Hello, Wanted to get some advice/direction. I am 23 years young (just turned in December) and I have paid money to retain a lawyer. I should have my attorney fee and filing fee paid for by 2/7/02. I am filing chapter 7 bk because I am about 32,000 in credit card/personal loan/and utility bills debt. I am in soooo much debt that it was starting to effect me emotionally and physically. I chose bk because after thinking and researching for alternative measures It was the only option for me. I cant afford to pay any of my credit cards anymore and I cant even afford cccs payments. I do also have a car loan that is 18% and i still owe 12000 on it. My car payments are 396.00 monthly but I can afford to pay it and I NEED to have transportation to go back and forth to work. So, I am not including my car loan in my bk. I still have 42000 worth of student loans (i just graduated this may) that will be heading my way. however, they are in a 1 year foreberance now so I dont have to pay the payments for a year. Im not upset that I had to result in filing bk. It was the only alternative for me in my situation. I do however regret getting into soo much debt so young and I have been taking it one day at a time learning how to manage my finances smarter. Whats life going to be like now.... Will I still be able to turn my cable tv back on... Help experts
Sorry to here the bad news, but you will be fine just keep your head up. This is a awsome broad that u can realy lean alot. I file bk in98/ discharged in99(130k) in debt. I have not looked back my score is know 666 on tu, 679 on eq & 654 ex. I had the bk removed from tu. So it is not the end. Good luck!
I don't know anything about BK, but as far as it being the right thing to do: if your bills are starting to affect your health, then you did the right thing, in my opinion, in this situation. To me, a person's health is much more important than credit. I am guessing that if you pay the old cable bill, they will let you have it again ;-) Good luck
When you file for bankruptcy, you must include ALL debts you owe by law. (Can't leave out something just because you want to keep it-it's the whole enchilada or nothing). What you can keep depends on your states exemption allowances. If you have little equity in your car, you should be fine with keeping it. You're far from alone though as you'll find out by reading this board and other sites that talk about bankruptcy. Since you know you will be filing, use this time wisely by learning as much as you can about rebuilding and credit in general on this and other sites. Talk to a lawyer. Most people lose little if anything when they file, once you have the facts, you'll feel a lot better about your own case. Good luck to you! Newstdt
It's not the end of the world. I filed when I was 22 in 1985 when it wasn't cool to file. Now over 1 million people a year file. Once it's discharged get a secured card or two and rebuild. As far as cable goes...I know a lot of people that use a relative to get service in their name to start. It's good you're not using ccc. Most people I've seen said it made things worse and the ended up in BK anyway.
I did talk to a lawyer and he did say that I have 2 option with my car. give it back and include the loan in the bk or list the loan but we dont have to including in the actual bk petition if i am going to continue paying the loan. My car is worth around 6000 from kellys blue book value and i still owe a little over 12000 on it. So there is a large amount of inequity in it! I did have to get a print out of my cars value through the kelly's blue book to provide to my attorney. In regards to my student loans in addition to the 42000 federal stafford and unstafford loans I have i also have around 4000 in perkins and university loans. However, my perkins and univeristy loans totaling 4000 can be canceled if i file for bankruptcy. I really dont want the car loan debt...I feel like if I HAVE to file bk i want to get as close to a "fresh start" as i possibly could. But I have not alternative for a car right now. And also, my car loan was opened june 2001 and has never been late. So there will be at least 1 piece of good credit still left. So when the bk is filed and discharged i will have the car loan and my student loans to dig my self out from.
Good advice Bigmon, I BK'd at 25 as a result of my daughter being pre-mature and my insurance trying to weasel out of paying. That was in '85 and I wish this board had been here then, hell I wish there had been a real Internet then! It will pass. Get the secured cards as soon as you can after discharge. That way you'll have some tradelines after you fight it off of your reports.
You do not have to include al debts. The only thing is if she does not include it, she cannot get a discharge later on for those debts. As far as student loans go, do not even try it. You cant get bk on those for 7 years. Also, with the new rules coming out, the court can also always force you into a Chapter 13. That's kind of like the consumer "reorganization" where the court makes payment plans. If they think you can afford payment plans, they may force you into a CH 13.
I think she can include the car but can't she "reaffirm" the car payments with the lender? I filed in 1997 and I was given the option of reaffirming some of the accounts. Ask the lawyer about this.
Hi Stacy and welcome . I am far from an expert in this stuff but LizardKing is. You have nothing to lose by trying to resolve all the unsecure credit / It would be a better result than Bk as like already said it can turn into a CH 13 which can end up beeing a great drain on you and your resources. Once you understand how things work, calls from credit agencies can become fun. You CAN stop the credit agencies from bothering you. You can clean up you credit report. It takes time and little money in paper and postage. It can be frustrating but it's just a mtter of time and persistance. Using the same tools your creditors use. Finding this board is your xmas present. Now here is the other part of the present. Read the first 4 posts on the top of this board. Twice Then start your quest. When creditors call now, if you do not have a copy of the bill ask then to mail a copy of the bill to you. DO NOT GIVE OUT ANY more information as you can bet it's being recorded. Don't agree to pay a penny .. You will learn why as you read. Never say NO say I am not sure or you don't know. Just advice them that you are seeking to resolve (dont say PAY) this with the creditor and do not wish to be called anymore . They should tell you that you will have to write them to do this. Some scum agencies give you an address that does not exists. So my way is First call say you dont have copy of the item in dispute. They will tell you that they mailed X amount of copies. Tell then that you misplaced then and you need a fresh copy .. They seen to hate this for what ever reason . Also they will try to tell you all the stories about their realtionship with their client and how you need to resolve this with them ASAP. Just stay with the same story. Once you have mailed the request stop calling then when they call just advise then that you do not wish to be called. Once you recieve a notice from them then start the process. Keep a log of who calls and what time as once they recieve the stop oprder they will be in violation if they call . You may need this data for ammo later on. Happy xmas and read on . It can be done any Q's just post here
Thanks for all the great advise that I have recieved so far.... However, in regards to not filing bk and taking other messures to get the crediters off my back....I have done some reading on the is board. One thing i refuse to do is be a fugitive of the credit card companies. I have 12 credit cards 1 personal loan, a gas bill, electric bill,and cable bill, plus a cell phone bill that will be included in the bk. I refuse to live my life changing my number, using a po box etc... until they all charge off or i get sued. I do realize that I did something wrong, i made mistakes. Im only human and I HAVE to live with the consiquences of my actions. I knew what it was like to have good credit...I had credit from really good companies: MBNA citi Discover Providian capital one GM Household With some of these companies I had a couple of credit cards. I LOST CONTROL OF MY FINANCES AND I WAS LOSING CONTROL OF MY LIFE! now i will now what its like to have bad credit again. I will rebuild but What the hell....do i need 12 credit cards for. I will obtain a secured card. Maybe it will be good to pay for everything in cash for a while. With a 12000 car loan and 42000 in student loans, i dont need any more debt right now anyway. I have to pay my attorney 800 for file for my chapter 7 and i have already paid 200 of it and will be paying more on 1/10 an will have whats left paid by 2/7. i want to be able to afford to go to the doctors and dentist. I dont want to feel like i have to get 2 or 3 jobs. im young and i dont want to feel like i have to do what i have to do to make just the minimum payments. I want to be worried about finding love not money. StacyPA
But you will end up a fugitive to BK.. Just remember the atty is interested in your $800 not the complications that arise from BK. I see credit repair as an alternative and BK as a last resort. 800 buys a lot of paper and cert return reply postage. You can email me and I can explain better by credit repair is far better.. A good friend of mine is helping sort my stuff out and he was far worse shape than you and he bought a house 3 months ago and hid atty told Bk was the only way out Credit repair is process that leads to better things. Bk is a process that leads to one thing and a derog for a long time and can complicate many things like a job your car insurance etc.. snip One thing i refuse to do is be a fugitive of the credit card companies. I have 12 credit cards 1 personal loan, a gas bill, electric bill,and cable bill, plus a cell phone bill that will be included in the bk.
http://www.orb.uscourts.gov/orb/Documents.nsf/FAQ?OpenView you may wish to read this FAQ from the BK court it answer just about all the questions
Nice posts oz, but forget it for this one. I suggest if StacyPA considers what we do here is to "make ourselves fugitives to the credit card co's, then she is in the wrong place and needs to find a different board. PS - by that 1 comment alone, I suspect [].
Well it's xmas and all that and I think (hope ) she means otherwise and that's why I suggest she contact me via email as some things should not be public.. I think this is what she is talking about .. The reality is you can embrace the credit agencies with the law ..LOL Stacy you do not need to do any of this shown below. You are far better off NOT changing anything. Read more as I dont think you have the full picture. The atty painted the " easy solution but 7 or 10 years IS a long time. 12 months is right around the corner. snip I refuse to live my life changing my number, using a po box etc... until they all charge off or i get sued.
You know what, not everyone has the same situations or lifestyles who result in having to file bankruptcy. What worked for you may not work for me. Maybe you read my post wrong because I never called anyone on this board fugitives to credit card companies, i simply stated that I dont want to live MY life felling like I have to run away and hide from credit cards. So, you tell me that i need to find another board.... that just plain rude and ingnorant. I posted my subject because i knew that i was not the only person on this board that is young and in trouble and from my responses i can see that there are several others that filed or are filing in their 20's. When i said that I considered all alternatives i ment that. if my accounts charged off and im issued judgements thats no better than filing the bk. You know there are still such things as good people that make bad discisions. Thanks for your help, ill find another board.
Stacy, if you'll notice, I said IF that is what she thinks. The quote above does give the impression that is what you are thinking. If I am wrong, accept my apology. In fact, I have a better idea. You stay and I'll join some of the others in hiatus. This board has gone to hell and basically, I'm getting very tired of the b.s.
But that is just not true .. the credit agencies and the BK atty's would have you believe that .. judgements generally ONLY occur when folks ignore them. If you challenge then they tend to go away and fast. Very few CA' want a legal battles. It cost them a lot more than it can cost you . They have to use Atty's you don't. CA's win by breaking the rules and preying on the ignorant period. We win by education and application of the law the LEGAL way. Ever noticed a bully only picks a fight with percieved weaker apponents. Ca's are no different, the minute you start the battle the CA's become much weaker, Simply because once they understand you know the law their game is over. Trust me I enjoy dealing with CA's on the phone It's sport whcih you become the umpire and the offence and they have to resort to defence once they are on the defence game set match LOL It's a mind set your need to adopt YOU HAVE THE POWER.And in time the CA's by their on stupidity for the most part INCREASE YOUR POWER When i said that I considered all alternatives i ment that. if my accounts charged off and im issued judgements thats no better than filing the bk.
StacyPA Sorry to hare about your difficulties. In your situation filing CH 7 BK is probably best. In general I think that when ones credit card and other unsecured debt is equal to or greater than your annual income you are a good candidate to file CH 7. Especially if you don't own a house yet. I filed on 11 cards in 97 and now have pretty much restored my credit. I recommend you give the car back and include it in your BK. From what you said you are upside down by $6,000 on the car. Give it back and purchase a cheep one for a while. A good site for this is http://www.autotrader.com. If you don't include the loan there is a possibility that the lender may reposes the car after the BK. I would include the Perkins and university loans as well. As far as reaffirming debt, if you are going to buy a used car you probably won't wave the money to do it. If you had a five your old credit card account with a small debt like $500 it might be worth reaffirming it to give you a longer credit history. Otherwise I wouldn't worry about it. Good luck.
