Hello everyone, I need some serious advice about filing a Chapter 7. I have already spoken with an attorney regarding my situation. I will briefly describe my situation. I earned $33,000 a year. My credit score is currently 430. I have a car note(paying on time) I have no open credit accounts. I have appox. $12,000 dollars in debt with a lease car balance of 2799.00 for mileage overage and a student loan of 1000.00 included in that amount. I have one child and I'm 36 years old. I am so confused on what to do. I have heard so many stories about filing bankruptcy. I am scared! I guess what I need advice on is can I repair my credit without considering BK. Can someone help!! Thanks
I guess I don't fully understand your situation. What do you mean you're $12,000 in debt? To whom? Chances are your $1000 student loan is a government loan which you will not be able to include in your BK, should you file. You have $33,000 coming in but what is going out? Rent, bills, etc.? You don't have any credit cards so where is the money going? Not being nosy, just need more info to decipher your situation. Take a deep breath and relax. We'll figure out your situation and give you some good advice. Please just fill us in with lots more information. What did your attorney tell you? Any child support coming in? When is the lease on your car due? Etc., Etc.
Thanks for responding broncsboi My attorney indicated that I could go either way meaning pay off my debts or file CH 7. He indicated that since my income is low and my payout each month is high. I really dont enough money to make arrangement with CO. The $12,000 is all credit cards, utilities bills, phones etc. My rent is $800 plus utilities each month, latch key $100.00 each month and other household expenses, my car note is $285.00 plus insurance each month($150.00). My car is financed for 5 years and this is only the 7 month. I received $300.00 each month for child support. I feel like a rat in a maze. Because when I do make arrangements it appears most of the money goes to the interest and it is still accumulating as we speak. I am been renting all my adult life, eventually I want to by a home but in order to get a mortgage my credit has to cleared of all debts; per mortgage counselor. I hope I provided you with enough information. Thanks for your help, MOnise
Go to a NFCC ---CCCS credit counseling agency . It will cost you next to nothing and they can help you with a budget projection. They can also show you what the possibilities are as far as interest reductions are concerned. It will help you get a better picture of just what your possibilities are. From what I can tell you have a good chance of working out your problems without resorting to bankruptcy. Housing and car payments are within reason for your income.
