Do I file? Is it my best option? Debts killing me.

Anonymous · ‎03-21-2018

Im 21 still in school for 2-3 more semesters and I made terrible decisions and continue to do so. I don't know what to do anymore, I've been all messed up because of this and I feel like my life is ruined. My debts are:

2,273.42 Credit Card
2,202.41 Credit Card
1,890.30 Credit Card
2,017.17 Credit Card
1,001.35 Credit Card
5,400.46 Credit Card
1,700.12

Interest Free Cards:

5,590.46 Credit Card
4,799.96 Credit Card

Loans:

5,161.60 Loan (monthly payment of 256)
Around 18,000 Loan (Monthly Payment of 456)
Car Loan ($350 a month)

As I write this I'm shaking, I'm at about 50000 in debt. At what point do I decide to file bankruptcy? I make $15 an hour at my current job working 40 hours a week, I go to school during night. I know I won't lose my school loan or car loan (as thats in my parents name) I feel like bankruptcy might be the best option, Im 21 now, I don't expect to be buying a house before I'm 30 but I mean who knows. Once I graduate college I'll be making around 55k the day I graduate as I already have an offer at my current job.

So if I filed i would knock off about 30-35k in debt, and only have two monthly payments of 456 and 350 and i bring home around 1800 a month .

Anonymous · ‎03-21-2018

You know the answer already. You cant pay all your debt with $15 an hour job/ 40 hours a week. It will take forever. Granted!!!

Plus you still in school. With this kind of financial stress, you cant concentrate on school and your grades will be falling as well.

I have been there 4 years ago. And I learned from my mistake. Do your research about BK lawyer in your city, usually only cost you under $2,000 give or take and start a new chapter in your life One more: STOP using ALL cards as today!!!

Anonymous · ‎03-22-2018

I'm curious did you buy anything of value? such as collectables, furniture, car,etc?

Anonymous · ‎03-22-2018

Not really. I wish I did :/

Anonymous · ‎03-22-2018

@Anonymouswrote:
Not really. I wish I did :/

I wasn't judging btw after many posts people do bounce back and even better so don't stress hang in there.

Anonymous · ‎03-25-2018

Hey. You feel worked into a corner, but believe it or not, that is what this law is written for. And as long as you get busy researching and learning the bankruptcy and credit systems, and #1 most important - basic financial skills so that you never get into this situation again - then you can work yourself out of that corner.

Look up NOLO bankruptcy site. Start reading on Chapter 7, which depending on your state you should qualify for. Just read what looks relevant to you, and keep clicking around. I would keep a notebook nearby and take notes, and make sure you put stars next to any questions that come up. Those will be for your attorney to answer...

This site is here for you to learn about credit. There are several good spots to start (Ch7 to 700, ABCD2199's 11 rules for rebuilding), but really you will just want to keep an eye on the forum and read different people's situations and see the responses. That's the best way to learn. And we are here to answer Q's.

As for that attorney. Where you work, do you have an Employee Assistance Program (EAP)? EAPs will have legal referral services and are required by law to keep your issues confidential from your employer (except in certain cases e.g. if you threaten harm to someone). Ask your employer if you have an EAP. Your school may also have a referral service, depending how large it is. You can also just do a good old-fashioned internet search. I would recommend consulting with at least 2 lawyers before signing any papers. Consults are free. Get all your questions answered - and see who knows the answers, who is willing to find out answers they may not know and who blows you off, etc. and just in general who you get along with. Who actually answers you when you call/email... etc. Don't just sign because you feel desperate. You're gonna have to save up your filing fees anyway, that takes time.

If this is the direction you decide to go - and remember, you can consult with attorneys and still decide not to file - we will be here to help you with rebuild and everything. A Ch7 stays on your credit report for 10 years. But you are young (so am I, 10 years ahead of you though) so at least it will be gone relatively soon for you.

Your life is not ruined. No matter what you do, you CAN make good of it.

Anonymous · ‎03-26-2018

OP is in tough spot. Creditors will sue and try to get judgments due to your age. They know in the future you will make a lot more and need credit at some point.

This is is case where bk might be option. I would also look to change any habits that got you here.

Your life is not ruined. Over 1m people file every year due mostly to illness, job loss or divorce. Hang in there. It will get better

Anonymous · ‎03-28-2018

It is not the end of the world. I, too, was feeling down, depressed, and stressed constantly, before I filed last year (type: BK 13 at 41). Considering all things that you have mentioned, it might not be a bad decision to take a hard look at filing. Be smart about filing, though. Weigh your options and do research - don't just automatically file and, if you do decide to file, don't just go with the first attorney that you speak to. Also, be smart about your finances going forward. It is easy to slip into having credit issues. When I was your age, creditors were constantly throwing credit cards at me, knowing full well that I really didn't have a true means of paying them back. Why they do this, I don't know. I believe you will make the right decision for yourself. You'll be fine.