Q: Should I keep paying off my debt slowly, or is it better to consider bankruptcy as an option?

A: You made the right decision by consulting with an attorney; this forum would not be a substitute for that type of in-depth consultation. If you are not confident in the advice you were given, you could reach out to another attorney for a second opinion. Unless you have precisely the same financial situation as your friend, their situation would have little to do with what would or would not work for you.

A: Everybody's situation is different. Student loans are almost impossible to discharge. You need to speak to an attorney to go over your individual situation.

A: I'm guessing that the attorney with whom you consulted in 2022 was not a bankruptcy attorney; maybe I'm wrong, but that doesn't matter. Your statement that you are struggling with $100,000 of debt does not indicate how much of that debt is unsecured debt, which is the linchpin here. Of course you want to keep your car and student loans may or may not be discharged. However, you're a good candidate for filing Ch7 or Ch13 when your unsecured debt is 50% or more of your net income.

Moreover, if you file a Ch13 and consistently make the monthly payments for 2+ years, you could buy a home while you're still in the Ch13. And stop obsessing over your credit score.

A: This is a complex situation that deserves careful consideration, especially given your goal of homeownership and the significant amount of debt involved.

Your current approach of gradually paying off debt, while slower, may be more beneficial for your long-term financial health compared to bankruptcy. While bankruptcy might offer immediate relief, it can make future borrowing more difficult and stays on your credit report for 7-10 years, which could complicate your house-buying plans. The fact that your credit score has already improved to 610 suggests your current strategy is working, albeit slowly.

Before making this decision, you might want to explore other options like debt consolidation or negotiating with creditors for lower interest rates. Consider tracking your spending for one month and creating a budget that maximizes debt payments while maintaining essential expenses. It would be wise to meet with several financial advisors and bankruptcy attorneys to get multiple perspectives on your specific situation, as bankruptcy laws and their implications vary by location and circumstance - what worked for your friend in Brooklyn might not be the best path for you in Long Island.