"I Can Barely Keep My Head Above Water"

[music] brought to you by the Every Dollar app. Start budgeting for free today. >> So, I am recently divorced with two small children. >> I'm sorry. >> I was married to a guy that's been married three times before. Um I was stupid. I was young. Clearly, clearly paying for it now. Um >> he has wrapped us into an insane amount of debt. Um and I can barely keep my head above water. and I knew divorcing him that he would leave me with everything and not help with the children. >> That's exactly what he did. Um, sorry. >> I It's taken me a while to try to figure out what to do now. Um, I am a nurse. I have worked. Um, I have a pretty good job now. And I just I'm going to lose everything. >> Um, cuz he's not paying for everything or helping me. And he's so sorry. and he's doing it on purpose. Um, I have $40,000 in business loans from his failed business because he talked me into the world and he did this to multiple women before. >> I have $40,000 in student loans. I have a $60,000 car I'm left with from him because he had this lavish lifestyle and I just couldn't say no because we gave him what he wanted until he was happy. >> Okay. >> He has stopped paying for everything. I landed a pretty pretty high paying nursing job and it's pretty pretty good. I'm right now I'm working two full-time jobs to try to get this stuff paid off while paid for child care by myself. >> I live in a small one-bedroom with two small children just trying to get everything taken care of. And I don't qualify for chapter 13 bankruptcy or 7. I qualify for 13 but at the highest payment plan which is what I'm doing. >> Yeah. I have probably $200,000 in debt and I don't know if I need to just quit my job and give everything back or what I did. >> No. So this this was at this $100,000 the 40,000 loan the 40,000 of student loans 60,000 car that was after it was split amongst you. >> That's that it was and he he was court ordered to pay these and he has not and he's still in your name else. >> And they're still in your name. Okay. >> So, the car, who has possession of the car? >> I have the car was awarded to me. >> Okay. And you said it's it you you have to pay 60,000 on it. If you sold it today, what would you get for it? >> 33,000. >> Okay. And then the student loans, are those his student loans or they're yours? >> Those are those are mine. Okay. Those are mine. And it's about 40,000. It's nothing super, you know. >> Okay. in the business loan if you were to um if you were to force a refinance on that to get him off of it like is he supposed to be paying that loan but he's not or was that awarded to you the 40,000 business loan? >> He was. He was. But I can go pay $10,000 to file contempt and then get money out of a guy that he quit his job and he's on military disability. >> Well, no no have to pay. I'm not saying you do that, but I'm saying if he if the court said that he's supposed to pay the $40,000 loan, but he's not paying it and your name is on it, you should be able to force him to refinance to get your name off of it >> because so that you can be free and clear. >> And what happens when you bring that before the judge? What happens? >> I I have to pay another $10,000 to to go forward with it. He just will not do it. He won't do anything. >> Yeah. No, but the court can force it though is what Jade's saying. >> I I guess I haven't done that. I I This is so new. I've been in a panic. >> Hannah, when did all this When did all this When did all this happen? >> March of this year. >> Okay. So, yeah. So, it's fresh. >> Very new. Yep. >> Yeah. >> And I say I can't modify anything for at least a year. So, I'm I'm just He just dumped everything on me in June, >> including the children. >> Okay. Yeah. Well, well, whatever the the divorce decree says of what debts are his and what debts are yours, and this 40,000 they said is his, correct? Even though your name's on it, but they through your divorce, >> that's his, right? >> So, so yeah, I would I would contact your Do you have a lawyer still? >> Uh, I do, but she just wants money. She's not helpful at all. >> Okay. Well, maybe let's find someone helpful. um because >> $5,000 to to take it to to go forward with this and I could just pay $5,000 to something and pay it off. So, I'm really struggling with with that. >> Well, if she's not a good if she's not a good attorney, find a new one, >> and that's okay for you to do. >> Yeah. >> Um and [sighs and gasps] yeah, what Rachel said is absolutely the case. you've got to go with what the courts have said and if he's not uploading, you know, upholding his side, you've got to you've got to force that into action. So, it sounds like the only ones that truly are your burden is the 100,000, right? The student loan in the car. Is that if we're really talking about who owns what? Yes. >> Yes. >> Okay. So, let's focus on that for now because today in this moment, you can't change the situation of the business loan. that will come. But for now, and my guess my guess is that your credit is decimated anyway. Am I wrong? >> Oh, it's just it's right. >> So then it doesn't m right now literally it doesn't matter, right? The damage is done and find find a little bit of freedom in that honestly that it can't get that it can't get worse. >> Yep. You know, exactly. Y >> So I love that you're making a lot of money. You're doing so well on that side. You're able to, you know, pay for daycare. So, let's reorganize your budget and make it to where we're accounting for four walls first, which is you're making your rent, you're making sure there's transportation, you're making sure there's utilities, you're making sure that you're eating, right? That's number one. And then right after that, number five is daycare, right? Cuz the kids have to go to daycare so you can work. >> Then after that, if there's still money, now we can start going down priority after priority hand and making sure that everything is accounted for. And if there's money now, we can start the debt snowball. >> Yes. >> So, are these the only two debts you have in the whole world? >> Um, I have a credit card with like 7,000 on it and I owe 4,000 left to the IRS from back taxes and I'm making $1,000 payments on those each month. Just >> Okay. >> Okay. So, so let's focus on the IRS first. How about that? Like make it real small. >> How much are you bringing home a month, Hannah? >> Um, about 11,000. >> 11,000. Okay, that's great. Yeah, you do have a great job. Um, you know, one of the biggest burdens is this car, the $60,000 car, and it's um it's teetering right there at it's unmanageable because how much is the payment a month? >> 1300. >> Okay. So, >> yeah, >> honestly, and I know your credit's terrific because the the >> the easiest way to do it would to go get a, you know, go get a $38,000 loan, pay off the car, and then take 6,000 and go get a crappy car just to get you back and forth to work into daycare, right? I mean, like, that would be the ideal. With the credit being shot, that's going to be really difficult. So, I'm wondering if there's a credit union or someone in your town that you can sit down and explain the situation, bring records. You know, >> my sister is willing to to cosign or put a car in her name under $30,000 if I just give this Jeep back, this wagon ear. Can I do that or am I going to is it going to be a problem if I just hand the keys to the bank and walk away? My sister will get a car for me and I'll make those payments. So, I didn't know if that was an option or if I'm going to pay for that in the future. >> No, because you're still going to be if if you surrender this car, they're going to take it and they're going to auction it and whatever the difference is on the 60,000 loan, you're still going to have to pay. >> Well, how did where did you get the $33,000 number? Cuz wagon ears are nice. >> Yeah, but their their value is horrible. >> Oh, is it? They go down horrible. >> Is that Kelly Blue Book >> during bankruptcy? Kelly Blue Book. Yeah. >> Okay. Shoot. Oh, man. I didn't know that. When I see them, I'm always like >> I know they look nice, but they drop like a rock. They're terrible. Yeah, >> they have no value. When you when you turn them in, you are absolutely hosed with them. They're $100,000 and you'll get 20,000 for them. >> So, one of my biggest goals for you would be um twofold. The first one, and I think that this car is huge cuz it's $1,300 a month. I would exhaust everything because anything is better than you having you owing 38 is better than you owing 60 basically at just about any term >> 100%. >> You know, so see scour and find yes to see if you can get any kind of loan to be able to pay off the difference and then get you a crappy car with it. But hey, Hannah, hold on the line. Christian's going to pick up and we're going to get you with one of our certified financial counselors to walk with you cuz as a single mom juggling all of this um to have someone sit down and actually run the numbers longer than just 8 minutes of what Jade and I can do. Um we want to give that to you as a gift, Hannah. And you're doing incredible. You're an incredible mom. You're an incredible fighter. >> Yes. >> And we're here for you, Hannah. >> Create your free every dollar budget today. The simplest way to budget for your