Need advice on debt and available options

[mortuus est]

I made a throwaway account to discuss my personal finances. We are currently in a lot of debt and it is primarily due to my wife not working. She stopped working about 2 years ago when she was pregnant with our second child. Although she's been trying to jump back into the work force, she's been having a lot of difficulty trying to find a job.

We had to resolve to credit cards with the loss in income and her unemployment has lasted longer than we expected and everything has spiraled out of control now. We've maxed out all of my credit cards and now I am considering filing bankruptcy to get us back on track. However, I am open to any and all viable options.

Here is a break down of where we are:

My income is 85,000 (monthly income after taxes and deductions: $4,500)
Mortgage is 260,000
Owe 96,000 in credit cards (mine)
25,000 credit cards (wife)
Owe another 60,000 in student loans
Monthly expenses:

1,800 mortgage, hoa, insurance, and taxes
650 for cars including car payment, insurance, and gas
500 roughly on groceries
200 all utilities
600 for my older sons pre-school (I am going to get a lot of crap for this one, but he is going to remain in school for now)
700 in credit card payments for my wife.
50-100 for unexpected monthly expenses.
Student loans on deferment/forbearance
I've been considering a chapter 7 bankruptcy for myself. I am planning on keeping my wife's credit clean and paying off her debt. In California, my homestead exemption is $100,000. According to zillow, realtor.com, and trulia my home is worth $395,000. So, concern about going this route is losing my home as I am $35K over from my exemption. However, I've read that it is not only my exemption that is taken into consideration, but also closing costs and the costs of the bankruptcy trustee's commission (25% of first 5k, 10% of first 50K, and 5% of everything there after) when considering a sale of property.

I am not sure a Chapter 13 is feasible considering how little is left after "living" expenses.

I am also open to letting my credit cards go delinquent for much longer and then try to settle with my creditors. My worry here, and I am not sure how the law works, is them suing me, placing a judgement on my property, or garnishing wages. I also don't know generally how long they wait before pursuing legal action.

I am expecting a promotion at work. I am estimating my income to increase 5K-10K. Expecting this within next 2 months.

I would like to keep my house...so suggestions with this in mind please.

I know, my finances are a mess. Please chime in if I misunderstood anything mentioned above or if there are other options available that I've missed.

EDIT: In case it matters, I was current on all credit cards (been killing myself with extra stuff on the side) until December, so about 30-90 days late as of this month.

 

[LastEmperor2k2]

This thread just made me feel better about the debt i got from having to pay off my boiler

I dunno how bankruptcy works, but maybe thats an option

Clean slate

 

[Amerikan Melanin]

How the fukk you get 96K in credit card debt?

Dudes wife needs to get a job asap. A good paying job otherwise hes going bankrupt.

 

[LastEmperor2k2]

How the fukk you get 96K in credit card debt?

Dudes wife needs to get a job asap. A good paying job otherwise hes going bankrupt.

Thats crippling debt

 

[Strapped]

Where did you copy this from

 

[Art Norm]

125k in bredit bard debt

 

[Weaver31]

at this entire situation...

If this is true...OP and wife should've lived within their means. House/mortgage too much and with all that debt....he could eventually get a lien on his property. Sometimes folks think they need to keep up with Jones or live above their means. Not gonna go into this more but OP I'm hoping best for u and ur family.

Wife needs to work ASAP. OP may need to get another stream of income maybe part time gig if u don't get promotion. Will have to trim spending as much as possible...from groceries and miscellaneous expenses. I know y'all have to eat but no going out to eat if y'all do that. Its just the debt is so high....I can see a lien being placed on ur property or wage garnishmen in future if nothing is being done.

 

[Freedman]

Boy better get his breaking bad / weeds on

 

[Cynic]

Get Married Brehs :gmbrehs:

 

[mannyrs13]

at this entire situation...

If this is true...OP and wife should've lived within their means. House/mortgage too much and with all that debt....he could eventually get a lien on his property. Sometimes folks think they need to keep up with Jones or live above their means. Not gonna go into this more but OP I'm hoping best for u and ur family.

Wife needs to work ASAP. OP may need to get another stream of income maybe part time gig if u don't get promotion. Will have to trim spending as much as possible...from groceries and miscellaneous expenses. I know y'all have to eat but no going out to eat if y'all do that. Its just the debt is so high....I can see a lien being placed on ur property or wage garnishmen in future if nothing is being done.

its not him he's in london, guy in story is in cali. anyways that guys an idiot for letting his finances get that way. like was mentioned, you try to keep up with the jones and end up in shyt like this.

 

[TELL ME YA CHEESIN FAM?]

Yeah 4.5k with those expenses is slumming it

Them cars should have been paid off.. gotta let one go or downgrade
500$ on groceries? how many seeds?

Ridiculous

 

[Weaver31]

its not him he's in london, guy in story is in cali. anyways that guys an idiot for letting his finances get that way. like was mentioned, you try to keep up with the jones and end up in shyt like this.

Yes they living way above their means and must been trying to act like they got it like that. And a home like that is designed for 2 incomes AT LEAST.

 

[Pimp]

Your wife has to get a job ASAP! You are going to have to work 2 jobs..

You'e gonna have to see if you can rent your house out for $2400/month and move into a cheap apartment for like $1200/month. That will get you +$1200 a month.

Sell one car... Keep the cheaper one..

Get that kid out of school for $600/month.. It's 2018 and you can learn more on YouTube than in school.

There's really no way you can 96k of credit card debt unless you have one of them Versace, LV, type of girls.. Stop acting rich, you'e broke..

Pay off the 25k first.. Tax return should knock 7k off that.. One car sale should knock off the rest..

If you can' cash flow your house, sell it now.

You guys are stupid.. Stop trying to stunt and downgrade everything. If your wife doesn't agree. Downgrade her..

 

[TELL ME YA CHEESIN FAM?]

Your wife has to get a job ASAP! You are going to have to work 2 jobs..

You'e gonna have to see if you can rent your house out for $2400/month and move into a cheap apartment for like $1200/month. That will get you +$1200 a month.

Sell one car... Keep the cheaper one..

Get that kid out of school for $600/month.. It's 2018 and you can learn more on YouTube than in school.

There's really no way you can 96k of credit card debt unless you have one of them Versace, LV, type of girls.. Stop acting rich, you'e broke..

Pay off the 25k first.. Tax return should knock 7k off that.. One car sale should knock off the rest..

If you can' cash flow your house, sell it now.

You guys are stupid.. Stop trying to stunt and downgrade everything. If your wife doesn't agree. Downgrade her..

It's not him breh..calm down

 

[Pimp]

It's not him breh..calm down

I know.. He can copy and paste this to whoever it is though.