I’m drowning in $52k worth of debt after my breakup – an expert said a parenting sacrifice will clean up my mess

A TRUCK driver has been given one piece of expert advice that could help him get rid of his crippling debt.

After an unexpected breakup, Charlie was left struggling with mortgage payments, car payments, and credit card debt.

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He called into The Ramsey Show – a radio program – to ask experts what he could do to alleviate his debt.

Based in Everett, Washington state, Charlie explained that he was overwhelmed by the amount of money he owed.

“I’m drowning,” he told co-hosts Jade Warshaw and George Kamel.

He explained that he was currently living “paycheck to paycheck.”

Charlie told the hosts that his recent breakup had forced him to change jobs , which had significantly reduced his income.

Formerly a long-haul truck driver, the breakup had pushed Charlie to take a local job instead.

He wanted to be at home more to look after his daughter, 17, and their pets .

This decision, however, had left him struggling to make ends meet.

He was previously making around $120,000 a month, but his career change had left him with just $4,500 instead.

Charlie told the hosts that his biggest spending mistake was taking out an auto loan on a car.

He purchased the vehicle around three years ago when he was making significantly more money and the payments were now getting too much.

“I’m about $20,000 upside down on it,” he said.

Charlie owes $52,000 on the car, despite the vehicle only being worth $32,000.

Although he has tried to sell it out, he has been unsuccessful in finding a buyer.

“I mean I can’t blame anybody but it’s not going anywhere,” he said.

Charlie also pays just under $2,000 a month for the mortgage on his house, as well as payments on three different credit cards .

On one he owes $12,000, another has $3,000 worth of debt, and the third credit card has about $600 of debt.

Then there is also the payment for the truck he drives for work, which is just under $1,000.

“I feel kind of between a rock and a hard place,” he told the co-hosts.

How does bankruptcy work?

Bankruptcy is a specific legal process that helps companies eliminate debt they can't repay.

The process allows businesses to start fresh and gain access to new credit.

Supervised by federal courts, bankruptcies allow a company to sell off its assets more easily to pay off creditors, according to Investopedia .

Chapter 11, a common process for companies, is used to restructure a business with the goal of remaining open – even if it means selling off most of the company’s properties.

Chapter 7, on the other hand, sells all of a company’s assets, putting it out of business.

Chapter 15, alternatively, allows for collaboration between American and foreign courts to conduct bankruptcy proceedings with “parties of interest involving more than one country,” per the United States Courts .

“The split was mutual and it was very abrupt,” Charlie explained and it seems it has made his financial situation a lot more complicated.

Warshaw and Kamel urged the truck driver to “clean this mess up.”

They advised him to have a conversation with his daughter to explain his situation.

“Say ‘listen, I know I haven’t been there, I made a mess of things and I’m getting about the business of cleaning that up’,” they advised him.

The pair said that Charlie needed to sacrifice his time at home with his daughter to get rid of his debt.

They pushed him to go back to his old job, where his salary was much higher.

“I’d rather you go to work now for a year and clean this mess up,” Kamel said.

“That’s a different kind of sacrifice but it’s the one that will stick with her.”

“Just own up to the mistakes and go ‘I want to have a different legacy for your future’.”

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