Stuck with all the debts

Debt

Well Reddit, I think I've hit the end of my road financially and I don't really know what to do. (TL;DR at the bottom)

My wife left me a few months ago and because we both made about the same amount of money and I'm not an a-hole I didn't fight her on anything really. Although she did have pretty good leverage of; either take these debts or take child support.

Anyways, with a complete negative worth I don't know what to do. I have roughly $42,500 in debt

-$17,000 on "her car" that's only worth 10k -$10,000 on a personal loan that put a new engine in that car so she didn't have to drive my old beat up Jeep while I was overseas on my deployment, of course she took that in.l the divorce (national guard, I "had" a real job before I left) -$7,000 on a personal loan that we took out so we could make the necessary improvements that she demanded on the house we had before we moved two years ago just to sell it -$8500 on credit card debt that I basically had to life off of when I returned because I couldn't go back to the military because my order were still there and I had to buy everything, I came home to a completely empty apartment, and nothing for my kids from the ex.

I had to quit my job when I returned from my deployment and move back to the town she returned to post divorce, my options were either only see my kids for a couple hours on Sat/sun plus pay child support of $500 a month if I stayed or come back and get them for a week at a time

For about another month I'm doing what people call "guard bumming" which pays me roughly $800 a week but the pay takes a long time to come and isn't regular or enough. I'm behind on almost every payment

I should be able to return to my career field where I live now soon (fingers crossed) but it will only pay $17.34 an hour, which after just my bills, gas and groceries $(2300) leaves me with just $300 a month which I feel like is a really tight window. And the kicker is that doesn't even include my child care expenses which wipe that out because they are $360 a month so I'm in the hole $60 a month.

I've already eliminated all the expenses I can. I don't have cable, my internet isn't fancy, I don't have a gym membership or anything crazy like that. My apartment is pretty much as cheap as they come. And I can't do anything with my car.

I'm at the point now where I feel like I only have 2 options:

  1. Punch the active duty military ticket despite my hatred for it but make $3800 a month (most of it tax free) and gives me a comfortable surplus of $1300 a month roughly.

  2. Declare chapter 7 bankruptcy. Since I have no assets plus the "just getting back from deployment clause" makes me a good candidate for it since I have no assets and wouldn't have to conduct what they call a "means test". This would wipe out my debt and allow me to continue to work in the career field that I absolutely love even though the pay is terrible

I'm very scared of the long term ramifications of a bankruptcy. But at the same time it would be amazing to be able to actually live again and just not have debt. I don't ever want to fall in this debt trap again so the fact that I'd never get approved for a loan again doesn't really bother me, except for a house. I live in pretty much the one area of the country where it's cheaper to buy than rent :(

At the same point the military would tear me away from my girls and family (hello child support). Not to mention I definitely can't grow a beard at that point, which is a small but annoying hassle really.

Anyways, thank you in advance for any advice or words of wisdom you can give me. At this point I'm at a loss and I'll take anything I can get.

TL;DR: I have $42,500 in debt and don't make steady pay, even when I do I'll still be $60 short a month. Should I go active duty military to have a $1300 surplus or declare chapter 7 bankruptcy to clear away the debt and do the job I love.

Posted Aug 29, 2016, 10:43 PM UTC

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