filing. It will make my credit look shitty for a long time, but I don't foresee us needing credit any time soon. The next big thing will probably be a car for my wife and I think her current one will last another three or four years.

My wife was upset, but when I explained everything to her, she felt better about it. She made the comment that ever since we've been married we just can't seem to catch a break. I told her that this is a break. Imagine if we weren't able to do it.

[CaliforniaPeggy]

1. My dear Tobin!

It's a tough move, but a smart one. Good for you, doing it now.

I'm sure you have mixed feelings, but overall, I hope you're feeling better. You two have worked so hard, and you deserve to feel good!

[Tobin S.]

2. Thank you.

Yeah, that's the kicker. From 2012 until now I've never worked harder in my life, but we've gotten nowhere.

I guess I shouldn't say that in such absolute terms. I do have a bachelor's degree now and I have all of that time with my wife and many happy memories to show for it. And I have her. Nothing is more important to me than my wife.

[CaliforniaPeggy]

3. Love is the thing that matters, and you are living that truth.

Congratulations on knowing it now. Many people never figure it out...

[flamin lib]

4. Tobin, you have made a very wise decision.

I declared ten years ago and it was the best thing to happen to me in a long time. Do NOT feel guilty, the creditors made a lot of money off you and will be just fine. From what you said in the OP you'll be fine. The BR falls off after five years and suddenly you'll be flooded with credit offers.

The best part of it is that you'll form even better habits than you now have and things will be so much easier going forward. I did a chapter 13 and after my last payment my FICO score was just south of 700. I got one credit card and used it for gas only, paying it on time every month. Within a year my score grew by 100 points. rMy score is now above 800 and the credit card companies hate me. Not only do I never pay any interest but I use the cashback rewards to pay against the balance.

BR is an honest tool to get on your feet. I only wished that I hadn't waited so long to use it.

[Tobin S.]

5. Thank you.

I appreciate your kind words of support.

The main thing I'm worried about is trying to find a better job. I know many employers do credit checks on prospective employees now days. I graduated from college back in December. I went back to school in an effort to improve my life. It hasn't panned out so far, and I'm hoping that going forward employers won't judge me too harshly.

[flamin lib]

15. Unless you apply for some sort of fiduciary position like a banking position or

investment councilor I doubt that a credit check will come up.

[steve2470]

6. you made the right decision

As someone else said, don't feel bad, because creditors factor in X number of bankruptcies to make their profit targets. It's not like you owed X dollars to "sweet little old lady down the street", hardly. Now you have a good start again.

[Tobin S.]

7. Thanks, Steve.

I'm not worried about my creditors. I was doing some calculations for one of them the other day. The original loan amount was for $25,000 on a personal debt consolidation loan. I've paid them $22,000 in payments and I still owe them $14,000. I'm sure they'll be okay.

Same thing for my condo. I've paid them almost $29,000 in payments and my original loan amount was for $33,500. The balance on the account is still almost $29,000, but when they recover the property, all they have to do is get a few thousand dollars on it and they are back in the black.

I don't really feel guilty, but I wish I could have made it work. That's okay, though.

[discntnt_irny_srcsm]

8. Sorry to hear of your troubles but I'm glad you have a plan

I would have been to do the same in the past but didn't. Best of luck to you.

[Tobin S.]

12. Thank you.

[DFW]

9. It sounds like you are taking an incredibly sensible approach to this

It has to suck, no matter how you look at it. Even so, keep your head, and here's hoping that next time around, you head upwards from here, and never look back. You have a bunch of us rooting for you!

[Tobin S.]

13. Thanks, DFW.

There is nothing else I can do that makes sense.

The way I look at it, looking back to when I met my wife about five years ago, if someone would have said to me at the time, "This is the love of your life. You have to choose between her and wealth." I would have chosen her every time. There is no amount of money that can replace my time with her over these past five years.

And who knows? We might turn out to have riches later in life. But there isn't a dollar amount you can put on my wife. No way. Now how. I'm sure you can appreciate that.

[DFW]

22. I promise you I appreciate that!!

And if you check my post, you'll understand that I've been appreciating my wife for a very long time now. When I first met her, I worked like crazy to save enough money to visit her at Christmas four months later. I was hand-to-mouth until I got recruited by my current outfit, but no matter what it cost, I didn't want to lose her just because she happened to have been born on the other side of the ocean.

We celebrate my 40th anniversary with the people I work with in four weeks. FORTY years working with the same outfit. Most people I know can't fathom that. But they have been good to me and I have tried to be good to them. If you luck out, maybe you'll find something similar?

[applegrove]

10. You are the exact person the laws were built to save. No sense in good people

Last edited Sat Jul 25, 2015, 06:55 PM - Edit history (1)

being stuck in a deepening hole.

[Tobin S.]

11. Thanks, sweetie.

I appreciate the kind words.

[applegrove]

17. The banks will not suffer one wit. A certain % of loss is factored

into their loans. Their profits will continue.

[irisblue]

14. I think this is a good thing

You will get a lot of offers for credit after you file. I was dating some one who had filed, it was a surprise how many came in.

[calikid]

16. It may take a while to feel the relief, but when you do, it will be tremendous

You'll wonder why you didn't do it sooner

[Jim Lane]

26. It may not even take a while.

A friend of mine declared a few years ago -- full of foreboding in advance about what would happen, but it took almost no time for the advantages to manifest themselves.

Tobin, may the same happen to you!

[Brainstormy]

18. That's why the law

was created. Nobody does this casually but you should take the opportunities that are presented within it for a new beginning. Trust me, there's life after bankruptcy. Best of luck to you and to your new future.

[DawgHouse]

19. It sounds like you've got a plan so that's a good thing!

Best of luck to you and your wife. You will feel so much better without that weight on your shoulders.

[rurallib]

20. Tough decision, but it sounds like you have thought it through thoroughly.

Sometimes it is just better to cut your losses and move on.

But keep your dreams, my friend. I still believe that in 5 years this will be just a bad dream for you.

Best wishes.

[NV Whino]

21. Good decision, Tobin

There is no shame in bankruptcy. I declared under (dare I say it?) the Reagan (mis)administration. I tried to work with the banks and asked for a reduction in interest rates. Nope. They chose to take the total loss rather than work with me.

I kept one gasoline credit card off the books. I had nothing of value that the banks wanted. New start.

Be prepared to be deluged with credit card offerings. Look them over, take the best deal, charge small amounts every month and pay it off every month. Your credit will rise in no time.

Be aware that they have increased the time period when the bankruptcy remains on your record. It used to be 7 years, and I think they've upped it to 10 years. If you buy anything, such as a car, during that period, the interest rates will be exorbitant. Yep, I got caught right at the time change. Had to buy a car, and had no choice.

I'm glad you madethismove. You will breathe easier.

[bluedigger]

23. It's not just for Trump, you know.

You'll be back on your feet and running for President before you know it!

[TexasBushwhacker]

25. I was thinking the same thing

I don't think it bothers Trump one bit. Unlike him, you have a conscience.

[riderinthestorm]

24. Anyone I know whose done this says they wish they'd done it sooner!

It seems as though you could buy some stuff on your credit card with that much available credit before you head to court...



Just breathe. Everything's going to be all right.

[Downwinder]

27. I don't know about the group you will be joining.

like: George W. Bosh, Donald Trump, American Airlines.

Next you might become a Republican.