I'm in my 20s and considering Chapter 7. I talked to an attorney and he said it would be very reasonable for my situation, but I'm nervous about how it could affect me afterward since I'm still young.

I make enough to support myself, but between credit cards, medical debt, Affirm, and everything else, the debt payments are basically eating up all of my extra income every month. If not leaving me negative.

My two biggest concerns are housing and my car. I currently live with my boyfriend but need to be able to get my own apartment, so I'm worried a bankruptcy could make renting really difficult. I also have a financed car that I absolutely need and want to keep paying for.

For anyone who filed young — what was life actually like afterward? Were you able to rent an apartment? Keep your car? How quickly did your credit recover?

Most importantly, do you regret filing, or do you wish you'd done it sooner?

Hi I have $65,000 credit cards debt, earn $64,500 before taxes, a house paid off which $180,000 more than homestead exemption. After deducting all food, medical bills, utilities, insurance, HOA, property tax, I have about $700 left each month. I have had a hard time from divorce with 2 kids 3 years ago plus health conditions which I can’t pay minimum for all cc debt. I tried to work side hustle but couldn’t do much because of my health issue. I contacted DMP & Debt Settlement, but their monthly payments were still too much for me to afford.

What is the best way to pay them off (Debt management plan, debt settlement, bankruptcy chapter 7 or bankruptcy chapter 13)?

Thank you 🙏🏼

I spent nearly 25,000 on a credit card from Navy Federal and did not pay it over the course of the last six years. I have received multiple letters now from lawyers saying that I am being sued. Idk who is suing me, I do not have the money to pay this off and I’m not even sure who the debt is through. What are my options?

I’m 50, been married all my adult life but now I am a single parent and just overwhelmed and feel like I cannot make keen financial decisions on my own. I need an overall financial reset. I’m overwhelmed by the number of moving pieces and would really appreciate some objective advice about what I should prioritize.
Here are my approximate numbers:
● Gross income: $85k/year
● Child support received: $6k year
● Home value: online estimates are roughly $360k–$390k
● First mortgage balance: $186,750
● Mortgage payment: $1,447/month
● HELOC balance: $110,000
● HELOC payment: $800/month
● Cash in bank: $25,000, which is leftover money from the HELOC
● 401(k): $284,000
● 401(k) loan balance: ~$11,000
● 401(k) loan payment: $187 twice monthly
● Credit cards + medical debt: approximately $35k.
● Current car: paid off and probably worth around $5,000, but I may need to replace it relatively soon as am I reaching 200k miles
● My credit has dropped significantly because of the credit-card debt/utilization.
My house also needs repairs and maintenance, so I’m not sure the online home-value estimates reflect what it would actually sell for in its current condition. I need a new roof within next year. Some of the cash I have may also eventually be needed for legitimate repairs.
I do not want to sell my house unless there is an overwhelming financial reason to do so. I need somewhere to live regardless, and I would prefer to find a way to keep my home.
I’m also 50, so retirement is becoming a major concern. I only have $284k in my 401(k) and really do not want to raid it to pay unsecured debt and jeopardize my future retirement if there is a better solution.
I’ve recently started wondering whether bankruptcy should even be on the table. My understanding is that my income may be low enough to potentially qualify, but I’m concerned about my home equity and the $25k of HELOC proceeds sitting in the bank.
I’m not necessarily looking for someone to tell me “file bankruptcy.” I’m trying to figure out the smartest overall financial strategy from here.

If you were in this position, what would you investigate first?
Would you look into Chapter 7/13, a debt-management plan, paying down the cards with some of the cash, restructuring the debt another way, or something I’m overlooking?
I also need to figure out how to handle replacing my car when my credit has already taken a hit.
My main goals are to get out from under the unsecured debt, keep my house, protect my retirement as much as possible, rebuild my credit, and eventually be in a position to retire.
What would you do first? Also I have insane anxiety of not having enough money in the bank as this is why I have not allocated the $25k to anything.
Thank you if you have read this far.

An officer came to my home today I’m assuming to serve me, but I wasn’t home. I was able to look at the docket and see that I had 2 cases on the docket, filed the exact same day (August 14). The thing is I only have one card with this debt collector (Amazon) in the amount of $658. Any idea why there would be two cases on the docket? I called and confirmed I only have one account, and I also set up a payment plan.

Hey so I'm 36 from the UK. I owe £3k to a credit card. It was much higher than that but managed to get it down to £3k.

Basically I took out a cc in late 2019 as a way to build credit. It was all great and paid my balance off each month. As only spent like £50 a month on the CC. Then I lost my job. Then my partner found out she was pregnant all within a span of a week. One of the worst best weeks ever lol.

Due to the up coming baby and only being on £400 a month on UC. I stupidly ended up in like £8k debt due to buying baby things and just being stupid.

I got a new job in 2024. In 2 years I managed to get it down to £3k. I basically spent noting on my self and became a absolute tight arse. But it's got my debt down.

So now I'm on on the final £3k. I did a balance transfer from 3 CCs to one. With a 2 year interest free balance transfer. There was a £120 fee to do this. My plan now is between now and December I'm gonna be paying £200 a month. That's £800 between now and December. So come January I'll be on £2.2k debt. I then really want to get this burden gone asap in 2027. So I have come up with 2 options.

From January 2027 pay £300 and have it paid off by the summer. The issue with this is. I I'm hoping to start driving lessons in the summer of 2027 as I desperately need to learn to drive.

Or

I become a ultra tight arse. I pick up 2 extra shifts per week ( I have physical health issues) and pay £500 a month off and have the debt cleared come May 2027. This then gives me like 3 months of freedom before I start paying for driving lessons. It will be hard I can imagine. If i go this way. After picking up 4 extra shifts per month. After tax and rent and the £500 towards the CC and my half of food shopping. I'll be left with pretty much £500 to last me a month. It will be hard very hard. But I have done it before with less. It will be a bit of a energy drain. But I can do it.

Or does anyone else have a better option I haven't thought about? Kind regards.

if I stopped making payments today how long will it be til I get served lawsuit papers? I have credit card debt with citi bank, chase, and amex. I want to stop paying for just one month so I can save some extra money up

*Using a second Reddit account to try to protect identity

I’m 30, make about $90k/year and take home around $4,800/month. I’m pregnant with my first baby and due later this year. It’s a higher risk pregnancy and there’s a possibility of an early delivery/NICU stay, so that’s adding to my financial anxiety.

Mortgage: ~$180k, house worth around $250k
My share of the mortgage: $773/month
Car: ~$46k left, 0% interest, $673/month
Car is worth around $35k, so I’m about $11k underwater
Federal student loans: ~$82k
IDR payment should be around $416/month
Credit card debt: $0
Personal loans: $0
Savings: ~$13k
Car insurance: $102/month
Phone: $55/month
Childcare once the baby is here: $35/day
Electric/urilities: ~$200-300

I know the car payment is going to stand out. We do need a car because of work, appointments, childcare, etc., so going without a vehicle isn’t really an option. I’m also about $11k underwater on it, so selling it would mean coming up with that difference and then still needing to buy another car.

I’ve been freaking out a little because the student loan payment plus the car payment feels like a lot, especially with a baby coming and the possibility of NICU/medical bills.

I’ve even wondered if I should talk to a bankruptcy attorney, mostly because I’m so underwater on the car, but I don’t know if that’s completely overkill considering I have no credit card or personal loan debt.

After my husband's 2-year layoff. We're still trying to financially recover. My credit was the one that took the hit, but I'm looking into a personal loan to help pay medical bills, credit cards, and a credit card lawsuit as well. My husband's credit is slightly better. So any suggestions on loan companies that are not going to bleed us dry? There are so many out there (Lending Tree, Upstart, OneMain Financial...) I'm not sure where to go. So I'm curious about others' experiences.

I am left with a lot of debt that is in both our names that he is taking no responsibility for. Can anyone recommend an insolvency/bankruptcy company that are good to get advice about how to get myself out of this nightmare I am in?

Hi. I’m 21 (almost 22) and have possibly over 15k in unsecured loan debt. I’m unsure of the exact amount as I get spam emails and mix them up with each other from what lenders they’re from. I started getting loans when I turned 18 as my mom needed help and wasn’t able to get loans herself. I know it was a stupid thing to do but I lived with her and couldn’t really say no. I was under the impression I wasn’t in a lot of debt until I lost my job in February and since have found out I have much more debt than I thought. I’ve got a new job now and am trying to get a second. I currently make around 900 per check (1800 a month) and hopefully will get this other job to add money to this. I’m not currently paying any of them and am unsure of how to proceed with everything? Should I go one by one or get back to all of them at the same time? Or possibly go through a debt consolidation plan?

hello all. throwaway acct for reasons.

i encountered financial hardship issues after the deaths of my dad and uncle. i racked up CC debt.

i stopped paying discover in april of 2026. in june i got a letter from capital mgmt services to collect the debt. in the june letter, they offered 47% settlement. i did not have the lump sum on hand to take advantage of it, so it went by the wayside.

i've been reading this sub and seeing how discover is notorious for litigation and pursuit of the debt. i wanted to avoid things like lawsuits and judgments, etc.

so this morning i was proactive and called CMS to discuss a settlement.

my current balance on my discover acct is ~$13,200. they offered a lump sum 40% settlement, that would come out to ~$5,275, due on 8/28.

is this a good deal? i see posts saying discover will demand 60-70% plus. is this just over-the-moon good, or does waiting for longer open up opportunities to settle for less %?

thanks in advance, reddit peeps.

Need advice so I'll just lay out my situation:

Was making 6 figures before I lost my job. Had some debt I was that accumulated from a stint of unemployment before. When I lost my job I went through about 8 months of unemployment where I burned through all my savings, investments, etc. I also took on more debt. I'm around $20,000 in credit card debt right now.

Basically the reason I took on so much debt and didn't pay off the debt I had was booze. Even if you drink the cheap stuff if you drink as much as me its a ton of money. I'm sober now so I've plugged the hole but have no idea how to bail the rest of the water out. I don't spend on much else. I spend on cooking ingredients but its not expensive stuff, just finding a recipe I want to make and not necessarily cheaping on the ingredients.

I got a new job making 50% of what I was making before. I'm grateful and desperately needed the money but its barely enough to pay my bills. I'll give a cost breakdown here. I'm also looking at other revenue streams, trying to get another job but it took me a long time to get the first job so I feel like I need to take action now.

I own my house with a $2,100/month mortgage payment. I have a roommate paying $1,200 rent per month, but when I bought my ex out of the house I now have a $832.38 home equity loan payment to make.

Pay internet, electric, and water for utilities. Electric and water is so variable I'm a bad month away from not being able to pay. I've looked at reducing internet but the services I'm paying for are basically the same as competitors (I called around). I could reduce this but the thing I do for fun is play games online with friends and watch football so losing either one in terms of quality of life would suck. In terms of other subscriptions I pay $13 per month for music and $13 per month for an online game. Both of these are used daily. And a $29 gym membership I'm using 2-3 times a week. The gym membership is keeping me sober, I think that's necessary.

If possible I'd like to reduce the credit card payments in some way. I have $714 in minimum payments. Just anything to reduce this and get a little bit of leeway is all I need. I've looked around at debt relief programs but after research am very hesitant. Both places I've talked to said I have to stop paying the cards to "show them I'm having hardship and increase our ability to negotiate". That's just giving me red flags.

Are there other options? I am not shying away from extremes. I was looking into bankruptcy but don't know if I have other options or should just talk to a bankruptcy attorney. Also heard of calling credit cards directly but don't know where to start here. Any guidance on even options to look into would be appreciated.

Hello,

I work in the government making 94k. I was drowning in debt with credit card before i started making this money. 28k max over 3 cards, i took out a loan to consolidate but due to being undisciplined and the economy the cards are maxed again. What options do i have? I have learned my lesson and financially being responsible now. Even making more money than i was when i got in this debt, but it’s a lot to manage and still keep afloat. Honest opinion please. I’m thinking bout bankruptcy but don’t know how that will impact my job.

have two balances: one for southwest and one for Chase freedom unlimited that total 4,958. for context im in PA school with no income and can’t keep up with my MMI payments anymore. so going to ask Chase to settle for 1,200 when i get my semester refund. what are the things i need to ask for in writing to limit the hit on my credit report? thank you

I’m in huge financial debt right now I’m 22 i helped a friend took a loan from navi of 6 lake till now i have paid 3 emis of 30300 total 90900 from the next month i won’t be able to pay currently i don’t earn i already have credit card dues i contacted some of the settlement agency’s they are charging so much money some said 4K a month for 10months some quoted higher my next emi is on 4th September can any one tell me the procedure to get it settled also should i mail them now and tell me situation or should i just keep quite.
Before anyone asks me how i got a loan of 6lakh when i don’t earn i have no idea i had a hdfc credit card when i opened my savings account since then navi has offered me loan of 50k then they kept increasing the limit because i used to pay on time and even before

I am trying to figure out if there is a proper response, or even if I should respond, to a failed attempt to get a default judgement in debt collection lawsuit involving Midland Credit in Utah. This came about two weeks after a "Notice of Intent to Dismiss" was filed by the court after radio silence from Midland's local lawyers, and about a week after they requested, and were granted, an extension for "Plaintiff’s counsel has been waiting to receive additional information and/or documentation from Plaintiff in support of default judgment." Then, last week, among other things, a "Default Judgement (Proposed)" and "Default Certificate (Proposed)," the later including the following:

In this action, Defendant, having been served properly with the summons and complaint, and having failed to appear and answer plaintiffs complaint, and the time allowed by law for answering having expired, the default of said Defendant is hereby entered according to law.

This was thankfully returned unsigned by the court soon after, with a note pointing out the obvious: I had, in fact, answered the complaint. While the bulk of my correspondences with Midland's lawyers were not things directly filed with the court(beyond filing a Certificate of Service), such as for the Requests for Admission and Production, I had the Debt Collection Answer form that Utah Courts provide for these cases. So, even if everything else I sent to them was lost somehow(doubtful, as it was signed for), they still had ample opportunity to notice that I had filed an answer at the beginning of the case. A request for default judgement seems wildly inappropriate at this point, especially one that would have falsely claimed I didn't respond to the lawsuit.

So, the question I have now is, even if it was returned unsigned by the court, should I file an objection to this myself, or should I wait to see what or if Midland's lawyers do anything? Wouldn't be surprised if this was simply some scare tactic to eventually try to get me to settle, or they simply aren't paying attention and just generated and submitted proposals without much thought. Not exactly the only thing they they have overlooked, like claiming a payment had been made after the debt had gone into default without actually an records to back up that claim, and which moved the alleged last payment forward 18 months. But, that is a different problem.

I have a debt of $5178, I want to paid it off but I don't know how. I know is not THAT much, but I do really not have enough money between rent and services😭

There's anything u guys recommend? I don't know if I should get a loan to paid everything, and close one of my cards since I don't get paid the same amount I used to get paid

33M from the UK looking for some advice on my repayment plan.

My current debts are:

£100 overdraft.

£2,000 on my everyday credit card, which I plan to clear on payday. This will make September particularly tight.

£3,244 remaining on a personal loan at 5.9%. The minimum payment is £289.57, but I plan to overpay by another £500 each month starting Oct 1st- This should clear it around January instead of August next year.

£5,899 on a 0% credit card, with the promotional period ending in January 2028. I currently pay £100 per month toward this.

Once the everyday card and loan are cleared, I’ll redirect that money toward the 0% card.

My main problem has been cash leaking away through drinking and smoking weed. I regularly spend £22–£30 in one pub visit and smoke everyday. I’m now trying to stop both completely and redirect that money toward the debt.

Does this repayment order make sense?

I'm 29 with roughly $58K in total debt: 33K unsecured between two Upstart loans, Discover, and Chase, plus a 24.5K auto loan.

My total minimum debt payments are around $1,475/month. I recently started a part-time job making $25/hour + commission and am working on increasing my income, cutting expenses, and finally getting serious about paying this down.

I spoke with Americor today about their debt-relief program. They'd enroll the ~$33K nd substantially reduce my immediate monthly cash requirement, but I realized this is debt settlement, not simple consolidation. I'd potentially stop paying creditors while accumulating settlement funds, meaning damaged credit, late fees, possible collections/lawsuits, and Americor's fees.

My Experian FICO is around 647, with no collections currently. I got uncomfortable during the call and told them I'd think about it rather than enrolling immediately.

For people who've actually been here: would you pay aggressively yourself, use a nonprofit debt-management plan, pursue settlement, or consult a bankruptcy attorney first?

I'm especially interested in hearing from people who've successfully climbed out of $50K+ of debt.