Looking for some advice. I currently have 30k in credit card debt and about 12k student loans. I was out of a job for about 6 months which caused me to fall behind as well as just general carelessness. I recently got another job and have been at it for about 2 months. Ironically it is within the financial industry. I just barely passed the extensive backround check. At my job I am responsible for selling loans, lines of credit and other bank products. I am Worried about getting fired if I file for bankruptcy, but from my understanding I would be protected and they might not find out since I do not have any credit products with them.
I stopped borrowing and am much better at managing my money now, but I currently can afford only maybe half of all the minimum payments I have causing me to fall behind. My credit score is starting to really sink. I do not have any assets other than my car which is old and has over a 190k on it and based on my income I would qualify for Chapter 7 bankruptcy.
I am torn because of the pros and cons of my options. If I file for bankruptcy I can wipe all of my credit card debt and then use the extra money I have each month to wipe out my student loans in two years. But with this option I am worried about the effect it will have on my job and if I lose it getting another one. Plus promotions. I am only 26 years old and likely to move to management in the next couple of years.
I can get into a debt settlement program, but it seems like it would still take a long time to pay off and I also might get sued which I really do not want to go through. The benefit here is that I could pay off my debt sooner and not have bankruptcy on my record. Of course bad credit could be just as bad if down the road I start applying for another job.
The other option I guess is working with my creditors on a payment or getting into some kind of debt consolidation program, but I do not know if I could still afford the payment?
Overall, it would be great to go the bankruptcy option and be debt free in two years, but I need to think about my job too as it is a tough market. Your thoughts?
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