I racked up lots of credit card debt going through college and graduate school. I have always been able to make miniumum payments and still had good credit. I now have $60,000 in credit card debt, $30,000 in school loans, and I had just bought a new car two years ago. I don’t make very much money so I would spend my whole paycheck paying bills, then live off my credit cards. This cycle would never end unless I made more money. That hasn’t happened yet. In fact I now make $20,000 less after this whole economic land slide.
I finally decided to file chapter 7. In order to file, I had to not pay my credit card bills for 6 months. I have never done that before so it was scary and made me feel pretty awful, but I could live off of my paycheck without using any credit cards for the first time.
Now that I am about to file chapter 7, I am terrified I am ruining my life and second guessing myself. What challenges will I face? I am so afraid I won’t be able to get new jobs, despite have a Ph.D., or get a good rate on car insurance or be able to buy a home.
The reality is that not much bad is going to happen, if anything at all.
I can confidently tell you that the biggest hurdle you will need to overcome is to forgive yourself. The self-inflicted emotional pain is the most debilitating facet to deal with. Everything else is actually fairly easy.
After bankruptcy your credit can be rebuilt, you will actually be able to save for a down payment and get a mortgage in a year or so, the chances of being rejected for a job because of the bankruptcy are slim to none, and as your credit improves your rates on everything will go down.
Just because the process is scary and intimidating does not make it the wrong solution for you. As you go along and if you get spooked or freaked out, come back here for support and guidance. I’m here for you, really.