topic Interested in filing need some advice. in Bankruptcy

Interested in filing need some advice.

Anonymous — Wed, 15 Feb 2017 02:31:55 GMT

Hi all,

I have been a reader of these forums for many years and can say I have gained some really good info. Sadly I find myself posting here because I'm in a bind and need some advice.

Background info:

At 17 I was approved for a Jc penny store card for $3500. Maxed out within 2 months. Discovered I could use it at cvs for gift cards. Never used it at JC penny actually.

Also was approved for $500 on a capital one card.

Lied on both applications saying I was 18 yet I was really 17. In high school had a part time job that paid for my car insurance and gas lol.

As you can imagine bad news collections before I even graduated. The path contained for a few years and ended up cleaning my act up in 2012 and had a high score across the board of 680 I believe.

Opened and closed 2 car loans and have about 2 dozen cards at this point all with low limits and high balances.

Present day I am 25 and have the following debt:

Collections: $5000
Revolving card balances: $6000
Auto loan that was charged off and then totaled: $9800 (cap one willing to settle for $3200)
And probably another $2000 in other random debts

4-6 darogatory marks
20-30 inquiries

I currently have 4-5 cards in good standing (paid on time) but almost maxed out.

I also have a lease with Lexus financial in food standings. Purposely did a longer lease in 2015 in case I did file.

I just feel that I can't get myself out of this hole. Every month I'm left with about $1300 to save which is not too much not to mention I need to live eat go out etc. making $57k a year.

What to do? I see everyone has such success after filing. And I don't doubt that I won't, it's just hard to see my self filing. I want to buy an apartment but can't with the current state of my credit. Would love one credit card because I currently use and pay about $1300 of that savings on one single card now. So one credit card would be great!

Any advice would be helpful or any recommendations as well. I am in northern New Jersey.

Thanks guys!

Re: Interested in filing need some advice.

Anonymous — Wed, 15 Feb 2017 04:25:51 GMT

If you pay your bills and have $1300 left, you probably don't need to file IMO. You just need to use that money to pay down your debts.

Re: Interested in filing need some advice.

j_casteel — Wed, 15 Feb 2017 07:33:08 GMT

You don't have that much debt, you seem to be looking for an easy way to get rid of your debt and possibly end up in the same situation down the road.

BK is nuclear last resort. If you have "extra" money then you need to be investing into your debt, and seek free counseling on how to budget and get your finances in order.

Good luck

Re: Interested in filing need some advice.

Anonymous — Wed, 15 Feb 2017 16:03:09 GMT

The first thing to do here is create a budget and determine how much money you have left over after all your necesdary expenses are accounted for. Determine if this can be used to pay down your debt.

As previously stated, you dont have an excessive amount of debt, given your income.

More importantly, I am concerned about your focus on having a credit card and buying a home, as opposed to preventing indebtedness. You need to think carefully about how you got here and what needs to change in order to prevent this from happening again.

Consider your other options like settlement, 401k loans, credit counseling, etc.

If you choose to file, you will be prevented from buying a home for a minimum of 2 years.

Re: Interested in filing need some advice.

StartinOver — Wed, 15 Feb 2017 17:09:01 GMT

There is a financial criteria you must meet to even file. Check that out first to see if you are even able to.

Re: Interested in filing need some advice.

Scupra — Wed, 15 Feb 2017 17:34:14 GMT

I think before filing you should take a long hard look at your budget. It sounds like there may be places to cut from. Also, stop using your credit cards all together, use cash or debit. It sounds like you can dig your way out but it won't be easy. Good luck!

Re: Interested in filing need some advice.

Anonymous — Wed, 15 Feb 2017 18:15:15 GMT

@Anonymous wrote:
Hi all,

I have been a reader of these forums for many years and can say I have gained some really good info. Sadly I find myself posting here because I'm in a bind and need some advice.

Background info:

At 17 I was approved for a Jc penny store card for $3500. Maxed out within 2 months. Discovered I could use it at cvs for gift cards. Never used it at JC penny actually.

Also was approved for $500 on a capital one card.

Lied on both applications saying I was 18 yet I was really 17. In high school had a part time job that paid for my car insurance and gas lol.

As you can imagine bad news collections before I even graduated. The path contained for a few years and ended up cleaning my act up in 2012 and had a high score across the board of 680 I believe.

Opened and closed 2 car loans and have about 2 dozen cards at this point all with low limits and high balances.

Present day I am 25 and have the following debt:

Collections: $5000
Revolving card balances: $6000
Auto loan that was charged off and then totaled: $9800 (cap one willing to settle for $3200)
And probably another $2000 in other random debts

4-6 darogatory marks
20-30 inquiries

I currently have 4-5 cards in good standing (paid on time) but almost maxed out.

I also have a lease with Lexus financial in food standings. Purposely did a longer lease in 2015 in case I did file.

I just feel that I can't get myself out of this hole. Every month I'm left with about $1300 to save which is not too much not to mention I need to live eat go out etc. making $57k a year.

What to do? I see everyone has such success after filing. And I don't doubt that I won't, it's just hard to see my self filing. I want to buy an apartment but can't with the current state of my credit. Would love one credit card because I currently use and pay about $1300 of that savings on one single card now. So one credit card would be great!

Any advice would be helpful or any recommendations as well. I am in northern New Jersey.

Thanks guys!

Live, go out, eat. Live and eat should be one category. You can eat beans and rice or ramen if you have to; or make spaghetti LOL. LOTS of ways to cut down on eat budget! The go out? Nope. Cut that down too until you are out of this hole. I am with the others: Sounds like you just need to budget big time, live beneath your means for a while and get out like that. I wouldnt be looking for that easy fix. If all this time you have continued to charge up instead of reining it in, there might be a bigger issue here. I'd address that as well.

Re: Interested in filing need some advice.

Anonymous — Wed, 15 Feb 2017 19:24:36 GMT

Have you thought about debt management vs bk? It's def a learning curv as well and is helpful. It will basically work on your best on your open CCs that aren't in collections. They will work wih the creditor and get your APR lower so you're actually paying it off vs interest. They can help set up monthly amounts for the accounts in collections, maybe even help you with the SIF and Cap One. I would contact a NON PROFIT debt consolidation company. Working in collections as long as I have, Debt Reduction Services is THE BEST one I've dealt with. They are the least amount in fees ( which aren't much) and will actually help you. Stay awa from Money Management, CCCS, Or Consumer Credit Counseling.. they are the absolute worst.

Re: Interested in filing need some advice.

Anonymous — Wed, 15 Feb 2017 19:45:41 GMT

First of all, I commend you for posting your issues/problems here in the forum. A great first step to recovery. Welcome to the forum!

Secondly, I agree with other posters that bankruptcy should probably not even be on the table. What should be on the table is a good tight budget that includes regular savings and paying down your bills.

Priortize your needs vs your wants and only take care of your needs. It is a really hard lesson to learn, but it will serve you well. I spent five years in Chapter 13 purgatory where I budgeted how many tanks of gas I would buy per month. (Just an example, but a true one.) What I learned was discipline and training myself to needs vs wants and it was really tough.

The outcome is that now I have amazing credit, but no "itch" to buy anything unless it is a 'need." Now I have the room in my budget to buy something that is totally a "want" and it doesn't effect my long or short term goals.

Step One you have already done! Kudos to you!

Step Two is to make that budget and stick to it. If you stumble though, don't beat yourself up. Just start again.

Step Three is keep on working on the problem.

If you need us, we are here for you. Nothing I posted is "the only way." Just my thoughts and experiences in hopes they might trigger your own plan. Good luck!

Re: Interested in filing need some advice.

Anonymous — Wed, 15 Feb 2017 20:56:07 GMT

@Anonymous wrote:
First of all, I commend you for posting your issues/problems here in the forum. A great first step to recovery. Welcome to the forum!

Secondly, I agree with other posters that bankruptcy should probably not even be on the table. What should be on the table is a good tight budget that includes regular savings and paying down your bills.

Priortize your needs vs your wants and only take care of your needs. It is a really hard lesson to learn, but it will serve you well. I spent five years in Chapter 13 purgatory where I budgeted how many tanks of gas I would buy per month. (Just an example, but a true one.) What I learned was discipline and training myself to needs vs wants and it was really tough.

The outcome is that now I have amazing credit, but no "itch" to buy anything unless it is a 'need." Now I have the room in my budget to buy something that is totally a "want" and it doesn't effect my long or short term goals.

Step One you have already done! Kudos to you!
Step Two is to make that budget and stick to it. If you stumble though, don't beat yourself up. Just start again.
Step Three is keep on working on the problem.

If you need us, we are here for you. Nothing I posted is "the only way." Just my thoughts and experiences in hopes they might trigger your own plan. Good luck!

I agree with this 100000000000000000000000000000000000%. I too was in Ch 13 for 5 years, actually 4, paid off early, but I REALLY had to determine need vs want and now almost 2 years later those habits are still with me! I still have a hard time 'splurging' even though a splurge to me is a common daily occurance for many. If I had known what I found out after BR (as it pertains to student loans), I MIGHT have been able to avoid 13 altogether. I dont know that for certain, nor do I know if I'd have the 'life' I have now had I not gone through those trials for the first couple of years of the BR. Anyway, just dont pull the trigger until you absolutely know you have to; consult with an atty. Thats what I did at first.

Re: Interested in filing need some advice.

Anonymous — Fri, 17 Feb 2017 03:57:16 GMT

Thank you for your kind introduction and reply. I know I'm not alone out there, me and a million people are in the same boat.

I know this will sound crazy but I have already made adjustments to my life style. Paying these bills down really sets me back mentally (may be a poor choice of words) I'm Use to living what I consider, large. Late teens early 20s always beautiful cars, good resturants, clothes like you can't imagine.

Met someone and moved in together. Going on 3 years I've made what I consider big adjustments. From no more shopping sprees, to not eating at resturants on a regular basis, to even cheeping out on personal hygiene products such as tanning, cosmetic products, colognes. I consider this an adjustment. Unfortunately moving into our first place we needed things and racked up credit cards. He was able to handle better then I was.

Current monthly bills I need to pay to "stay alive"

rent: $2160 (split between two people)
car: $640
insurance: $160
cable: $200 (split between two people)
furniture bills: $130 (split between two people)
electric: $40 (split between two people)

Roughly this adds up to $1035 - leaves me with about $1000 a month. Can't pay almost 14 cards minimums and have a life. Even if it was sitting home with Raman noodles, just doesn't seem practical.

This whole saga I'm writing is just the truth I'm not looking for rude comments. Do I live beyond my mean state yes. Rent cost here in NJ is the big reason I want to buy. I could probably say hundreds a month if we owned something.

lassrly- I added up just a few collection/ cc bills I found and I'm at 5000 that's not even the half of it. I'm guessing it's another 6-7k. Seems un manageable.

Ive done things like change my license and cars to a different state to save hundreds. I'm trying here trust me!

Re: Interested in filing need some advice.

j_casteel — Fri, 17 Feb 2017 06:15:17 GMT

Cutting back isn't skipping eating out once in a while and missing your tanning appointments. It's not continuing to use your cards and not make payments. If you have $1000 "left over" then you should be investing into your debt and going without until you pay it off. 10-12k in debt is not much especially when you admittedly live above your means.

STOP using your cards, cancel cable, sell stuff, NO eating out at all, use cheap soap and shampoo, etc sell your car and get a beater.

You say you want to buy a place, but can't budget now, and if you file bankruptcy you won't be eligible to purchase in 2yrs anyway.

If you really cutback on things, make a real budget then you should be able to snowball that debt away fairly quickly and be in a much better place quicker than filing BK for 10-12k debt.

I ended up filing chapter 7 after contemplating it for 2 years. I was never late on anything but was ribbing Peter to pay Paul. I had over $100k in CC debt fir numerous reasons. We canceled everything we could, and sold both our vehicles, and stopped using cards for over a year. Went without if we didn't absolutely need it. We still ended up having to file simply because we were going further into debt each month we didn't file and I finally went and seen a lawyer who assessed our situation and said you should've done this a long time ago, but I tried everything to prevent it.

Fortunately it has been going well and been smooth, but it wasn't the process I wanted to take. I had to do what was best for me and my family and BK was the best choice, but not an easy one.

Maybe I'm getting the wrong vibe but it just seems like you got yourself into a little debt and continue to spend but wanna try to wipe it away. That's fine, whatever....You just have to address the real issue (spending) or you're going to end up in the same situation but not be able to file again for 7yrs.

Re: Interested in filing need some advice.

Anonymous — Fri, 17 Feb 2017 14:40:47 GMT

Yeah for $12K in credit cards, so not worth filing BR.

Re: Interested in filing need some advice.

Anonymous — Fri, 17 Feb 2017 15:36:19 GMT

@Anonymous wrote:
Thank you for your kind introduction and reply. I know I'm not alone out there, me and a million people are in the same boat.
I know this will sound crazy but I have already made adjustments to my life style. Paying these bills down really sets me back mentally (may be a poor choice of words) I'm Use to living what I consider, large. Late teens early 20s always beautiful cars, good resturants, clothes like you can't imagine.
Met someone and moved in together. Going on 3 years I've made what I consider big adjustments. From no more shopping sprees, to not eating at resturants on a regular basis, to even cheeping out on personal hygiene products such as tanning, cosmetic products, colognes. I consider this an adjustment. Unfortunately moving into our first place we needed things and racked up credit cards. He was able to handle better then I was.
Current monthly bills I need to pay to "stay alive"
rent: $2160 (split between two people)
car: $640
insurance: $160
cable: $200 (split between two people)
furniture bills: $130 (split between two people)
electric: $40 (split between two people)
Roughly this adds up to $1035 - leaves me with about $1000 a month. Can't pay almost 14 cards minimums and have a life. Even if it was sitting home with Raman noodles, just doesn't seem practical.
This whole saga I'm writing is just the truth I'm not looking for rude comments. Do I live beyond my mean state yes. Rent cost here in NJ is the big reason I want to buy. I could probably say hundreds a month if we owned something.
lassrly- I added up just a few collection/ cc bills I found and I'm at 5000 that's not even the half of it. I'm guessing it's another 6-7k. Seems un manageable.
Ive done things like change my license and cars to a different state to save hundreds. I'm trying here trust me!

Your car and cable obligations seem quite extravagant, to be honest.

I'm not sure you fully grasp the entire cost of homeownership in this area.

Also, having your license and cars registered in a different state is insurance fraud. If you get in an accident they won't pay and you can even go to prison for it.

Re: Interested in filing need some advice.

Anonymous — Fri, 17 Feb 2017 21:02:03 GMT

Yeah, get rid of taht $640 monthly car payment _ NO ONE needs a car payment that high if they are in debt. PERIOD. Cancle cable, if you NEED internet then go and locate a budget internet provider in your area, such as qwest/centurylink. It might not be things you want to do, but it's things you need to do. Do you go and buy lunch every day? Stop that and brown bag it. You need to learn how to budget and what is a need vs a want. Your WANTS are outnumbering your needs. Honestly, close all your cards and go through a debt management company. They can help offer you classes as well to help yourself to financial freedom. You have no reason to file with such a low balance. You stated that you didn't learn at an early age, and it doesn't seem as if you have learned even now.

At the end of the day it's your financial future, however a bk attorney and a trusee is gunna look at you like you are friggen crazy to not pay bills but you can afford a $600+ car payment?

Re: Interested in filing need some advice.

Anonymous — Fri, 17 Feb 2017 21:22:31 GMT

car is a lease. no way out. swap lease is not option as I over pay for car as is. Not that I have an excuse for everything but just handing my car in will hurt my credit even more. price to drive a new car is not cheap these days folks.

Re: Interested in filing need some advice.

j_casteel — Fri, 17 Feb 2017 22:18:01 GMT

@Anonymous wrote:
car is a lease. no way out. swap lease is not option as I over pay for car as is. Not that I have an excuse for everything but just handing my car in will hurt my credit even more. price to drive a new car is not cheap these days folks.

if you haven't been making payments on your CC's then your credit is already shot for the time being and will need to be rebuilt. $640 is a HUGE payment for someone that is in debt. I agree vehicles are not cheap these days, especially when you're buying expensive cars. There are 100s of new vehicle options that people can get and still stay in the sub $300/mo range. You have a lease, and usually those are even cheaper than financing so it leads me to believe you have a very high end luxury vehicle.

at the end of the day...do what you whatever you want, but since you came here looking for advice then i suggest you take notice on your spending and budget like has been mentioned several times. That and it's time to start sacraficing and selling things. You have to prove to the courts that you have no other option, and they will go through all of your finances with a fine tooth comb. I suggest you contact a good BK lawyer in your area if you feel this is the option you must take. Otherwise, stop wasting money. (stop wasting money regardless )

Re: Interested in filing need some advice.

wa3more — Sat, 18 Feb 2017 01:29:10 GMT

i agree with others , would not BK and only use as last resort.

It's when you are sued and they have judgments and go after bank accounts and paychecks. you can always fight, settle or use the arbitration card to gain leverage.Some creditors might sue, some might not. Save BK.

Re: Interested in filing need some advice.

sarge12 — Fri, 03 Mar 2017 20:41:13 GMT

You stated that you lied about your age on an application...that may cause you problems, it may even be a felony. I would be very careful and consult an attorney before I did anything. In the future keep in mind it is always a bad idea to lie on a credit application...always!!! It might not be an issue though since it was 8 years ago and you were a minor.

Re: Interested in filing need some advice.

wa3more — Fri, 03 Mar 2017 23:06:18 GMT

good point sarge. I missed the age part.

I believe the OP would lose the ability to file BK due to the fraudulent application.