I am considering bankruptcy in the next 6 months.
My situation is as follow:
House under water by $135,000 that is now in foreclosure--redemption ends on 8/7/2013. I couldn't get it refinanced and prior to the foreclosure I would not have qualified for a short sale.
Owe the IRS
$18,000 (the tax debt is from 2009 and 2010)
I have about $45,000 in credit card debt
and $26,000 on a car loan that is worth about $16,000 with an interest rate of 1.9%.
I just got a divorce (most of the debt belongs to my husband but since everything was in my name then it essentially is mine to own). But my ex won't and probably can't help me financially.
Today I earn about $48,000 (which is close to the average for qualiifying for chapter 7
My question is I just took the first course required by law and I did the budget analysis portion. The budget is stating that my rent
on my new apartment should be $834.00 but I planned on renting an apartment for $1,250 and adjusting my budget in other areas. Such as not having a car payment, riding my bike to work for the first half of the semester, limiting eating out and recreation. Does my rent payment have to fit within the 30% guidelines? Would the bankruptcy court
make me break my lease and get an apartment that fits the guidelines? Can you please advise?