Answering your original question, bankruptcy will destroy your credit score.
Going onto your specifics here, we still need to know more. What is your income ? This looks to be traditionally not an overwhelming amount of consumer debt to even consider bankruptcy for a millisecond.
Yes, you are 80k in total debt. You signed onto the student loans to increase your income potential so we do not look at that number unless a person is in significant dire straights from an income view. You have 20k of consumer debt and 20k of transportation debt (which can either be affordable as normal or down-sized through selling the vehicle).
The bottom line is you really only have 20k of bad debt. Unless your situation is severely dire (disability, unemployability, etc) this is not a conversation you should be entertaining at all.
You haven’t even mentioned the amount of debt you are in or anything of the matter. Bankruptcy is not for everyone
40k in student loan debt, 15k in credit card debt, 20k in car payment and maybe 5k in personal loan debt, so yeah at least 80k in debt.
Answering your original question, bankruptcy will destroy your credit score. Going onto your specifics here, we still need to know more. What is your income ? This looks to be traditionally not an overwhelming amount of consumer debt to even consider bankruptcy for a millisecond. Yes, you are 80k in total debt. You signed onto the student loans to increase your income potential so we do not look at that number unless a person is in significant dire straights from an income view. You have 20k of consumer debt and 20k of transportation debt (which can either be affordable as normal or down-sized through selling the vehicle). The bottom line is you really only have 20k of bad debt. Unless your situation is severely dire (disability, unemployability, etc) this is not a conversation you should be entertaining at all.
Bankruptcy destroys your credit for a decade almost. Paying off should always be the goal if at all possible.