In a Galaxy not so far away, my credit is awesome, and now im back to reality. Bankrupcty it is :(

[Alexj931]

Hello, im not new to FICO in general , new to the bankruptcy forum. Im currently 25 and in trouble lol. I roughly have 8 grand in credit card debt (that has been charged off, collections etc,) about 3200 in medical bills that is the same. and a 15, 000 loan for a motorcycle that unfortunately cannot pay (and have not been paying) I have tried to clean up my credit and saw some light when i was paying some off but of course emergencies happen (and stupidity) and i went back into the hole. I have no mortgage but rent and own my car. Im going to take the plunge and attempt to start from scratch. I have looked at Soulmasters 24 month plan and that's what i plan i starting to do, i have a good job just truly upside down on a lot of bills right now, Im currently going to school and have no bad student loans (thank goodness)

I was wondering when i do file, i know they are going to take away the motorcycle to try to get some money from it. Question is i get many letters from the CA that currently has it telling me if i have 3,400 right now i can consider the debt paid and they will stop attempting to collect it. the bike itself costs around if i have the 3400, and attempt to get it would that look bad in the 341 hearing? I think it would look bad, to be honestly i don't want the bike anymore its giving headaches and just truly not worth the headache.

Thanks.

Current FICO EQU:551  TU 503   EXP 539 as of 12/01/2014

[StartingOver10]

It sounds like you have already filed Ch 7, right?

If so, let go of the bike. It will free you up to start again.

[Alexj931]

Thanks for the input, I have not started Ch7 yet, i went around 2 weeks ago to my lawyers office, getting everything siutuated mow (paperwork, listing all my CA, just trying to build a "file" per say with all the correct information,)

THANKS for the information!!!

Another question i have is i have a credit union right now, what happens to that credit union when i have a discharge?

Thanks,

[StartingOver10]

Do you have a loan or cc with the credit union or just your checking and savings accounts? It makes a difference.  A credit union automatically cross collateralizes the debt against your funds so you don't want to file with the funds in your bank account and still owe the CU. Speak to your attorney about this.

If you owe money to the credit union then take your money out of the checking and savings and open new accounts elsewhere (stay away from Wells Fargo).

If you don't owe any money at all, then you are probably safe to leave the checking and savings funds where they are now, in the CU, but again, speak to your attorney.

[DaveInAZ]

A couple things: You say you have $11,200 in CC & medical debt and the 15k motorcycle loan. Is that your total debt? It doesn't seem like an insurrmountable amount of debt. altho you don't mention your income situation. As for the bike, if you think it's worth $3500 & have the $$$ you can do it before filig BK, but I'm pretty sure you'll then have to wait 90 days to file, otherwise the Trustee can object, saying your were playing favortism with the bike debt over the medical & CC  creditors. I'm not sure what your mean about the credit union - if a credit union is one of your creditors then the debt would be discharged and credit unions have long memories for BK, they won't give you credit again for a lont time.

[casmith1980]

FWIW, I bank with Wells Fargo and filed BK Chapter 7 12/5/14....I didn't have any problems with them freezing my account (although my balance when I filed was less than $50). Since filing, I've had a bonus check and paycheck get deposited with no issues (granted, I'm still under the $5,000 limit that WF typically freezes). 

[Alexj931]

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@StartingOver10 wrote:

Do you have a loan or cc with the credit union or just your checking and savings accounts? It makes a difference.  A credit union automatically cross collateralizes the debt against your funds so you don't want to file with the funds in your bank account and still owe the CU. Speak to your attorney about this.

Its just a checking and savings account, no loan

If you owe money to the credit union then take your money out of the checking and savings and open new accounts elsewhere (stay away from Wells Fargo).

I hate Wells Fargo regardless! but thanks for heads up

If you don't owe any money at all, then you are probably safe to leave the checking and savings funds where they are now, in the CU, but again, speak to your attorney.

THANKS

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[Alexj931]

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@DaveInAZ wrote:

A couple things: You say you have $11,200 in CC & medical debt and the 15k motorcycle loan. Is that your total debt? It doesn't seem like an insurrmountable amount of debt. altho you don't mention your income situation. Its about 15K in Medical ,Credit Cards and misc crap , and then 15K on the motorcycle. My income is low im a student so it sucks its like 39 Year. but i have attempted to PFD letters to a lot of the Collection Agencies but nothing its frustrating,

As for the bike, if you think it's worth $3500 & have the $$$ you can do it before filig BK, but I'm pretty sure you'll then have to wait 90 days to file, otherwise the Trustee can object, saying your were playing favortism with the bike debt over the medical & CC  creditors. The bike is worth more than 3500, but the collection agency just wants to get rid of the debt before the SOL falls this year, thats why i think they are attempting to offer it that low. truthfully im just trying to get away from the debt as a whole. anything to get rid of it.would help but i also dont wanna look like a criminal in fromt of trustee , and creditors.

I'm not sure what your mean about the credit union - if a credit union is one of your creditors then the debt would be discharged and credit unions have long memories for BK, they won't give you credit again for a lont time. I dont owe the credit union anything thank goodness, i just have it for my checking and savings

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[Alexj931]

I would also like to point out that, many of my friends family, have told me just to stick to the paying for deletes and goodwill since my debt isnt that much pers say i just dont know which route is the best for me to go?

If anyone else was in my shoes would they try rebuilding as is or Chapt 7?

Like i said before im a junior in college, only making around 39-41 a year with roughly 30K in debt 15 being CC+ Medical and 15 being a Motorcycle Loan with HSBC

Thanks,

[Anonymous]

Weigh the pros and cons. Do the math.

Trying to pay off your debt is always the preferred option. However, it's not always possible and that's what BK laws are there for.

When my husband and I filed, we had even lower amounts of debt. But our income had dropped significantly and basic math said it would take us over 15 years to pay it off if we never had another job loss, never had an emergency, and didn't try to save anything.

We filed.