topic Re: debating on Chapter 7... in Bankruptcy

debating on Chapter 7...

Anonymous — Tue, 02 Jul 2019 20:38:42 GMT

Hello i just want to say im new here and i'll just dive right in!

Im in a similiar situation as mysteryofthemoon. Im a 35 year old male and in 62k of unsecured debt.. 52k of which is credit card debit and 9k are unsecured personal loans. I recently bought the house I was renting from my parents last fall for 265k, luckily a gift of equity enabled me to put down 20% which was a 53k down payment so there is some equity in the house. Other assets include 401k and roth IRA and paid off car.

My 2012 nissan maxima is paid off so i have no car payment, my mortage is $1800 a month, and I make 53k a year. I guess my question is am i even eligble for chapter 7 ( I live in texas) and should I just burn the credit card companies since I already have my house and my car.. any thoughts or sugestions would be awesome!

current debts:

Navy fed -15k

navy fed- 12k

securitry service-14k

amazon store card- $4,500

BoA- 2k

Citi- $1,500

City- $700

Discov-$700

loan-

Rocket loans- 9k

Thanks in advance!

Re: debating on Chapter 7...

Jnbmom — Tue, 02 Jul 2019 20:58:05 GMT

Are you current on your credit cards? Or are you behind with them and if so how late?

Besides your mortgage payment , what are your monthly expenses, how much are you paying out each month total to credit cards?

Re: debating on Chapter 7...

Shooting-For-800 — Tue, 02 Jul 2019 21:21:58 GMT

How about a HELOC and paying off your cards?

Re: debating on Chapter 7...

Anonymous — Wed, 03 Jul 2019 15:09:10 GMT

@Jnbmom wrote:
Are you current on your credit cards? Or are you behind with them and if so how late?

Besides your mortgage payment , what are your monthly expenses, how much are you paying out each month total to credit cards?

yeah im current on all my cards.

Monthly expenses are about $1000 all credit card minimums and $500 for loan payments. $175 for cable, internet, netflix. $136 car insurace, $200 utilities, $32 gym. So roughly about $2k not including mortage. (I do have a gf that gives me 1k a month for bills too.)

Re: debating on Chapter 7...

Anonymous — Wed, 03 Jul 2019 15:09:31 GMT

@Shooting-For-800 wrote:
How about a HELOC and paying off your cards?

ive thought about that.. that was the next option I wanted to throw out there.. I bought the house last september so im not sure how much equity I would be able to use... i know i have to leave at least 20% in there I believe. Not totaly certain for the HELOC..

Re: debating on Chapter 7...

mysterythemoon — Tue, 02 Jul 2019 22:10:20 GMT

I'm scheduled to meet with a lawyer early next week (couldn't get in sooner because of the holiday). Let's keep in touch. My consultation is free. I live in California, and that's very big in my decision. Certain states will make you liquidate more assets than others -- CA allows you to keep far more than other states.

Re: debating on Chapter 7...

Anonymous — Wed, 03 Jul 2019 02:40:02 GMT

nice! yeah forsure we will stay in touch. i need all the help and advice I can get right now!

@mysterythemoon wrote:
I'm scheduled to meet with a lawyer early next week (couldn't get in sooner because of the holiday). Let's keep in touch. My consultation is free. I live in California, and that's very big in my decision. Certain states will make you liquidate more assets than others -- CA allows you to keep far more than other states.

Re: debating on Chapter 7...

Anonymous — Wed, 03 Jul 2019 20:16:05 GMT

I was kinda thinking to consolidate most of debt to navy fed and pay off my disco, boa, citi. So i'll pretty much have all my cc debt at navy fed and security service . and maybe try and get them to cut the interest and lower the min payment. I really dont want to decare chapter 7 or 13.

Would trying to settle with navy work? anyone have any experiance with that?

what do yall think? Any advice? Im all ears...

Re: debating on Chapter 7...

Anonymous — Wed, 03 Jul 2019 21:46:43 GMT

@Anonymous wrote:
 
I was kinda thinking to consolidate most of debt to navy fed and pay off my disco, boa, citi. So i'll pretty much have all my cc debt at navy fed and security service . and maybe try and get them to cut the interest and lower the min payment. I really dont want to decare chapter 7 or 13.

Would trying to settle with navy work? anyone have any experiance with that?

what do yall think? Any advice? Im all ears...

64K debt is larger than your annual gross income. It would take years after years to pay them off. 7 or 13 is probably the only way to get you out of under the load. If you can exempt the house and your car you would be on your way to recovery by filing chapter 7. 53K income is probably within the "Means Test" in Texas, however you do not want to lose your house and car. Ask your lawyer about it to make the best decision.

Re: debating on Chapter 7...

Anonymous — Thu, 04 Jul 2019 02:41:03 GMT

@Anonymous wrote:
@Anonymous wrote:
 
I was kinda thinking to consolidate most of debt to navy fed and pay off my disco, boa, citi. So i'll pretty much have all my cc debt at navy fed and security service . and maybe try and get them to cut the interest and lower the min payment. I really dont want to decare chapter 7 or 13.

Would trying to settle with navy work? anyone have any experiance with that?

what do yall think? Any advice? Im all ears...
64K debt is larger than your annual gross income. It would take years after years to pay them off. 7 or 13 is probably the only way to get you out of under the load. If you can exempt the house and your car you would be on your way to recovery by filing chapter 7. 53K income is probably within the "Means Test" in Texas, however you do not want to lose your house and car. Ask your lawyer about it to make the best decision.

yeah i got myself in a heap of debt.. Funny thing is last november I was debt free after I bought my house. I cant believe im in this mess. I feel so helpless right now.

Re: debating on Chapter 7...

MyDataMyChoice — Thu, 04 Jul 2019 16:10:45 GMT

you could get a lending club or something of the like... i would NEVER take unsecured debt and pay it using a secured debt like a HELOC yes the rate is lower... but if you don't pay that now you loose your house.

Re: debating on Chapter 7...

Anonymous — Thu, 04 Jul 2019 17:59:06 GMT

@MyDataMyChoice wrote:
you could get a lending club or something of the like... i would NEVER take unsecured debt and pay it using a secured debt like a HELOC yes the rate is lower... but if you don't pay that now you loose your house.

won't qualify for lending club...

Re: debating on Chapter 7...

Anonymous — Fri, 05 Jul 2019 20:31:25 GMT

I mean I live in Texas and own a home ..And i read this,

"Texas has some very consumer friendly provisions that make it very difficult for creditors to collect any judgments they are awarded. The national Fair Debt Collection Practices Act (FDCPA) offers one layer of protection against aggressive debt collectors. But we have additional laws here as well. This makes collection laws in Texas very strict. Most states afford creditors ample tools to collect their debts, such as wage garnishment. This pushes most people to declaring bankruptcy in order to protect their wages. But Texas judgment collection is very regulated, and so declaring bankruptcy in Texas is often not necessary."

So my question is should I just stop paying Navy Federal and wait and try to settle, and if they don't I'll tell them I live in Texas so Good Luck trying to get a dime outa me. They can't take my house, or my retirement, or garnish my wages. I suppose they can try and sue me and place a worthless lien on my exempt homestead but that seems like its a waste of money for them.

I'll still have all my other credit cards in good standing and wont have to file Chapter 7. let me know what you guys think....

Re: debating on Chapter 7...

Jnbmom — Fri, 05 Jul 2019 20:39:18 GMT

If you default on navy, you scores will plummet your other creditors will take notice and AA will soon follow. Then your rates will rise your lines will be cut and suddenly your debts will rise.

If you can pay your other bills, then I would rework your budget , get a part time job and snowball the heck out of your debts.

Re: debating on Chapter 7...

Anonymous — Fri, 05 Jul 2019 21:06:02 GMT

@Jnbmom wrote:
If you default on navy, you scores will plummet your other creditors will take notice and AA will soon follow. Then your rates will rise your lines will be cut and suddenly your debts will rise.

If you can pay your other bills, then I would rework your budget , get a part time job and snowball the heck out of your debts.

What do you mean AA will soon follow? No time for a parttime job. I started studying for CPA exam. i mean will navy federal work with me and put me on lower rate lower min payment program?

Re: debating on Chapter 7...

Jnbmom — Fri, 05 Jul 2019 21:10:21 GMT

@Anonymous wrote:
@Jnbmom wrote:
If you default on navy, you scores will plummet your other creditors will take notice and AA will soon follow. Then your rates will rise your lines will be cut and suddenly your debts will rise.

If you can pay your other bills, then I would rework your budget , get a part time job and snowball the heck out of your debts.
What do you mean AA will soon follow? No time for a parttime job. I started studying for CPA exam. i mean will navy federal work with me and put me on lower rate lower min payment program?

AA- adverse action

Re: debating on Chapter 7...

Anonymous — Sun, 07 Jul 2019 02:24:54 GMT

Just so your aware- bad credit is a liability in finance jobs.

I'm finishing up an accounting degree right now and having a heck of a time finding a job. The interview goes well, but, I lose out on the position when they do the credit check. Hopefully you like the place you are at now. It would probably be better to file for bankruptcy while everything is in good standing- BUT, hopefully you have a good reason for all that debt in under a year. My trustee meeting was very interesting, several people who ran up a lot of vacations and other unnecessaries before hand. The bankruptcy is bad enough- but, I opted to file before anything was late. I've been discharged for a little over 4 months now and my scores are EQ 642, TU 604, EX 641. That was with nothing bad besides the bankruptcy.

Re: debating on Chapter 7...

Anonymous — Mon, 08 Jul 2019 16:58:41 GMT

@Anonymous wrote:
Just so your aware- bad credit is a liability in finance jobs.

I'm finishing up an accounting degree right now and having a heck of a time finding a job. The interview goes well, but, I lose out on the position when they do the credit check. Hopefully you like the place you are at now. It would probably be better to file for bankruptcy while everything is in good standing- BUT, hopefully you have a good reason for all that debt in under a year. My trustee meeting was very interesting, several people who ran up a lot of vacations and other unnecessaries before hand. The bankruptcy is bad enough- but, I opted to file before anything was late. I've been discharged for a little over 4 months now and my scores are EQ 642, TU 604, EX 641. That was with nothing bad besides the bankruptcy.

Well I work as as auditor for my dad's cpa firm.. I'm going to try for my CPA so I wouldnt want bankruptcy to be a burden on my career. I really dont have a good reason for running up the unsecured debt, it just snowballed. Maybe navy federal will work with me and cut my paytments in half or something. I really dont want to file Bk as that would be embarrasing and as you said would affect my career.

Re: debating on Chapter 7...

Anonymous — Wed, 10 Jul 2019 21:44:11 GMT

So concensous is I should just suck it up and continue to pay high interest navy fed cards? seems to me there is a better plan of attack.

I just need some guidance. thanks

Re: debating on Chapter 7...

MyDataMyChoice — Sun, 14 Jul 2019 04:31:30 GMT

did you try lending club lending tree prosper etc...

NFCU may be able to give you a hardship program. i.e. synchrony does 5 years interest free and it doesnt affect credit... just gotta be 1 day late and have a reason... i.e loss of income... more than 12 months...