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MinistryofTruthAgent t1_iya026o wrote

Reply to comment by MikeWPhilly in Help! Drowning in debt. by nah_just_ocd

Declaring bankruptcy means OP can never touch credit again for 7 years. Idk if OP will find someone who they can even rent from…

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Mtskiguy21 t1_iyb1pbu wrote

My mom lost her house to foreclosure in 2013 and filed bankruptcy in 2015. She had a credit card in 2016, financed a car in 2017, and got a mortgage with a 700 credit score in 2020. It's on your credit report for 7 years, but you're not completely blacklisted from credit for that entire period.

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MinistryofTruthAgent t1_iybi4ko wrote

Which bankruptcy?

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Mtskiguy21 t1_iybifgz wrote

I'm not sure. I don't know the difference. I just know she bounced back rather quick. Is one type worse than the other? 7 and 13 are the primary personal vehicles correct?

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WorstPapaGamer t1_iya0jpc wrote

That was my initial concern with bankruptcy. Where do you live for 7 years?

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MinistryofTruthAgent t1_iya19xg wrote

Yeah. I see a ton of people telling OP to declare bankruptcy. Bankruptcy is the Nuclear Option. Yours going to be hell those years.

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MikeWPhilly t1_iyaa0bz wrote

Yep no disagreement. That it’s nuclear. Which is why the specialist. He is at nuclear territory. his monthly interest is basically 33% of his net. He’s at nuclear territory the real question is how to structure everything. I know what SF costs to live, I haven’t seen a budget yet but reality is I doubt he is even paying his interest per month. This means his debt is increasing….

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Upstairs_Ant3694 t1_iyacivi wrote

It really depends on a few factors. Could be hell going through bankruptcy, but it's not going to be easy paying down that debt over years and years either. Bankruptcy may be the faster route to a positive net worth.

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spoink74 t1_iyavygv wrote

7 years is not that long of a time. Bankruptcy is the answer here. Then for goodness sakes do not do it again.

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Upstairs_Ant3694 t1_iyac4ij wrote

I don't think that's exactly true. Lots of people get pre approvals for credit cards in the mail right after their bankruptcy completes. It very much depends on the situation though.

Edit: That said, OP probably shouldn't touch credit again for 7 years. Haha.

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MikeWPhilly t1_iya0f50 wrote

Yep he’d hav to stay put for 7 years for sure. His current landlord likely won’t kick him out i he is paying on time but it’s a risk. But his debt ratios are so bad for his income. And the interest alone is going to kill him. There is a reason I’m saying he need sto talk to a specialist. Bankruptcy has it’s risks but I don’t see him climbing out any other way.

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cloverdoodles t1_iya3bmr wrote

Statewide rent control in CA. As long as OP is in a rent controlled unit and pays his rent every month, they can’t kick him out. OP should have his housing locked into rent control prior to filing for bankruptcy.

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Nitesen t1_iyaae1y wrote

Doesnt the SF area have a massive homeless population? There’s always room for a tent, SOMEWHERE.

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MinistryofTruthAgent t1_iyai23t wrote

If Op has a vehicle they can live in it.

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Nitesen t1_iyai9ev wrote

That’s the thinking! However, they might take the vehicle as part of the bankrupcy.

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MinistryofTruthAgent t1_iyaiud7 wrote

Can’t take the vehicle if you’re living in it.

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Nitesen t1_iyaj46w wrote

Can i buy a nice house, rack up debt, file bankrupcy and live in said house because, i live in it so they cant take it? Hm.

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MinistryofTruthAgent t1_iyakv3a wrote

Actually yes. In a Chapter 7, as long as your payments on your house are current, they can’t take your house. I believe Chapter 13 bankruptcies as well have these protections.

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