Filing bankruptcy

Does it typically lighten your monthly burden to your creditors?

Does it typically lighten your monthly burden to your creditors? I assume that my wife and I would not qualify for Chapter 7 because of our income. We make $80K annually and have $50+ in unsecured debt. Another 50K in student loans, which we cannot afford to pay right now. They are both in forbearance. We have an auto loan with a balance just below $20K and a mortgage balance of $110K. I believe we have $25-30K in equity depending what an appraiser feels the FMV is. I am wondering if Chapter 13 is the way to go for us because there is no way we can get these debts paid down in 5 years as that plan would.

Some more questions:

  • How much does it affect your credit? 200+ drop?
  • How much weight do future employers place on bankruptcy?
  • Right now I believe we are paying $1500 a month in unsecured credit card payments.
  • As I asked above, will chapter 13 help us with this?

This is rough to deal with as I am an accountant. My family has no idea about our debt. It has snowballed on us after I lost my first job out of college and we had first daughter at that time. We have moved too many times which has cost us quite of bit of money there. It has just gotten out of hand where we have to use the credit card for everyday things such as groceries.

I do not know what to do. I feel horrible because my wife counts on me to make sure we are OK financially. We have had discussions about it recently and she is scared of bankruptcy. We have two little girls we need to support and take care of before they become young adults.