"The Core Financial Reality Gambling debt (judgments, payday loans, emptied 401k) $150,000 Current household income (single earner) $68,000 Husband's potential income (when recovered) $95,000-$110,000 Additional secured debt (house, vehicles) $142,000 Total debt burden $292,000 The critical issue isn't the debt size, it's the income gap. On Heather's $68,000 salary alone, they're carrying a debt-to-income ratio over 3:1 on gambling debt alone. The $53,000 and $19,000 judgments likely carry 8-12% interest rates, while payday loans typically charge 15-30% APR."
"Bankruptcy might seem appealing, but with her husband's $95,000-$110,000 earning capacity, they'd likely fail the means test. The better path: aggressive income restoration and debt elimination. First priority: Her husband must find remote work immediately. A torn Achilles doesn't prevent computer-based work. Even a $50,000 remote role would nearly double household income. At $160,000+ combined income, they could eliminate gambling d"
Discovering $150,000 in hidden gambling debt after marriage and a new baby creates a severe debt-to-income imbalance and destroys financial plans and trust. The household carries $292,000 total debt with $150,000 in gambling obligations and current income of $68,000. High-interest judgments and payday loans escalate monthly costs. Bankruptcy is unlikely because of the husband's $95,000–$110,000 earning capacity and probable means-test failure. Immediate priorities include restoring income through remote work, stopping gambling, negotiating or consolidating high‑interest debts, prioritizing judgments, seeking legal and financial counseling, and executing an aggressive repayment plan to regain stability.
Read at 24/7 Wall St.
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