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Is Bankruptcy the Best Option for Me? – Antonina

“Dear Steve,

I am the only income earner in my family, it’s me, my 2 young children and my fiance who stays home with the kids.

I make about 55K per year, but we stuggle every month. Our rent is $1000 per month. I had an SUV and paid $400 per month for it, the gas got expensive and in Feb 2007 I traded it in for 2005 altima which was a little better on gas, but with $3000 in negative equity and my not so great credit already (some older credit card collections and a totalled charged off vehicle which is now pat 4 year statue of limitations) my payment went to $450.

But then I had my second child and my expenses went up. My income hasn’t really changed but everything is more expensive. So one of my friend’s friend said they would buy my altima since I had hard time putting gas and making payments and it also started having maintance issues, so I went and I know it was stupid now, but I bought a new 2010 corolla since it came with maintance package and was so much better on gas. the car sale did not go through and now I was stuck with two car payments (my corolla was suppose to be 420 but they changed to 473 because they couldn’t approve me for 6 years).

So i had the altima repossesed in July 2010, they sold it, I owe $9k for deficiency, they haven’t sued me yet, they say they will. So now with extra expenses for the kids and expenses of having mold found in our apartment (we had to move out for a while while the landlord was fixing it) I am behind on my toyota payments, 2 months behind. I can make one payment this coming payday, but I don’t know if I can keep paying every month. I also took out a payday loan that I have not been able to pay back, so i am stuck paying finance fee every payday.

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I am seriously considering bankruptcy but if I have to pay the fees then I can’t make the car payment. my fiance has an old buick that has trasmission going out, so we need to buy him a car to drive the kids to school in (we are just looking at something old and cheap) so that’s what my tax return is going to. (we can’t share a car I live too far from work and he can’t be without the car with 2 little kids at home). My lease on my apartment is month to month.

Is bankruptcy the best option for me? When should I file? I know I can’t make any luxury purchases, is buying a car for my fiance a luxury purchase? (his car is going to break down within a month, he is a mechanic and he knows) Also, I have to take my corolla for maintance to dealership with the package I bought, can they take my car? (the financing is toyota financial, not in house dealership) I can’t be without a car, if I am then I can’t go to work. Where can I get a car if my car is repoed?


Dear Antonina,

From everything you’ve shared it sure sounds like bankruptcy would be a logical approach. it would help to shed some of your debt and at least one car and that should get you back to being able to live within your income.

At this point the logical next step is for you to go and talk to a local bankruptcy attorney.

You can click here to find a local bankruptcy attorney and if you’d like a second opinion about your situation or a personal consultation by another debt coach, please feel free to contact Damon Day.

Please post your responses and follow-up messages to me on this in the comments section below.


You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.

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About the author

Steve Rhode

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

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