He has job that pays 120k. He spent more than he made during last few years and now he is in bad shape. What he can do ?
All he can do is pay for his idiocy — slash spending and pay down debt. If he tries to declare bankruptcy with that kind of income, the bankruptcy judge will most likely put him on a 100% repayment plan, taking his income to pay his bills. Plus he has to pay the bankruptcy court, the bankruptcy attorney, the bankruptcy trustee, fees, interest, and any penalties. He can live on $2k/month and pay off all his bills faster, cheaper, and with a lot less stress than if he tries the bankruptcy route.
Friend of mine has home valued 600k. 1st mortgage 380K, home equity loan 240K and credit card debt 110k.?
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All he can do is pay for his idiocy — slash spending and pay down debt. If he tries to declare bankruptcy with that kind of income, the bankruptcy judge will most likely put him on a 100% repayment plan, taking his income to pay his bills. Plus he has to pay the bankruptcy court, the bankruptcy attorney, the bankruptcy trustee, fees, interest, and any penalties. He can live on $2k/month and pay off all his bills faster, cheaper, and with a lot less stress than if he tries the bankruptcy route.
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Stop spending and start saving. Either get a roommate to help pay the mortgage or sell the house and rent a smaller place. And start paying down that credit card debt. 120K salary should allow him to save and this money will go a long way if he quits over spending.
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I would sell the house if its that much, while he is waiting for it to sell find a roommate to help with the mortgage, as well as cut up his cards so he won’t use them any more, and start to stay home and do nothing so he can pay all his bills.
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He’d better start spending less than he makes. Then see if the house can be sold.
Then start living a more responsible life.
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He can learn to live on $60,000 (twice what I live on).
The remaining $60K will clean up HIS mess in about 4 years. He may not have a life in that time, but that is the price of living beyond his means.
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