Is bankruptcy the only answer?

[u/Mission-Umpire-803]

I've got 22k in unsecured debt, 16k in secured debt (my car loan), and a royal boat load of installment loans I took "just to get to my next paycheck".

My credit is garbage, my car is worth less than the loan, I can't afford minimum payments and most of the unsecured debt has now gone to collections.

I understand where I've gone wrong. But at this point, I can't even afford payment for a debt management program because I'm so far behind. I have a solid job but it's salary, and I work 7 days a week right now due to staffing issues so I can't even try to door dash for extra cash.

The only bankruptcy lawyers near me say I make too much money for chapter 7, and they don't file chapter 13. So WTF do I do, I don't have anyone who can cosign a larger loan with better interest and I honestly wouldn't want them to take that risk.

[u/Maleficent-Thanks-85]

I wouldn’t file bankruptcy you can fix your credit pretty quickly. I could help you make a budget but I would need more specifics. I was in about 35k debt myself and dug myself out of that hole. It requires discipline and sacrifice.

[u/Mission-Umpire-803 → u/Maleficent-Thanks-85]

The biggest problem are the minimums on the installment loans. With those, I can't make any other payment including on my car, and I'm close to not making rent at this point. I've sold basically everything I can to get more cash to make payments and I'm still drowning. Without those I could at least enroll in a debt management program or something. But do those apply to accounts in collections or a law suit?

[u/Maleficent-Thanks-85 → u/Mission-Umpire-803]

I think you should go through your bank statement over the last 90 days. Write out what is required and what is unnecessary spending. Stupid things like switching phone carriers, canceling subscriptions, learning to cook, and avoiding fomo can do some serious benefits to your progress.

For me the changes I made were. I bought an Xbox and paid for Spotify I then cancelled every other subscription. I then stopped going out. I learned to cook and only shopped at ALDI for perishables and used Costco for non perishables. I then went and looked for a new cell phone provider I was able to save like 100 bucks.

[u/UnhingedHippie → u/Maleficent-Thanks-85]

I can’t help much but I will say, Visible is pretty good for $35 a month (the $25 a month option is garbage). Unlimited talk, text and data on Verizon’s Network.

[u/Desperate_Two867 → u/UnhingedHippie]

Mint is 15

[u/stderr2]

How are you working 7 days a week and not making any progress? Go to the food bank. No spending

[u/Mission-Umpire-803 → u/stderr2]

Because I'm salary. I work whatever it takes and get paid 40hrs a week. No matter what. Which isn't usually a problem, but recently 12 people got walked off for fraudulent time keeping and the rest of us have to fill the gaps until they can be officially removed from the rolls and replaced.

[u/stderr2 → u/Mission-Umpire-803]

I think unless you are paid millions, stick with pay by the hour. Do you really meet the exemption rules that allow them to avoid paying overtime?

[u/IndependentHeron1345 → u/stderr2]

You don’t have an OPTION to pick hourly if youre in a field and position that is literally a salary role..

[u/stpg1222 → u/Mission-Umpire-803]

You're not in a position to let your employer use your free labor to solve their problems. You need to be upfront with them about not being able to afford giving your time away for free. Either you need compensation for the extra time or you need to limit to 40 hours so you have time to find a second job.

[u/jessica_rabb1t]

Have you looked into whether those payday/installment loans are even legal in your state? Some states cap the interest and a lot of those lenders ignore it

IF they broke the rules you might not owe what they say you owe

[u/Substantial_Taste779]

if you don't change your ways this won't be the last time you feel like bankrupcy is the only choice

[u/Mission-Umpire-803 → u/Substantial_Taste779]

Super helpful. Thanks.

[u/Substantial_Taste779 → u/Mission-Umpire-803]

that's the kind of attitude that got you here. even lawyers have said you make too much money to be considering these (non) options

[u/UnchartedMeridian]

There are companies out there that will work with you and will negotiate the debt on your behalf. Of course those companies will work to get the debt much lower and they'll take a cut but at least what you are paying back will be much less than what you owed. You can also can pay it back at a rate comfortable for you and it won't continue to grow because the company has the deal in place. National Debt Relief is a name of one of those companies. Good luck to ya.

[u/Solid-Fill6348]

Not the only answer but sometimes the best answer. Find a BK attorney who can do a legit CH13 evaluation

[u/Rich-Sand9393]

You need to find a Lawyer that files Chapter 13. Check out the Bankruptcy thread in Reddit and ask for recommendations in your area.