@calibu0n wrote:
I can't sell the car because I need it for school and family. I commute 1 hour roundtrip everyday. Will the creditors really bring people to court for the amount of 5k or higher? Can I file bankruptcy and transfer my car to my relative to avoid asset seize?
To me this reveals a lot. It sounds to me like you're looking for ways to GET OUT OF paying...not looking for ways TO pay. What you have asked about...transferring assets to avoid losing them in BK is unethical and I think illegal. And you're surprised that the creditors actually want the money back that they loaned you? Yes, they will and SHOULD take you to court. You borrowed the money when you needed or wanted it right? Why do you think they would be ok with you not paying it back?
You've been given some very good advice on here. You borrowed the money, now find a way to pay it back. If you can't afford to pay your bills then in my opinion you can't afford to be in school right now. You can always go back to school and finish when you're in a better finanical situation. So if you need to...drop out of school and get a full time job OR TWO...and pay your bills! And like one poster brought up...I doubt if there's a pizza place that isn't hiring drivers...there are lot's of jobs you can do...you just have to go find them.
Learn to live within your means...or perferrably...well below your means. If you have cable, cancel it...cell phone, cancel or get a cheaper plan....stop eating out, stop going out with your friends. Budget your money. You may need a car...but I don't know how much your current car is worth...so you may not need THAT car. You can get a pretty reliable car for pretty cheap nowadays. A lot of people that I see get into financial trouble have cars that are way more expensive than what they need...but many of them want to claim BK and avoid paying their bills so they can keep their nice car. Cars come and go...you can always get a better one later.
Take the advice that people on here are giving you...you CAN get through this without filing BK or defaulting. You just have to WANT TO.
Fox
Let me tell my story.
Sometime in 2008 I got a Chase credit card with a 5k limit. I was still new at credit. I had one other CC with cap1 that had a $500 limit that I had for about a year.
Anywho, I didn't app for the Chase card (I can't remember what kind it was. I don't think freedom existed yet.) I got the card because I went to a Chase branch to open a savings account and while there the woman told me I was pre approved. Without even asking me whether I wanted the card she just automatically hit the submit button and got me approved. Yeah, I could have told her I didn't want it but I was young (about 22 or so) and the card had a 5k Limit! Lol.
For the first several months I managed the card well up until March 2009 when my 2006 Pontiac G6 got repoed. I hated that car so I really didn't care. This is where I got stupid. REALLY STUPID! I used that 5k Chase card to buy a used 1996 Chevy Lumina. I paid approximately 3k for the car and I already owed Chase 1k already. The car was junk (of course). Had 144k miles on it and i didn't have the thing for a full 24 hours before it broke down on me as I was on my way to work. Needed a new fuel pump. Luckily I was able to find an alley mechanic who installed a new one for 250. The dealer wanted about 800.
For the rest of the year the car ran fine (although I had no heat or a/c).
Around March 2010 the car devoloped more serious issues and to make matters worse I lost my job over the winter. By this time I was about $200 over the limit. They hadn't called at all until about mid march but I couldn't pay them since I had no car or job.
May 2010 a sherriff shows up to my house and hands me court papers. With interests and late fees the CC debt ballooned to approximately 6k even. I went to court but they couldn't sue since I didn't have a job. They told me to call immediately when I find one. I said "ok".
June 2010 I get a part time job at Fedex. You guessed it. I didn't call them. Nor did I in July or August. ArOund late August I went to my Chase bank account to check my checking account and noticed the numbers "12000" in parentheses. I called to see whats that about. They told me my accounts were frozen (checking and savings) and that 6k was doubled up. I didn't owe 12k, no, but that is just what happens, as they told me, when you owe debt. She said it will go away once I started paying.
My accounts were frozen a whole month and a week. They didnt unfreeze til October 8 2010 (yes I still remember the exact date lol). To make matters worse, during the time my accounts were frozen I was getting direct deposit from Fedex and couldn't touch none of THEIR money AND my grandma died in August of 2010 so you know I was a destroyed human being.
I agreed to pay em 130 a month for 5 years. Interestingly it was 0% interest. YES I PAID NO INTEREST. Normally It would have been 9% but I was blessed that day.
In March 2011 I found a better job then Fedex which I am still working at. In December 2012 I settled the account and they closed it out. I owed about 1700 but they settled for 1000.
I still like Chase and hope to do business with them again but if not I am happy with the cards I currently have. It was rough and I learned a lot but I could have still learned without going through so much. Do not let Pen Fed go into ddefault. Like everyone here said sell what you can and try to pay off that account as quickly as possible. It will save you a LOT of headaches. Trust me.
Sometime in 2008 I got a Chase credit card with a 5k limit. I was still new at credit. I had one other CC with cap1 that had a $500 limit that I had for about a year.
Anywho, I didn't app for the Chase card (I can't remember what kind it was. I don't think freedom existed yet.) I got the card because I went to a Chase branch to open a savings account and while there the woman told me I was pre approved. Without even asking me whether I wanted the card she just automatically hit the submit button and got me approved. Yeah, I could have told her I didn't want it but I was young (about 22 or so) and the card had a 5k Limit! Lol.
For the first several months I managed the card well up until March 2009 when my 2006 Pontiac G6 got repoed. I hated that car so I really didn't care. This is where I got stupid. REALLY STUPID! I used that 5k Chase card to buy a used 1996 Chevy Lumina. I paid approximately 3k for the car and I already owed Chase 1k already. The car was junk (of course). Had 144k miles on it and i didn't have the thing for a full 24 hours before it broke down on me as I was on my way to work. Needed a new fuel pump. Luckily I was able to find an alley mechanic who installed a new one for 250. The dealer wanted about 800.
For the rest of the year the car ran fine (although I had no heat or a/c).
Around March 2010 the car devoloped more serious issues and to make matters worse I lost my job over the winter. By this time I was about $200 over the limit. They hadn't called at all until about mid march but I couldn't pay them since I had no car or job.
May 2010 a sherriff shows up to my house and hands me court papers. With interests and late fees the CC debt ballooned to approximately 6k even. I went to court but they couldn't sue since I didn't have a job. They told me to call immediately when I find one. I said "ok".
June 2010 I get a part time job at Fedex. You guessed it. I didn't call them. Nor did I in July or August. ArOund late August I went to my Chase bank account to check my checking account and noticed the numbers "12000" in parentheses. I called to see whats that about. They told me my accounts were frozen (checking and savings) and that 6k was doubled up. I didn't owe 12k, no, but that is just what happens, as they told me, when you owe debt. She said it will go away once I started paying.
My accounts were frozen a whole month and a week. They didnt unfreeze til October 8 2010 (yes I still remember the exact date lol). To make matters worse, during the time my accounts were frozen I was getting direct deposit from Fedex and couldn't touch none of THEIR money AND my grandma died in August of 2010 so you know I was a destroyed human being.
I agreed to pay em 130 a month for 5 years. Interestingly it was 0% interest. YES I PAID NO INTEREST. Normally It would have been 9% but I was blessed that day.
In March 2011 I found a better job then Fedex which I am still working at. In December 2012 I settled the account and they closed it out. I owed about 1700 but they settled for 1000.
I still like Chase and hope to do business with them again but if not I am happy with the cards I currently have. It was rough and I learned a lot but I could have still learned without going through so much. Do not let Pen Fed go into ddefault. Like everyone here said sell what you can and try to pay off that account as quickly as possible. It will save you a LOT of headaches. Trust me.
