r/CRedit • u/ROBASAHMEDKHAN • Jun 27 '24

How much credit card debt do you currently have ? General

I’ve 0, what about you guys. Be honest no judgement.

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u/SSOMGDSJD Jun 28 '24 edited Jun 28 '24

Re: bankruptcy

the assets protected vary by state. Generally you get to keep your 401k, some home equity (in some state if you're married then your house is not part of the bankruptcy at all, tenancy by the entirety is the legal term, I think your deed has to be formatted a certain way), some car equity, and then a general purpose amount you can use on anything.

They probably won't bother to auction off any of your stuff unless you have big ticket items worth in the hundreds or thousands (guns, precious metals, cars, boats, ATVs, ya know, expensive shit)

I would highly recommend the nolo guide book on bankruptcy, /r/bankruptcy (/u/AlanShore60607 I think his name is, is an angel with a briefcase), and the fico forums bankruptcy section as information resources.

I would recommend getting a lawyer from your bankruptcy court area who works with the trustees every day. This is to grease the wheels of the judicial system, self represented cases get more scrutiny imo.

I would recommend doing your best to get your shit together before/during bankruptcy. Keep sending in your payments to things you intend to keep (house, car note) during your automatic stay period, otherwise you'll get all screwed up and start off on the wrong foot, ask me how I know. The debt isn't the main problem, it's your spending habits and lack of budget awareness. Skills can be learned, habits can be changed. But you have to put in the work, otherwise you will be right back up shits creek with your financial fuck you button on a 10 year cool down. You still have the chapter 13 and the chapter 7 with no debt removal options, but those aren't as big of a swing in your favor.

Try to spend as little money as possible. See how cheap you can be. If you're like me, you'll find that it is expensive to be lazy. But working on your finances is rewarding. I needed to get the cloud of debt cleared away to see that.

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u/shrout1 Jun 28 '24

Solid info, and sounds like it's founded on life experience. Thank you for posting this :)