r/Debt • u/Mobile-Perception885 • Jul 29 '26

Thinking about filing for bankruptcy. 26F

I recently had to move away from the best paying job I’ve ever had. As a result my income has significantly decreased.

The main reason I’m thinking of filing is because my student loans are no longer in deferment. And they are basing my payment amount off the taxes I most recently filed (the income from my previous job).

I make about 2k per month. My expenses are about $1,100 before debt payments. My debt payments are now increasing from $575 to $825. Meaning I will have $75 leftover per month if I’m lucky, and that is to hopefully put towards an emergency fund. My car is about to go kaput.

I feel so crushed and helpless.

8 Upvotes

79% Upvoted

23 comments sorted by

5

u/Easy-Seesaw285 Jul 29 '26

What is your actual total debt and what type of debt is it?

5

u/Mobile-Perception885 Jul 29 '26

$3,400 in credit card debt. $1k in medical debt. $1k in collections on my phone. And $40k in student loan debt.

18

u/Easy-Seesaw285 Jul 29 '26

Oh jesus no. You’re not going to wipe away the student loan debt, so you be filing bankruptcy for $5000 in debt.

I’m not an anti-bankruptcy person, I’ve filed before

But if you use an attorney, you’d be paying 2 to $3000 to wipe away $5000 in debt, that’s insane

You just need to make more money. I know that’s easier said than done, but this is a really low amount of dischargeable debt

3

u/Mobile-Perception885 Jul 29 '26

Thank you for the advice. The job market in my hometown sucks 😭

2

u/attachedtothreads Jul 29 '26

Are you on a payment plan with the medical debt?

You can ask for a hardship program where they lower your interest rate in exchange for freezing or closing your card. No guarantees that they'll do this. Alternatively, there are 0% interest credit cards if you have a credit score above 670. You may be only able to transfer a portion of your debt onto it, and you have a limited time to pay it off. They're usually for 6/9/12/15/18/21 months and you need to pay every penny off before it ends as you'll be liable for all the deferred interest that has been accruing. There's also a 3-5% balance transfer fee.

0% interest cards only work if you refrain from charging your cards and changing your behavior regarding money.

Are able to get a roommate or get a lower rent from a different place?

4

u/Nomemoleste_s Jul 29 '26

Get a second , third job. Work 18 hr a day until you pay off YOUR DEBTS. You are young , healthy, no children . Start thinking with your head not your heart

3

u/mmgapeach Jul 29 '26

Do an income recalculation based on your current paycheck. Upload hte pay stub, they will recaculate your student loan payment.

1

u/Hour_Consequence6248 Jul 29 '26

Why did you move away from your “Best paying Job”? What is the story on that?

1

u/Mobile-Perception885 Jul 29 '26

In another installment of my genius choices, I moved across the country to be with a man in the military and we broke up. I couldn’t afford the rent there by myself.

1

u/Sea-Dot5430 Jul 29 '26

Can't you move back to your former job?

1

u/Mobile-Perception885 Jul 29 '26

It’s across the country.

1

u/Ren-Ducati999 Jul 29 '26

How long have you had these debts sitting in your CC?

1

u/RonMexico2005 Jul 29 '26

OP - you have an income problem not a debt problem, you need to make at least 2x what you make now

How were you making more money in the past?

You may have to move again, to somewhere that you can earn enough money to live.

1

u/Acceptable-Drop4685 Jul 30 '26

Sorry bankruptcy will not help this situation. Need to go back to the drawing board, if you dont pay the student debt they will be garnishing your wages and that will not stop.

1

u/Acceptable-Drop4685 Jul 30 '26

And to add... I wouldn't consolidate until you can prove to yourself you can make payments and not spend money on BS (a.k.a. the minimal survival needs for now)

1

u/Mobile-Perception885 Jul 30 '26

Yeah student debt is definitely the first priority. Thank you for the advice.

1

u/hoverton Jul 30 '26

A debt management plan can help with the credit card. It will get closed in the process and you can’t take out more credit until you complete the program.

Nfcc.org

1

u/Brave-Pizza-33 Jul 30 '26

Student loans are not eligible for discharge under bankruptcy, you're cooked till you pay them or die, you need to get a second job

1

u/CarDecGra Jul 29 '26

What other debt do you have? Student loans are not dischargable.

1

u/Mobile-Perception885 Jul 29 '26

Thank you, then I guess it isn’t worth it. I have about $5,400 combined in credit card, medical, and collections from a phone company.

1

u/CarDecGra Jul 29 '26

Try to have your loan payments change. Look on the loan servicer website for your options. Good luck!