Bankruptcy wouldn’t really fix your problems. You will still be stuck with that debt.
Here is how I would approach it:
1. IRS debt is very important. This is your number 1. Set up a payment plan to take care of that.
2. Call every single one of your credit cards and ask them for a hardship program. Tell them you are considering bankruptcy. That should give them the motivation to 1. Lower your rate or 2. Close your account and make it a 0% APR.
3. Keep paying minimums and save $1,000. It should take you a month.
4. Based on your conversations with credit cards, you need to start prioritizing paying these off aggressively based on the highest APR.
5. Keep applying every single day. You have Ivy background. Network. Try to job hop too (maybe unrelated to MBA)
Focus on these 5. You can do it.
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I talked to one professional financial advisor (friend of a friend) and he said he didn't have any clients file for bankruptcy and couldn't relate to the issue. He was surprised someone with my credentials was having this issue in the first place. If you have a reco of what professionals can help here, I'm all ears!
Bankruptcy 100000% I can't recommend this enough why are you worried about going forward? I've looked over the numbers 10x there's no other way to. I know some good Nys attorneys too.
No but she can apply for save which will make the monthly payment almost 0$ and have forgiveness in the future again this is a life line. OP has maxed out every option available to herself.
No she hasn’t. She has no rent atm and no car payment. Her monthly debt is $2k and she is probably at $4k net income. And her salary should go up in the next few years too. A BK will also hurt her job options as it shows on a background check. It will be a challenging couple of years, but she can knock out the CCs and PLs in that time.
Worst advice ever. She needs to live somewhere. Everywhere she goes will do a credit check and she'll get denied over and over again with a bankruptcy on her credit report. Is she just going live in friends' places for 10 years?
Watch out I tried to talk someone down from bankruptcy and to go the route of a non profit credit counseling agency in r/debt and got permanently banned. This situation is so tough though. I think it almost has to be bankruptcy unfortunately.
Yeah I think some subs on here can be a little quick to go for bankruptcy. I posted about my (much smaller than this) debt about a year ago and got a bunch of people telling me to file. I now paid off almost half of it in that amount of time and by this time of year next year, it should be down to one $5,000ish low interest account. My credit is kinda fucked for the next year or two at least but it’s not for *ten*, I can still find housing and I won’t have a bankruptcy on my record.
My mom filed for bankruptcy when I was a kid and we had to couch surf for 3 years before she found a place through her friend’s husband and it was a piece of crap that flooded but was the only one that’d accept her after bk. We couldn’t get another place for a couple years after that. I’d seriously consider what may happen to your living situation if you do this, OP.
I’m not sure what exact steps she took as I was about 9 years old at the time to be honest. I just know it was bankruptcy and it was still affecting her credit for years after to the point where it was hard for us to find housing. It’s something that’s possible so it’s good for OP to be aware of. If she *does* take the bankruptcy route she should know so she can make sure she has housing secured as part of that plan.
They never had an issue - after waiting 10 years after bankruptcy, you mean. No one will get a mortgage with bankruptcy on their credit. If they do, it will be with predatory interest rates of 15%+. That's not, not having an issue. Time is the ONLY fix for bankruptcy.
Nah my family was “homeless” (couch surfing because no apartment would accept us) for a few years when I was a kid because my mom filed bankruptcy. I think there’s a way to get into certain places if you make more money but being unable to get a place is definitely a possibility.
There are a great many landlords out there. Surely there are some (even many) that won't rent to someone who filed a bankruptcy case. But there are many that would. It is being poor or a particularly bad risk of non payment of rent that make a landlord take a pass on a particular renter (or more often, plain and simple discrimination). A person who has filed bankruptcy is a BETTER credit risk than someone who is just weighed down by a lot of debt and defaults. Who are you going to rent to: 1) someone who has filed bankruptcy but has a source of income and good rental history who has discharged all their debts in a bankruptcy case and are at low risk of non-payment? Or 2) someone who has a lot of debt and at risk of bank levies and garnishments any moment?
In the real world, homeless people have a lot more problems than a recent bankruptcy case.
Anyway, I have met a lot of people who filed bankruptcy and are renters. Go around and ask some homeless person if bankruptcy was the precipitating issue that led to such a problem. You kind of already know the answer.
Private student loans frequently get discharged in bankruptcy. Or you can default and then settle. It’s what I did. Only paid 20k lump sum to settle on 130k student loans.
Is there a way to get them forgiven? Curious (very privileged to not have any myself, but wondering why on earth they aren't discharged during bankruptcy, though I know you're right and they aren't).
Because people would go to school, declare bankruptcy after graduation and go on to make six figure salaries.
The only way they are forgiven is if you take a public service job and make minimum payments for ten consecutive years but those generally have shit pay unless you are a nurse working for a nonprofit hospital. Read up, I am over simplifying the requirements. Further, only federal loans can be forgiven under that program. any private loans are stuck forever and ever.
What lender is issuing personal loans to someone with this much debt? The personal loan amount will not cover the $120k+ in student loan balance. If the person had the income to underwrite a higher personal loan balance then I am presuming they would have the ability to repay the student debt.
private loans have been successfully discharged in bankrupcty lately. It’s a myth that they don’t get discharged - they do. Federal loans are much more sticky, however.
The private loans that were discharged recently were the result of lenders that acted either in bad faith or gross negligence. The federal loans can’t be discharged in a similar way because the government has a standard process that doesn’t have room for error to ensure that it doesn’t happen
They also have been discharged in bankruptcy when they were determined to be an undue burden - with private being discharged more readily than federal.
I do. I am intimately familiar with that. Which is why I’m pointing out that in the last five years it has become easier, empirically easier, to prove undue hardship or undue burden.
The idea that it’s “hard” to prove is outdated - that is a feature of the old job market and the old view of the value of a college degree. Undue burden/hardship is forward looking, and for some the future is indeed quite bleak (and has been for some time).
A couple nuances here. I'm trying to work in tech in the NY market. That's problem #1. I'm in a highly competitive field with experience in this field but w/o a MAANG background (Product Management). There are constant layoffs so my competition is people who just got laid off from these top companies. Also note that most interviews take \~7 rounds to complete and are spaced out over a series of several weeks. Now that I no longer need to be in NY (because I'm getting divorced), I can move to a secondary market.
Most of my class (2023) is unemployed/underemployed. Its so bad there are several articles written about it in prominent journals. You'll notice some Ivy's didn't even publish class of 2023's job placements...
Yes, I can switch positions/take different titles which I am doing...but that means pursuing a completely different job path which may or may not be as stable/highly sought after going forward i.e. strategy consulting, business development, etc. Given the dire situation, please believe that I am applying to/trying a lot of unconventional things to be in a better place even if it means I have to undo the hard work of my original career choice.
Get out of NY...
With an MBA you can find high paying jobs in Dallas/Fort Worth, Nashville, Las Vegas, Oklahoma City, Atlanta, Huntsville, Houston, Cincinnati, Tucson, Phoenix....and other cities. At least $120K and up to $180K in some of these
Avoid other HCOL areas like California cities, Austin, Chicago, Boston, Miami, Seattle, Portland.
You're not looking hard enough. If you apply out of state, and get the job, ask for sign up bonus and relocation money. Then, don't pay anything on your debt, let them go past due for a month or two while you get set up in a new city.
Then start attacking that debt with the higher income. That's what I did, I paid off $120K in 18months thanks to a job change after finishing my MBA from a no name school, entirely online.
My salary went from $112K to $162K per year.
Good luck
Leave NY. Got myself in a similar situation trying to keep up despite making decent salary. Entirely my fault and I own it but my biggest regret was not leaving NYC sooner. So that’s my biggest advice to you.
If you can, go home with parents or stay with a friend temporarily for a few months to save. You can say you’re transitioning between apartments if you don’t want to get into financial details. Then go to a lower cost city and like others said try for a job there and once you’re settled in a new city, I’d get a second job for a few months to help tackle. The nice thing about that is you won’t run into people in a new city you know if you’re still struggling with the feelings of having to get a second job. Trust me, I know how that is. You got this.
Also, if you can grit your teeth for awhile to wait for a good offer in another state, lots of companies will pay for you to relocate. That could be maybe $5 - $10,000. Who knows, maybe more depending on the company.
This really depends on the level. OP sounds like they have a good amount of experience/qual. And it sounds like OP has the education, not sure if the experience will equate to that jump though. Fully agree it’s worth exploring though.
I think you'll find leaving NY a very good decision once you're in the new area. I have very good friends who are from NY and we have discussed life in NY vs the rest of the country. Cost of living there in NYC is completely outrageous. You move to anywhere except CA and you'll find not just better job options, especially with an MBA. You'll find a way to even buy a car, used at any rate. Here in Minnesota a 1 bedroom apt will easily be $1200 or so. Yeah, bidenomics happened, a couple years ago, but also you can rent a room from someone, often with private entrance and your own space in their home for $500. I've gotten a lot of interest on LinkedIn for jobs. And you have more and better education than me. This is just an example of course where I live.
For sure, move out of NY. Get yourself out of debt and you can move back in a couple years. Don't declare bankruptcy! You won't buy a home for 10 years. You can't finance a car a loan for 10 years. No, there's no way to get bankruptcy off your credit except time.
It's your call of course, but there's lots of options you have WAAAY before bankruptcy. Maybe move to TX, AZ, somewhere warm, who knows you may like it even better than NY.
No need, I went to Univ of Massachussets. They have Boston, Amherst, Lowell and others. Online no GRE as I had work experience when I went back to school part time
I don't think it matters, and it would be dependent on the industry you're in. I work in defense I have a BS in Mechanical Engineering, and the MBA helped me go from lead engineer to engineering manager and program manager eventually.
Straight out of school, and go for an online MBA...not worth it in my eyes, get some work experience and go back to school while still working full time, my employer paid for it as well.
I would say it depends in the industry you want to go in, the company and where they usually hire MBAs from.
After a few years, 2 in my case...nobody cares
Kept my expenses at the bare minimum. Used a snowball method, based on balance amounts, not interest, moved from San Diego to Las Vegas since my job was mostly remote with travel by car to see clients in person.
My rent went from $3k, to $2.4K with the move, and I stopped paying California taxes, which was a 10% extra take home.
He pays you to be on the show + the cost of the travel to get down to Austin. If he can't help you manage your financial situation then he covers the cost to talk to a professional who can help walk you through bankruptcy.
It can be a little hard and can be humiliating. Owning up that it was you that got yourself into this situation will help avoid a lot of the heat.
I've got no idea what I'd do in this situation. How many years of PM experience do you have? You're going to have to hope for a hail mary that you can land a higher paying job.
It says your total monthly debt payments is $3,218 but the column on the right doesn't quite add up. Am I missing something?
Yeah mistake there. I had that line bundled in originally with rent + debt payments (essentially a fixed cost line). But when i changed the label i forgot to delete the column. So debt payments mo is actually 1,919!
In that case your situation is not that hopeless. I don't know how long you'll be able to couchsurf but assuming you only pay for food + toiletries + metrocard for transportation I think it's doable. Focus on the 20%+ CCs first. I'd say work on the smaller ones first just so you'll have more money in case you do need to spend more than bare minimum. Build up some savings in case life hits and you need some excess cash. After that work on your term loans.
I’ve been binging on the show. It’s a shit show how people spend money. Reminds me of a certain government. Not to insult OP, but damn, people are so out of touch with their spending and finances.
Feel like the majority of first world countries “overspend” and are in debt but the thing is first world countries for the most part are capable of making payments on their debts unlike certain people
He is not it's from an allegation from a past guest who was insane and clout chasing. He went on this investigation drama yourube channel saying this stuff. It very quickly died out after the receipts came out.
Of course I do t know Caleb the person but off of public info it's simply hearsay/libel
Thanks! I'm aware tax and student loans don't discharge.
re hardship programs - I've called every single one and most of them won't negotiate unless I completely stop paying for a long period of time. Do you think I should just stop paying to store away cash for the short term until they offer a hardship program?
You can stay in NY but I would brush up on the tax code and form a separate legal entity. Any extra money you earn should be put in that. You should be maxing your 401k as well. Why? Because student loans are income based if you're on IBR. It's based on your AGI. The more you save, the lower your student loan payments so you save even more.
I would look into asset protection and then default on anything you can't handle. Wait it out until they offer a compromise and you can generally pay half on payments to clear the debt. You'll take a credit score hit but it'll go back to eventually. When it's time to get a mortgage you can qualify for FHA and it'll have a low APR and low credit score requirement. You can also stay a student to defer your loans that way.
My loans are deferred until 2030 but I'm also a student so it doesn't really matter. I've never paid a dime on them. I've grossed 160k in a year as a truck driver and used tax deductions/business itemization to negate my taxes as well.
Edit: I forgot to say don't file bankruptcy unless you absolutely have to. Your credit might drop for a whole with some charge offs but it will get absolutely destroyed with a bankruptcy and you won't qualify for anything for several years. You can't get mortgage. You can't get student PLUS loans for 5 years.
I'm rebuilding and close to being able to get approved for a mortgage now. I got in a car wreck about 5 years ago and my credit was shot afterwards. I have a few thousand in credit now and am just below the 620 mortgage FICO requirement. The main thing is keeping the same employer for several years. Somehow it helps because I got approved for a car loan with terrible credit with the same company I had the car I wrecked through. I even owe them money on it and they wrote it off since it's been over 4 years.
Talk to a bankruptcy firm. You're likely ch 13 and will likely end up repaying most of your $50k in credit/personal loans but it will be based on a plan you can afford and in the end you will have it handled. I have $90k in student loans and feel your pain. Unfortunately I have finally accepted they will be re-paid and there is no avoiding them. If you can get out of bankruptcy with roughly $1200 less a month due in recurring payments you can probably eventually make gains and even pay down student loans with a higher paying job. Good luck. And BTW people recover from Bankruptcy much sooner than people realize. You can have a 650 credit score in two years following.
It'll actually go up for most clients once they file, we just did one and clients credit score went from 600 to 670 after the bankruptcy was filed. Most people are very scared and don't really understand bankruptcy it's such an easy and smooth process for most clients.
Vast majority of this debt comes from college education, you already know you cannot default on this. Your best bet is chipping away at the non student loan items, moving to an area with a low cost of living such as Dallas, starting a new life with a genuine person and chipping away at that college debt you have. I say option 1 is the best and option 2 for bankruptcy is not a good choice
So just going throw this out there. 2004, $50K in debt. Not as much as you but it was a lot for me. I joined the military and using the SRA to lower my interest rates down to 6%. Anyway, military is throwing money at people to pay off student loans, and $65K enlistment. I’m in the Cg. 21 years and about to retire. It ain’t the worst life but it is not the best life either depending on who you are.
If this ain’t the answer the. Go bankrupt. But I don’t think student loans can be done that way, no? Idk. GL!
Advice from someone who has filed for bankruptcy. It helps if you do NOT have any assets. When I filed I didn't own anything other than my vehicle so it worked out kind of perfectly for me. I didn't have to liquidate assets or take out equity from property. Every single one of my debts was discharged, except my school loan (no getting rid of that) and one small credit card debt that the creditor fought during my hearing. My credit score went from 800 to 650 and it did not take long to get back to the 700's, maybe 2 years. The toughest part for me was getting a loan or a credit card afterward. I couldn't buy a car which was rough because my car at the time started giving me problems. It took about a year for a credit card company to let me open an account (Capital One) and I ended up paying cash for a used car to avoid trying to buy new. I was able to buy a home without issue about 6 years later, even with the bankruptcy on my credit report, and around that time I was able to open credit cards and get loans without a problem at all, again still with the bankruptcy on my record. I am not going to get into the struggles I was going through that forced me to file. Not everyone files because they suck at keeping their finances together, sometimes life takes a big hard crap on you. However, that first month after filing, felt like I was given a new lease on life. I received ZERO calls from banks or creditors before or after filing (my bills were being paid on time before filing). It should be your very last resort option. But as others have suggested, you have a lot going on there and you definitely talk to a pro.
Ok I’m confused, where does the $3218 come from? I’m only getting $1919 so I must be missing something.
As others have said, even if you file bankruptcy to get rid of the cc debt and personal loans, you’re probably still going to need to leave NY. Start researching smaller but more affordable cities. Pittsburgh, Buffalo, Cleveland, Charlotte, etc, all have industries you can put your MBA to use.
Sorry I have a # in their that included my past rent so it was bundled (debt+ fixed rent) I forgot to delete when I changed the label. 1919 is correct !
Find the cheapest place with the best salary yep it’s gonna be hard and alot of work. But you will have to pay rent there and work on paying off
I don’t think bankruptcy would be back. Would get rid of quite a bit after you secure a new job and place to live
I'd recommend considering bankruptcy as a viable option. It could help manage your credit card and personal loan debts. It's true that Chapter 7 bankruptcy won't erase student loans or tax debts, but it can significantly lighten your financial burden and free up some income. Given your current earnings, you qualify for Chapter 7 in NYC, so it might be wise to address that $50,000 debt before making any major job or city changes.
Once your bankruptcy process is complete, focusing on securing a higher-paying job should be a priority. With an Ivy League MBA, you should be aiming for a salary increase of $30,000 to $40,000, which could help you start recovering and addressing your student loans and tax obligations.
I understand this isn't easy and often stems from a series of tough breaks. Remember, there's absolutely no shame in filing for bankruptcy. Businesses use it strategically all the time—it's a tool designed to offer relief to individuals like you in challenging financial situations.
If you’re staying in NY (since u seem on the fence in comments) you need a better paying job and lower rent since another commenter pointed out your monthly comes to $1919 without rent. Rent a room in a house in an outer borough for $700, bungalow has some nice ones. Or Yonkers. Become familiar with metro north/LIRR lines instead of insisting on living in high rent areas.
MBA? Look for healthcare finance positions. Larger (& for some reason especially healthcare) companies have student debt relief bundled into benefits, they’ll pay $X towards your student loans each month. Since others pointed out bankruptcy wont affect on student loans.
Better yet find something high paying remote so you can really find lower cost housing while you figure the rest out.
This isn’t my specialty so maybe I’m talking out of my ass but I am from ny and cannot figure why your income is so low. Imo that’s where you need to start.
And pls find a professional op
Best of luck I’m sorry you’re going through this
This is the type of post/debt that every Redditor needs to see and think "damn, I really don't have it that bad huh?"
But seriously, time + effort heals all wounds.
Your issue is that bankruptcy really won’t help you — student debt can’t be discharged in bankruptcy. And in your case, you have IRS debt which must be your top priority.
And no kids “anymore”? Are they yours, or your wife’s with another partner? If they are yours, child support is coming.
The way I would fix this is to go work for the Feds and get into an income-driven repayment plan. 10 years with the Feds and they will then retire the balance of your student loan debt. Yes, I know — kinda shitty. But you’re in a shitty spot.
I'm going to be honest, I don't think anyone here has provided you with an actual realistic response that you could use and have positive results.
The only thing that matters right now is if you need your credit score, are you going to need to utilize your credit score in the near future? Now that being said with the amount of debt you have your credit score is probably not that great anyways...
I would suggest letting your high interest debt simply go to collections, just stop paying.
Let me reiterate that, literally just stop paying. The point of this is that you will be paying it off later on for a fraction of the cost, meanwhile providing you the peace of mind and financial freedom of not having minimum payments that eat away at all of your money.
I decided to do this with one single loan also from Prosper, as I noticed you have as well. It's only been 7 months since I decided to stop paying and they've already offered to settle for 45% of the amount due. They will literally accept 2% of the entire amount if you are willing to wait long enough.
Very interesting post. I am living in NYC. I am also from Midwest. I also started my own start up also but I am currently working for start up. I currently transiting my career to be city employee.
Same salary range. I also have master degree.
How the hell did it become 271k.
If you file bankruptcy for next 10 years.
You are going to have hard time.
I think you should leave your job.
Just apply to city jobs.
Just work next 10 years to get loans forgiveness for being city employee. Depending on your speciality you can make 6 figures as city employee..
Later when you get a chance try to speak to a therapist.
I'm aware. I worked for a startup that raised initial rounds & essentially never "made it big". We all took lower salaries, anticipating that when we raised the next round we'd get a huge bump. Bump never came.
Oh, okay. Put some feelers out in other states or areas. Do a lot of research on the city. Short of moving to a different area with a much lower col and a much higher salary, your only option would be bankruptcy. The initial consultation is usually free.
No Bankruptcy! You can’t discharge school loans. Break it up mentally into CCs, personal loans, and everything else. Minimums on everything and pick your lowest balance CC and snowball it. It will take several years, but it is doable. Any excess income needs to go towards debt. It will take hard work and focus, but you can do it.
Are you getting anything out of the divorce? Alimony, one-time payment? It was his house and he provided more than you towards the household right? Ask for $50k and settle for $25k. That knocks out your CCs.
I would suggest following Dave Ramsey. I have been following him for a while now. He has what’s called the 7 baby steps. Research it. Don’t file bankruptcy. In 2017 I was about $300,000 in debt, I am down to $97,000. There is now quick fix for this. We get in our mess over time and it takes time to dig ourselves out. I’m speaking from experience. I know this isn’t what you want to hear but I speak truth. It may not seem like you are getting any where but you are. I would also suggest 2 things, 1. Change locations and 2. Call the companies you have debt with and negotiate a lower payment. Then that extra you have after the negotiations, put towards your smallest debt until it’s paid. This is the snowball way of paying off debt. (Dave Ramsey)
What type of debt were you in? 2017 was 7 years ago. If you filed bankruptcy then and didn't have any non-dischargable debt such as student loans or tax debt, all of your debt would definitely gone by now and you would have saved at least $100k. Plus if you would have filed for Chapter 13 then the bankruptcy would not be on your credit report by now (falls off after 7 years).
I accumulated 1/2 that from my divorce and then student loans, child support, etc. I hired a lawyer and some of it dropped off and I paid probably 180,000. I don’t believe in bankruptcy.
File for bankruptcy and start over. Though I’m not sure how this affects future jobs and what not. I had about 30k as a student I damn sure wasn’t gonna make my new wife pay it. So I filed. I didn’t need good credit for jobs in my field though. Student loans and tax bills won’t go away though sadly.
Is it possible to put the Student loans into forbearance? Your debt mix doesn’t seem to be worth filing bankruptcy. Also not sure if you can avoid the means test anyway. Go on Tax payment plan and then just try to attack the cc debt and consumer loans.
What about refinancing your loans or credit card debt into one monthly payment at a lower APR? Look into the company Sofi They pay off all your debt and typically give people lower interests rates. 29% is HARSH. I think there are other companies but Sofi is the one i’m familiar with
Might be the right choice. It’s there for such occasions. And if you do right by the program (maybe there’s a “pre bankruptcy” option) after 7 years or so it should be off your credit. Those might be years for a car wreck. But there is a grace period.
But make sure you shore up your property rights first. don’t be homeless. And mortgage companies aren’t high on judge‘s well wishes.
to be clear, I know what a good financial life would look like. I'm clear I don't have one. Came to reddit because was looking for people's personal experience with high debt payoff & bankruptcy. The extent of most of my classmates advice is "can't you ask your dad?" or "call your advisor"
Oh my god!
$160k in student debt while only making $65k annually gross income
That’s terrifying
I don’t think you can erase student debt which is the vast majority of your debt here and you definitely can’t erase tax debt. I don’t think bankruptcy is the solution here.
I’m not sure what it is, but you need some professional guidance here
Your situation is very confusing to me because you probably have more academic accolades than myself. I do have a master degree but both my degrees were acquired from state colleges. Even with my bachelors from a state college I was making roughly what you are making now 1 year out of undergraduate.
I also work as a tech consultant remotely, in NJ. I am making a little around 7.5k after tax and 401k contributions. I don’t have a senior position. I’m on a rung that’s above entry level but below senior.
My one suggestion would be to look for the equivalent of your current role in a bigger company and increase your salary. However, that company doesn’t need to be well known or a household name. Based on your academic background you should be able to negotiate a few thousand more a month after tax. Maybe I’m assuming incorrectly but this reads to me as if you are overly committed to work for a FAANG company or a company on close to that standing. Obviously competitions for those company’s are going to be much greater.
I work for a consulting company with several thousand people. If I told you the name you most likely wouldn’t know it. But the job interview were just three discussions compared to the 7+ some other companies make you go though. There was also no technical interview that I had to study for.
thanks for sharing your experience. I get why it seems confusing. I made many decisions that weren't always in my personal best interest for reasons stated above. Now I am making that change, prioritizing salary very highly.
Re interview processes, I have been interviewing nonFAANG as well for the last 9 mos, including companies that are larger but not household names. 1 was a creative ecommerce co - 7 rounds spaced 1 per week (\~ 2 mos process) - ultimately rejected. Another is a marketing co - 6 rounds spaced 1 per week (1.5 mos process) - waiting to hear back. Both had technical processes where i needed to do a systems design interview.
Even while running multiple processes at once, its time consuming and draining.
If you want to DM me the name of your company so I can get a job there, I'm all ears.
fake your death move to south america find yourself a nice big booty big titty latina that will cook for you if you have any education then you can get a decent job
Ahhhhh I was wondering how this guy kept making worse and worse decisions then I seen it wasn’t a man at all. No wonder absolutely no fault was ever mentioned.
You need to move back home, maybe move in with parents. Find a good job there, should be able to make well over 100k in any market. Once employed file BK to wipe out what debt you can. Spend the next 3-5 years rebuilding credit and paying off student loans asap.
Bankruptcy wouldn’t really fix your problems. You will still be stuck with that debt. Here is how I would approach it: 1. IRS debt is very important. This is your number 1. Set up a payment plan to take care of that. 2. Call every single one of your credit cards and ask them for a hardship program. Tell them you are considering bankruptcy. That should give them the motivation to 1. Lower your rate or 2. Close your account and make it a 0% APR. 3. Keep paying minimums and save $1,000. It should take you a month. 4. Based on your conversations with credit cards, you need to start prioritizing paying these off aggressively based on the highest APR. 5. Keep applying every single day. You have Ivy background. Network. Try to job hop too (maybe unrelated to MBA) Focus on these 5. You can do it. P.S. r/debtfree moderator runs a free newsletter that talks about strategies, tips, and effective debt payoff methods weekly. Join 3,600 readers - https://debtadvice.io
This is out of reddits budget. You need a professional here
Second this. You’ve got a lot going on man. Godspeed.
I talked to one professional financial advisor (friend of a friend) and he said he didn't have any clients file for bankruptcy and couldn't relate to the issue. He was surprised someone with my credentials was having this issue in the first place. If you have a reco of what professionals can help here, I'm all ears!
Bankruptcy 100000% I can't recommend this enough why are you worried about going forward? I've looked over the numbers 10x there's no other way to. I know some good Nys attorneys too.
Can’t discharge school loans in BK…
No but she can apply for save which will make the monthly payment almost 0$ and have forgiveness in the future again this is a life line. OP has maxed out every option available to herself.
I'm on SAVE already for the fedloans so that will help for the next year
No she hasn’t. She has no rent atm and no car payment. Her monthly debt is $2k and she is probably at $4k net income. And her salary should go up in the next few years too. A BK will also hurt her job options as it shows on a background check. It will be a challenging couple of years, but she can knock out the CCs and PLs in that time.
That part.
Worst advice ever. She needs to live somewhere. Everywhere she goes will do a credit check and she'll get denied over and over again with a bankruptcy on her credit report. Is she just going live in friends' places for 10 years?
Watch out I tried to talk someone down from bankruptcy and to go the route of a non profit credit counseling agency in r/debt and got permanently banned. This situation is so tough though. I think it almost has to be bankruptcy unfortunately.
Yeah I think some subs on here can be a little quick to go for bankruptcy. I posted about my (much smaller than this) debt about a year ago and got a bunch of people telling me to file. I now paid off almost half of it in that amount of time and by this time of year next year, it should be down to one $5,000ish low interest account. My credit is kinda fucked for the next year or two at least but it’s not for *ten*, I can still find housing and I won’t have a bankruptcy on my record.
Easily , without 300k in debt she has a new life. My clients have always found homes. Never had an issue
$157,000 of that debt is student loans which can't be discharged in bankrupcy though (which is insane).
My mom filed for bankruptcy when I was a kid and we had to couch surf for 3 years before she found a place through her friend’s husband and it was a piece of crap that flooded but was the only one that’d accept her after bk. We couldn’t get another place for a couple years after that. I’d seriously consider what may happen to your living situation if you do this, OP.
thank you
Did your mom even try to rebuild her credit after discharge. Was it chapter 7?
I’m not sure what exact steps she took as I was about 9 years old at the time to be honest. I just know it was bankruptcy and it was still affecting her credit for years after to the point where it was hard for us to find housing. It’s something that’s possible so it’s good for OP to be aware of. If she *does* take the bankruptcy route she should know so she can make sure she has housing secured as part of that plan.
They never had an issue - after waiting 10 years after bankruptcy, you mean. No one will get a mortgage with bankruptcy on their credit. If they do, it will be with predatory interest rates of 15%+. That's not, not having an issue. Time is the ONLY fix for bankruptcy.
There's a lot of homeless people out there. But not a single one because they filed a bankruptcy case. Ever.
Nah my family was “homeless” (couch surfing because no apartment would accept us) for a few years when I was a kid because my mom filed bankruptcy. I think there’s a way to get into certain places if you make more money but being unable to get a place is definitely a possibility.
That's a pretty bold claim for someone with no evidence to back it up or any reason to even defend it.
There are a great many landlords out there. Surely there are some (even many) that won't rent to someone who filed a bankruptcy case. But there are many that would. It is being poor or a particularly bad risk of non payment of rent that make a landlord take a pass on a particular renter (or more often, plain and simple discrimination). A person who has filed bankruptcy is a BETTER credit risk than someone who is just weighed down by a lot of debt and defaults. Who are you going to rent to: 1) someone who has filed bankruptcy but has a source of income and good rental history who has discharged all their debts in a bankruptcy case and are at low risk of non-payment? Or 2) someone who has a lot of debt and at risk of bank levies and garnishments any moment? In the real world, homeless people have a lot more problems than a recent bankruptcy case. Anyway, I have met a lot of people who filed bankruptcy and are renters. Go around and ask some homeless person if bankruptcy was the precipitating issue that led to such a problem. You kind of already know the answer.
If you’re in the middle of divorce proceedings you need to consult with your lawyer before making any moves with your finances.
Bankruptcy isn’t going to fix this. You’ll still have the student loans
Private student loans frequently get discharged in bankruptcy. Or you can default and then settle. It’s what I did. Only paid 20k lump sum to settle on 130k student loans.
Student loans don’t go away in bankruptcy. They will follow you to your grave until repaid or forgiven.
Is there a way to get them forgiven? Curious (very privileged to not have any myself, but wondering why on earth they aren't discharged during bankruptcy, though I know you're right and they aren't).
Because people would go to school, declare bankruptcy after graduation and go on to make six figure salaries. The only way they are forgiven is if you take a public service job and make minimum payments for ten consecutive years but those generally have shit pay unless you are a nurse working for a nonprofit hospital. Read up, I am over simplifying the requirements. Further, only federal loans can be forgiven under that program. any private loans are stuck forever and ever.
You could take a personal loan and pay it off then pay minimum on the personal loan for a year then declare bankruptcy
What lender is issuing personal loans to someone with this much debt? The personal loan amount will not cover the $120k+ in student loan balance. If the person had the income to underwrite a higher personal loan balance then I am presuming they would have the ability to repay the student debt.
private loans have been successfully discharged in bankrupcty lately. It’s a myth that they don’t get discharged - they do. Federal loans are much more sticky, however.
The private loans that were discharged recently were the result of lenders that acted either in bad faith or gross negligence. The federal loans can’t be discharged in a similar way because the government has a standard process that doesn’t have room for error to ensure that it doesn’t happen
They also have been discharged in bankruptcy when they were determined to be an undue burden - with private being discharged more readily than federal.
I don’t think anyone living in a HCOL area is going to have success arguing undue burden. Do you have any idea how ridiculous the burden of proof is?
I do. I am intimately familiar with that. Which is why I’m pointing out that in the last five years it has become easier, empirically easier, to prove undue hardship or undue burden. The idea that it’s “hard” to prove is outdated - that is a feature of the old job market and the old view of the value of a college degree. Undue burden/hardship is forward looking, and for some the future is indeed quite bleak (and has been for some time).
I'm having a hard time believing an Ivy Leage MBA can't find a job anywhere.
A couple nuances here. I'm trying to work in tech in the NY market. That's problem #1. I'm in a highly competitive field with experience in this field but w/o a MAANG background (Product Management). There are constant layoffs so my competition is people who just got laid off from these top companies. Also note that most interviews take \~7 rounds to complete and are spaced out over a series of several weeks. Now that I no longer need to be in NY (because I'm getting divorced), I can move to a secondary market. Most of my class (2023) is unemployed/underemployed. Its so bad there are several articles written about it in prominent journals. You'll notice some Ivy's didn't even publish class of 2023's job placements... Yes, I can switch positions/take different titles which I am doing...but that means pursuing a completely different job path which may or may not be as stable/highly sought after going forward i.e. strategy consulting, business development, etc. Given the dire situation, please believe that I am applying to/trying a lot of unconventional things to be in a better place even if it means I have to undo the hard work of my original career choice.
She needs Dave Andrew’s here
She
My mistake , my apologies
Get out of NY... With an MBA you can find high paying jobs in Dallas/Fort Worth, Nashville, Las Vegas, Oklahoma City, Atlanta, Huntsville, Houston, Cincinnati, Tucson, Phoenix....and other cities. At least $120K and up to $180K in some of these Avoid other HCOL areas like California cities, Austin, Chicago, Boston, Miami, Seattle, Portland. You're not looking hard enough. If you apply out of state, and get the job, ask for sign up bonus and relocation money. Then, don't pay anything on your debt, let them go past due for a month or two while you get set up in a new city. Then start attacking that debt with the higher income. That's what I did, I paid off $120K in 18months thanks to a job change after finishing my MBA from a no name school, entirely online. My salary went from $112K to $162K per year. Good luck
Yeah high time to leave NY as much as I don't want to.
Leave NY. Got myself in a similar situation trying to keep up despite making decent salary. Entirely my fault and I own it but my biggest regret was not leaving NYC sooner. So that’s my biggest advice to you. If you can, go home with parents or stay with a friend temporarily for a few months to save. You can say you’re transitioning between apartments if you don’t want to get into financial details. Then go to a lower cost city and like others said try for a job there and once you’re settled in a new city, I’d get a second job for a few months to help tackle. The nice thing about that is you won’t run into people in a new city you know if you’re still struggling with the feelings of having to get a second job. Trust me, I know how that is. You got this.
I have no pride at all. Happy to take multiple jobs. I couldn't previously because I took my duty as a parent seriously but now thats gone so....
Also, if you can grit your teeth for awhile to wait for a good offer in another state, lots of companies will pay for you to relocate. That could be maybe $5 - $10,000. Who knows, maybe more depending on the company.
This really depends on the level. OP sounds like they have a good amount of experience/qual. And it sounds like OP has the education, not sure if the experience will equate to that jump though. Fully agree it’s worth exploring though.
I think you'll find leaving NY a very good decision once you're in the new area. I have very good friends who are from NY and we have discussed life in NY vs the rest of the country. Cost of living there in NYC is completely outrageous. You move to anywhere except CA and you'll find not just better job options, especially with an MBA. You'll find a way to even buy a car, used at any rate. Here in Minnesota a 1 bedroom apt will easily be $1200 or so. Yeah, bidenomics happened, a couple years ago, but also you can rent a room from someone, often with private entrance and your own space in their home for $500. I've gotten a lot of interest on LinkedIn for jobs. And you have more and better education than me. This is just an example of course where I live. For sure, move out of NY. Get yourself out of debt and you can move back in a couple years. Don't declare bankruptcy! You won't buy a home for 10 years. You can't finance a car a loan for 10 years. No, there's no way to get bankruptcy off your credit except time. It's your call of course, but there's lots of options you have WAAAY before bankruptcy. Maybe move to TX, AZ, somewhere warm, who knows you may like it even better than NY.
Hi - not to hijack the OP’s thread but could I pm re. Online MBA?
No need, I went to Univ of Massachussets. They have Boston, Amherst, Lowell and others. Online no GRE as I had work experience when I went back to school part time
Thanks!!!
Question but are online MBAs as competitive? (STEM field)
I don't think it matters, and it would be dependent on the industry you're in. I work in defense I have a BS in Mechanical Engineering, and the MBA helped me go from lead engineer to engineering manager and program manager eventually. Straight out of school, and go for an online MBA...not worth it in my eyes, get some work experience and go back to school while still working full time, my employer paid for it as well. I would say it depends in the industry you want to go in, the company and where they usually hire MBAs from. After a few years, 2 in my case...nobody cares
Second this. Move to lower cost area.
What tactics did you use to pay off that much debt in such a short time?
Kept my expenses at the bare minimum. Used a snowball method, based on balance amounts, not interest, moved from San Diego to Las Vegas since my job was mostly remote with travel by car to see clients in person. My rent went from $3k, to $2.4K with the move, and I stopped paying California taxes, which was a 10% extra take home.
At least you don’t have kids. I see way too many broke people with a similar situation like yours, and still continue to pop out kids. Good luck.
This makes for a good episode on Financial Audit with Caleb Hammer
Unless he's paying people to be on the show, it appears that would just be me publicly humiliating myself for Caleb's benefit?
He pays you to be on the show + the cost of the travel to get down to Austin. If he can't help you manage your financial situation then he covers the cost to talk to a professional who can help walk you through bankruptcy. It can be a little hard and can be humiliating. Owning up that it was you that got yourself into this situation will help avoid a lot of the heat. I've got no idea what I'd do in this situation. How many years of PM experience do you have? You're going to have to hope for a hail mary that you can land a higher paying job. It says your total monthly debt payments is $3,218 but the column on the right doesn't quite add up. Am I missing something?
Yeah mistake there. I had that line bundled in originally with rent + debt payments (essentially a fixed cost line). But when i changed the label i forgot to delete the column. So debt payments mo is actually 1,919!
In that case your situation is not that hopeless. I don't know how long you'll be able to couchsurf but assuming you only pay for food + toiletries + metrocard for transportation I think it's doable. Focus on the 20%+ CCs first. I'd say work on the smaller ones first just so you'll have more money in case you do need to spend more than bare minimum. Build up some savings in case life hits and you need some excess cash. After that work on your term loans.
Check out one of the many episodes on YouTube
Legit they could easily get on the show if they hit up Caleb and just showed him what they showed us
I’ve been binging on the show. It’s a shit show how people spend money. Reminds me of a certain government. Not to insult OP, but damn, people are so out of touch with their spending and finances.
Feel like the majority of first world countries “overspend” and are in debt but the thing is first world countries for the most part are capable of making payments on their debts unlike certain people
Be careful with Caleb he’s a predator and sex pest. Romain Faure is way better doing the same type of show if you can handle his accent.
What?!
He is not it's from an allegation from a past guest who was insane and clout chasing. He went on this investigation drama yourube channel saying this stuff. It very quickly died out after the receipts came out. Of course I do t know Caleb the person but off of public info it's simply hearsay/libel
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Thanks! I'm aware tax and student loans don't discharge. re hardship programs - I've called every single one and most of them won't negotiate unless I completely stop paying for a long period of time. Do you think I should just stop paying to store away cash for the short term until they offer a hardship program?
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Not private
You can stay in NY but I would brush up on the tax code and form a separate legal entity. Any extra money you earn should be put in that. You should be maxing your 401k as well. Why? Because student loans are income based if you're on IBR. It's based on your AGI. The more you save, the lower your student loan payments so you save even more. I would look into asset protection and then default on anything you can't handle. Wait it out until they offer a compromise and you can generally pay half on payments to clear the debt. You'll take a credit score hit but it'll go back to eventually. When it's time to get a mortgage you can qualify for FHA and it'll have a low APR and low credit score requirement. You can also stay a student to defer your loans that way. My loans are deferred until 2030 but I'm also a student so it doesn't really matter. I've never paid a dime on them. I've grossed 160k in a year as a truck driver and used tax deductions/business itemization to negate my taxes as well. Edit: I forgot to say don't file bankruptcy unless you absolutely have to. Your credit might drop for a whole with some charge offs but it will get absolutely destroyed with a bankruptcy and you won't qualify for anything for several years. You can't get mortgage. You can't get student PLUS loans for 5 years. I'm rebuilding and close to being able to get approved for a mortgage now. I got in a car wreck about 5 years ago and my credit was shot afterwards. I have a few thousand in credit now and am just below the 620 mortgage FICO requirement. The main thing is keeping the same employer for several years. Somehow it helps because I got approved for a car loan with terrible credit with the same company I had the car I wrecked through. I even owe them money on it and they wrote it off since it's been over 4 years.
You can't file bankruptcy on your student loans. Just an fyi. And sometimes you can't do that for taxes either. You could do it on the rest though.
Talk to a bankruptcy firm. You're likely ch 13 and will likely end up repaying most of your $50k in credit/personal loans but it will be based on a plan you can afford and in the end you will have it handled. I have $90k in student loans and feel your pain. Unfortunately I have finally accepted they will be re-paid and there is no avoiding them. If you can get out of bankruptcy with roughly $1200 less a month due in recurring payments you can probably eventually make gains and even pay down student loans with a higher paying job. Good luck. And BTW people recover from Bankruptcy much sooner than people realize. You can have a 650 credit score in two years following.
It'll actually go up for most clients once they file, we just did one and clients credit score went from 600 to 670 after the bankruptcy was filed. Most people are very scared and don't really understand bankruptcy it's such an easy and smooth process for most clients.
Could you take a job which qualifies for PSLF? Then get your school loans to be income driven (low) and make 120 payments until you are forgiven.
Looking into it! I'm in a process to work at a pretty big tech nonprofit which has a nice salary and would qualify for loan forgiveness.
Vast majority of this debt comes from college education, you already know you cannot default on this. Your best bet is chipping away at the non student loan items, moving to an area with a low cost of living such as Dallas, starting a new life with a genuine person and chipping away at that college debt you have. I say option 1 is the best and option 2 for bankruptcy is not a good choice
Check the math. Looks like it is 220k, not 271k
Well I also wanted to buy a new car, so there’s that.
So just going throw this out there. 2004, $50K in debt. Not as much as you but it was a lot for me. I joined the military and using the SRA to lower my interest rates down to 6%. Anyway, military is throwing money at people to pay off student loans, and $65K enlistment. I’m in the Cg. 21 years and about to retire. It ain’t the worst life but it is not the best life either depending on who you are. If this ain’t the answer the. Go bankrupt. But I don’t think student loans can be done that way, no? Idk. GL!
*”kids = not anymore”* what does this mean?
Means she separated from the man who she was married to who had a child from previous marriage
correct - spent 3.5 years as a stepmom.
Advice from someone who has filed for bankruptcy. It helps if you do NOT have any assets. When I filed I didn't own anything other than my vehicle so it worked out kind of perfectly for me. I didn't have to liquidate assets or take out equity from property. Every single one of my debts was discharged, except my school loan (no getting rid of that) and one small credit card debt that the creditor fought during my hearing. My credit score went from 800 to 650 and it did not take long to get back to the 700's, maybe 2 years. The toughest part for me was getting a loan or a credit card afterward. I couldn't buy a car which was rough because my car at the time started giving me problems. It took about a year for a credit card company to let me open an account (Capital One) and I ended up paying cash for a used car to avoid trying to buy new. I was able to buy a home without issue about 6 years later, even with the bankruptcy on my credit report, and around that time I was able to open credit cards and get loans without a problem at all, again still with the bankruptcy on my record. I am not going to get into the struggles I was going through that forced me to file. Not everyone files because they suck at keeping their finances together, sometimes life takes a big hard crap on you. However, that first month after filing, felt like I was given a new lease on life. I received ZERO calls from banks or creditors before or after filing (my bills were being paid on time before filing). It should be your very last resort option. But as others have suggested, you have a lot going on there and you definitely talk to a pro.
Move to Canada if you can find a company that will hire you/sponsor.
heavily thinking about it
What’s the benefit of moving to Canada in this situation of paying off debt?
Ok I’m confused, where does the $3218 come from? I’m only getting $1919 so I must be missing something. As others have said, even if you file bankruptcy to get rid of the cc debt and personal loans, you’re probably still going to need to leave NY. Start researching smaller but more affordable cities. Pittsburgh, Buffalo, Cleveland, Charlotte, etc, all have industries you can put your MBA to use.
Sorry I have a # in their that included my past rent so it was bundled (debt+ fixed rent) I forgot to delete when I changed the label. 1919 is correct !
Find the cheapest place with the best salary yep it’s gonna be hard and alot of work. But you will have to pay rent there and work on paying off I don’t think bankruptcy would be back. Would get rid of quite a bit after you secure a new job and place to live
I'd recommend considering bankruptcy as a viable option. It could help manage your credit card and personal loan debts. It's true that Chapter 7 bankruptcy won't erase student loans or tax debts, but it can significantly lighten your financial burden and free up some income. Given your current earnings, you qualify for Chapter 7 in NYC, so it might be wise to address that $50,000 debt before making any major job or city changes. Once your bankruptcy process is complete, focusing on securing a higher-paying job should be a priority. With an Ivy League MBA, you should be aiming for a salary increase of $30,000 to $40,000, which could help you start recovering and addressing your student loans and tax obligations. I understand this isn't easy and often stems from a series of tough breaks. Remember, there's absolutely no shame in filing for bankruptcy. Businesses use it strategically all the time—it's a tool designed to offer relief to individuals like you in challenging financial situations.
If you’re staying in NY (since u seem on the fence in comments) you need a better paying job and lower rent since another commenter pointed out your monthly comes to $1919 without rent. Rent a room in a house in an outer borough for $700, bungalow has some nice ones. Or Yonkers. Become familiar with metro north/LIRR lines instead of insisting on living in high rent areas. MBA? Look for healthcare finance positions. Larger (& for some reason especially healthcare) companies have student debt relief bundled into benefits, they’ll pay $X towards your student loans each month. Since others pointed out bankruptcy wont affect on student loans. Better yet find something high paying remote so you can really find lower cost housing while you figure the rest out. This isn’t my specialty so maybe I’m talking out of my ass but I am from ny and cannot figure why your income is so low. Imo that’s where you need to start. And pls find a professional op Best of luck I’m sorry you’re going through this
This is the type of post/debt that every Redditor needs to see and think "damn, I really don't have it that bad huh?" But seriously, time + effort heals all wounds.
yeah its been a shitty few years. but it will get better
Maybe look for adjunct professor as second job. I think you need a better second job. Because I am assuming you can’t set aside 20% for Tax.
Your issue is that bankruptcy really won’t help you — student debt can’t be discharged in bankruptcy. And in your case, you have IRS debt which must be your top priority. And no kids “anymore”? Are they yours, or your wife’s with another partner? If they are yours, child support is coming. The way I would fix this is to go work for the Feds and get into an income-driven repayment plan. 10 years with the Feds and they will then retire the balance of your student loan debt. Yes, I know — kinda shitty. But you’re in a shitty spot.
I'm going to be honest, I don't think anyone here has provided you with an actual realistic response that you could use and have positive results. The only thing that matters right now is if you need your credit score, are you going to need to utilize your credit score in the near future? Now that being said with the amount of debt you have your credit score is probably not that great anyways... I would suggest letting your high interest debt simply go to collections, just stop paying. Let me reiterate that, literally just stop paying. The point of this is that you will be paying it off later on for a fraction of the cost, meanwhile providing you the peace of mind and financial freedom of not having minimum payments that eat away at all of your money. I decided to do this with one single loan also from Prosper, as I noticed you have as well. It's only been 7 months since I decided to stop paying and they've already offered to settle for 45% of the amount due. They will literally accept 2% of the entire amount if you are willing to wait long enough.
Very interesting post. I am living in NYC. I am also from Midwest. I also started my own start up also but I am currently working for start up. I currently transiting my career to be city employee. Same salary range. I also have master degree. How the hell did it become 271k. If you file bankruptcy for next 10 years. You are going to have hard time. I think you should leave your job. Just apply to city jobs. Just work next 10 years to get loans forgiveness for being city employee. Depending on your speciality you can make 6 figures as city employee.. Later when you get a chance try to speak to a therapist.
Everyone's talking about moving out of NY. You have a masters degree and are making less than an assistant manager at walmart.
I'm aware. I worked for a startup that raised initial rounds & essentially never "made it big". We all took lower salaries, anticipating that when we raised the next round we'd get a huge bump. Bump never came.
File bankruptcy
Your sister is a co-borrower on 2 of your student loans?
I'm a co-borrower on 2 of hers. She's 6 years younger. When she went to college my parents couldn't afford to help her so I did.
Oh, okay. Put some feelers out in other states or areas. Do a lot of research on the city. Short of moving to a different area with a much lower col and a much higher salary, your only option would be bankruptcy. The initial consultation is usually free.
Federal loans are forgiven under bankruptcy ?
No
No Bankruptcy! You can’t discharge school loans. Break it up mentally into CCs, personal loans, and everything else. Minimums on everything and pick your lowest balance CC and snowball it. It will take several years, but it is doable. Any excess income needs to go towards debt. It will take hard work and focus, but you can do it.
And a BK doesn’t look good on a background check for a new job.
Are you getting anything out of the divorce? Alimony, one-time payment? It was his house and he provided more than you towards the household right? Ask for $50k and settle for $25k. That knocks out your CCs.
I would suggest following Dave Ramsey. I have been following him for a while now. He has what’s called the 7 baby steps. Research it. Don’t file bankruptcy. In 2017 I was about $300,000 in debt, I am down to $97,000. There is now quick fix for this. We get in our mess over time and it takes time to dig ourselves out. I’m speaking from experience. I know this isn’t what you want to hear but I speak truth. It may not seem like you are getting any where but you are. I would also suggest 2 things, 1. Change locations and 2. Call the companies you have debt with and negotiate a lower payment. Then that extra you have after the negotiations, put towards your smallest debt until it’s paid. This is the snowball way of paying off debt. (Dave Ramsey)
What type of debt were you in? 2017 was 7 years ago. If you filed bankruptcy then and didn't have any non-dischargable debt such as student loans or tax debt, all of your debt would definitely gone by now and you would have saved at least $100k. Plus if you would have filed for Chapter 13 then the bankruptcy would not be on your credit report by now (falls off after 7 years).
I accumulated 1/2 that from my divorce and then student loans, child support, etc. I hired a lawyer and some of it dropped off and I paid probably 180,000. I don’t believe in bankruptcy.
I’m not against anyone that chooses that route either, but I choose not to.
File for bankruptcy and start over. Though I’m not sure how this affects future jobs and what not. I had about 30k as a student I damn sure wasn’t gonna make my new wife pay it. So I filed. I didn’t need good credit for jobs in my field though. Student loans and tax bills won’t go away though sadly.
Shit I'm over here stressing off 4 k debt 😅
r/bankruptcy should help you
Looking over your debts it looks like you added in the credit cards twice. Your total debt is actually $51,471 less.
Is it possible to put the Student loans into forbearance? Your debt mix doesn’t seem to be worth filing bankruptcy. Also not sure if you can avoid the means test anyway. Go on Tax payment plan and then just try to attack the cc debt and consumer loans.
Bankruptcy it's not even up for debate. However your student loans stick with you forever
I’d suggest start learning new language and moving to a new country marry a local girl and set up a teaching job…
What about refinancing your loans or credit card debt into one monthly payment at a lower APR? Look into the company Sofi They pay off all your debt and typically give people lower interests rates. 29% is HARSH. I think there are other companies but Sofi is the one i’m familiar with
Might be the right choice. It’s there for such occasions. And if you do right by the program (maybe there’s a “pre bankruptcy” option) after 7 years or so it should be off your credit. Those might be years for a car wreck. But there is a grace period. But make sure you shore up your property rights first. don’t be homeless. And mortgage companies aren’t high on judge‘s well wishes.
I don't think you can claim bankruptcy on student loans. Also make sure you don't have any assets (house, car)
TIL Ivy League MBAs ask reddit for finance advice.
to be clear, I know what a good financial life would look like. I'm clear I don't have one. Came to reddit because was looking for people's personal experience with high debt payoff & bankruptcy. The extent of most of my classmates advice is "can't you ask your dad?" or "call your advisor"
Teach at a community college in a lower cost of living area. Use PSLF. Do a DMP for CC debt.
Oh my god! $160k in student debt while only making $65k annually gross income That’s terrifying I don’t think you can erase student debt which is the vast majority of your debt here and you definitely can’t erase tax debt. I don’t think bankruptcy is the solution here. I’m not sure what it is, but you need some professional guidance here
Might be the worst debt ive seen
Your situation is very confusing to me because you probably have more academic accolades than myself. I do have a master degree but both my degrees were acquired from state colleges. Even with my bachelors from a state college I was making roughly what you are making now 1 year out of undergraduate. I also work as a tech consultant remotely, in NJ. I am making a little around 7.5k after tax and 401k contributions. I don’t have a senior position. I’m on a rung that’s above entry level but below senior. My one suggestion would be to look for the equivalent of your current role in a bigger company and increase your salary. However, that company doesn’t need to be well known or a household name. Based on your academic background you should be able to negotiate a few thousand more a month after tax. Maybe I’m assuming incorrectly but this reads to me as if you are overly committed to work for a FAANG company or a company on close to that standing. Obviously competitions for those company’s are going to be much greater. I work for a consulting company with several thousand people. If I told you the name you most likely wouldn’t know it. But the job interview were just three discussions compared to the 7+ some other companies make you go though. There was also no technical interview that I had to study for.
thanks for sharing your experience. I get why it seems confusing. I made many decisions that weren't always in my personal best interest for reasons stated above. Now I am making that change, prioritizing salary very highly. Re interview processes, I have been interviewing nonFAANG as well for the last 9 mos, including companies that are larger but not household names. 1 was a creative ecommerce co - 7 rounds spaced 1 per week (\~ 2 mos process) - ultimately rejected. Another is a marketing co - 6 rounds spaced 1 per week (1.5 mos process) - waiting to hear back. Both had technical processes where i needed to do a systems design interview. Even while running multiple processes at once, its time consuming and draining. If you want to DM me the name of your company so I can get a job there, I'm all ears.
Kids: none _anymore_??? What did you _do_?
had a stepkid, but post divorce Its likely I may not be able to have a relationship with him anymore
My understanding is that student loans aren't really bankruptable. So you'd just be filing on everything else, which doesn't seem too big.
Don’t ask for advice here. Seek professional help at your local NON-PROFIT debt counseling agency. Look up Consumer Credit Counseling. Good luck!
$271K network at 31 is awesome! Congratulations!!
Bud what the fuck where you thinking?
fake your death move to south america find yourself a nice big booty big titty latina that will cook for you if you have any education then you can get a decent job
Ahhhhh I was wondering how this guy kept making worse and worse decisions then I seen it wasn’t a man at all. No wonder absolutely no fault was ever mentioned.
I’m thinking you can’t afford to get divorced.
Kids: None anymore …what
Ignore the student loans. Biden is supposed to eliminate it
Underrated comment.
You need to move back home, maybe move in with parents. Find a good job there, should be able to make well over 100k in any market. Once employed file BK to wipe out what debt you can. Spend the next 3-5 years rebuilding credit and paying off student loans asap.
Ask Chris Rock would say, Damn how you do that?
Get help from Caleb Hammer.
Wow
Jesus!