Advice please on filing BK

[Anonymous]

Hi everyone,

I am so grateful to have found this form, been reading a lot about your past experiences with BK. Currently, I am in the process of finding attorneys to file for me because I have come to the conclusion that there is no way for me to overcome my debt. I have a lot of charge offs and late payments (collections are still reporting 2 of my old capital one cards), and a repo from Toyota 2016. Currently have a 2013 Ford Fusion at 22 percent interest rate/ payment at 380. I have been current on it but the payment is killing my budget and I am not sure if I should include it in the bk. If I give up the car, I plan on driving one of my moms cars for a year and hopefully can rebuild my credit. Would really appreciate any suggestions. I pray capital one will let me back in.

Best,

Tiff

[tooleman694]

What does your income look like.

[Shooting-For-800]

Are you upside down on the Fusion?

What is your income?

What is your total unsecured debt?

What is your monthly bill total?

BK is not a joke.  It can really be tough but it can also turn your life around.

Variables matter a lot.

After BK, you can probably get a car with a better rate than 22%.

[Anonymous]

I worked really hard to improve my credit through November 2015 and April 2017 so I could buy a house. I was so proud of myself and I started getting "higher" limits for the first time in my life (I had never had ovee $750 and I screwed up on those when I was younger - 29 when I bought my house). But then I rationalized it and charged them all up and I was drowning. I made last ditch efforts to pay my stuff down with my tax return then my car broke down and I couldn't get another one and had to spend 3k to fix it or be without one. I was out of options and finally came to terms with needing to file. Make no mistake: it isn't a decision to be taken a lightly and it has to be your absolute last option. Recovering will be difficult but if you can't catch up, starting over is the best thing you can do.

So yes. See some lawyers and they'll do means tests and tell you your options. Mine was pretty cut and dry. I was never late or behind on my mortgage and my debt was all credit card debt so he charged me $1500 for it (I live in Bay City, MI where stuff is usually less expensive anyway). $750 up front and then at least $100 a month until it's paid back. I have felt so, so, so much relief since I filed. Good luck!

[Anonymous]

Currently bringing in 2700 after taxes.

[Anonymous]

I am upside down around 6k on the car and bringing in about 2700 after taxes. Total unsecured debt is around 28k and monthly bills are:

Rent 600

utilities 200

phone 178

insurance 131

car 380

cr loan 88 per month almost paid off

180 towards judgement for loan me 

[Anonymous]

Glad to hear about your story, we’re you able,to finance another car? Ended up finding a lawyer today who said I qualified for ch7. Charging me 1800~ 300 for 6 months. Let him no I would need time to decide.

[Pharoe33]

I recently filed Chapter 7 and was discharged Monday.

I'll tell you that for the first time in years I finally feel financial relief and have a new sense of peace regarding not only the present but as well my future.

I contemplated filing Chapter 7 for roughly 3 years. In those three years I fought to pay down my debts all while fighting interest rates, life circumstances and times of unemployment. In the midst of all of this I realized I'd just been turning my wheels and going nowhere and if I didn't do something about it I would've continued turning my wheels for another 3 years without progression.

My advice to you is envision what you want and need for your future and ask yourself if your financial situation is truly in the way of achieving that vision. Truly ask yourself can you achieve your goals without filing BK. If you feel that you can not then definitly consider the option of filing. Take up the opportunities for free attorney consultation and talk to multiple lawyers. I went to 3 attorneys and they all told me I didn't qualify for Chapter 7. I gave up for a few months and found a 4th attorney who did his research and saw that I did indeed qualify.

If you decided to file, have your rebuild plan in tact prior to even filing. I researched this forum like I was studying for the MCAT and had my plan in tact before I filed. Doing so I saw my highest fico of high 400's before filing go up to high 600's after discharge all thanks to the great advice found here from members who walked the path before me.

[Shooting-For-800]

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@Anonymous wrote:

I am upside down around 6k on the car and bringing in about 2700 after taxes. Total unsecured debt is around 28k and monthly bills are:

Rent 600

utilities 200

phone 178

insurance 131

car 380

cr loan 88 per month almost paid off

180 towards judgement for loan me 

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How much are your minimum unsecured debt payment minimums per month?

Have you tried negotiating with your credit cards for lower interest and lower payments?

Have you tried negotiating lower payoff balances?

What are you currently behind on?

Are you married? 

Living with significant other?

Children?

You may not qualify for Chapter 7 and I would not do a Chapter 13 in your case from what I see so far.

If you are married or live with sig other, your total household income matters.

If you are single and do not really want to do BK, I would quit paying all your credit cards all together.  Save CASH. 

You can send form letters to stop the calls and 3-9 months from now they will be much more open to settling a lower balance.

If you are going to do a Chapter 7, get rid of the car for sure.  You are paying more than 22% because you are $6k upside also.

You can buy an older Civic or Corolla to get you by for $2500.

If you credit is not already ruined, it will be with a BK or with going late on credit cards, but the BK last longer.

Also, depending on your state, BK can take some of your property if you have anything of value.

You do not want a Chapter 13 in your case.

$26k of unsecured could become $10k that could be paid off at $500 per month for 24 months.

My point is, you can always do a BK later if negotiations fail.

I can tell you though, I paid off some cards for 20%-40% of original balances.  I had some other issues, so I had to file BK anyway, but it was over a year later.

Even if you get judgements (which you have plenty of time to deal with before court date), you can file BK after or before court date to stop them or just pay the ones that are seeking judgements.  90% of credit cards with balances under $10k each will never go to court.