Is bankruptcy the best option? TIA
Might be a long post but stay with me, the last 18 years of my adult life (18+) i havent been smart with money or finances. I have a fairly low credit score (sub 540) due to some collections, missed payments etc. I currently have a motorcycle through OneMain ( i know, awful awful decision) and im upside down on it pretty bad. Roughly 8k. Im trying to weigh my options on where to go from here. My work has slowed down and has thus caused my paychecks to be less and i just cant afford the bike payment anymore. I have a paid off car.
No dealer around me is willing to get anywhere close to the payoff of the bike, onemain doesnt really have any options for me. Do i voluntarily turn the bike in and let them repo it? IF i do this, and lets say whatever they sell it at auction for and what i owe is 8k, will they immediately send that to collections or try to sue me? I ask because if it goes to collections then i could work with them on a payment plan to get that paid off. Im assuming if it goes to collections that as long as im making some sort of payment, they cant sue me for the debt. Maybe im wrong on that.
I probably have another 5k in collections. I have tried various places to get a loan to get rid of the bike and do debt consolidation but i am not able to be approved anywhere. Ive been trying to work through alot of this for years and im just not making headway.
Do i cut all my loses, let them repo it and file bankruptcy? File now before its repo'd? I obviously know ive made alot of mistakes with my credit and i regret every one of those decisions. I just want to do better for myself. So PLEASE, helpful answers only. I know ive messed up major.