I owe $58000 on an $82000 manufactured home (in other words, no value there).
I owe $80000 in credit card debt. No car loans…no other loans of any kind.
My wife works, but I am currently unemployed; receiving unemployment. I’ve never been late on a payment of any kind, but struggling.
Is bankruptcy the only alternative for me?
Bankruptcy is a legal alternative to eliminate or reorganize consumer debt so you can get a legal fresh start and second chance.
It’s not the only alternative for anybody but a lot of time it is the best alternative considering the overall situation.
In your case I think you might have reversed the loan and value of your manufactured home if there is no value. It sure seems that based on your current situation and unemployment there is no reasonable expectation you will be able to repay the debt that you have.
Your most logical options would be to continue the path you are on and spiral down or do something proactive and click here to find a local bankruptcy attorney to talk to.
Bankruptcy is most beneficial for you if the reduction in debt achieved allows you to live your life within your current income. Just remember, unemployment does not last forever so you should not count on that as part of your living expenses. Ultimately you will need to replace that lost income with some sort of employment.
It might be very helpful for you to read this previous article, The Honest and Unvarnished Truth About How to Get Out of Debt.
Please post your responses and follow-up messages to me on this in the comments section below.