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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?

One major thing you need to consider is that you still do risk being sued while in a debt consolidation program Some creditors are not happy about these programs and will choose not to participate. That could just force you into bankruptcy halfway thru your program.

Sub: #1 posted on Sun, 12/04/2011 - 20:58

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You could opt for debt settlement, but honestly, if you qualify for Chapter 7 bankruptcy, and this will allow you to pay off your student loans within two years, this really seems to be the better option.

Are you absolutely certain that you could lose your job of your employer finds out you file for bankruptcy? Try to find the honest and accurate answer to this question, and if you find that job loss is not a risk, seriously consider bankruptcy.

I find it hard to believe that your employer would randomly perform another background or credit check on you after you're already employed and performing well. Of course, I could be wrong, but being a business owner, I just don't see the advantage of checking on my high-performing employees.

Good luck to you - whatever path you choose.

Sub: #2 posted on Mon, 12/05/2011 - 09:05

mariemegge mariemegge

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