@kebeneezer88 wrote:
Hi, just wondering how most people decided it was time to declare Chap 7? I know all situations are different, just needing some feedback.
I have been rebuilding myself last year. Scores are approx 585 to 630, with about 25 inquiries (10 are recent auto loan apps). I have done the usual suspects, Fingerhut, Express, all the SCT Comenity cards, Open Sky, Credit One, First Premiere, got approved for secured Cap 1 but haven't done deposit yet.
My issues are I cannot get an apartment or car loan due to a NYS income tax lien for $2200 and an apartment/property management lien for $8K. It is not an eviction, I lost job in 2013 and moved out after I knew there was no way I could pay rent. So not officially evicted, but they stuck me for twice the amount of rent I actually owed, court costs, etc.
I also had to do a title loan on my car, unfortunately, about a year ago for $900 that I absolutely had to have. I paid it for a year, moved out of state, but they found me six months later and now I have no car. I am wondering if that will somehow end up with a collection agency and will add to my woes. They said I owed $2200 to pay off but I know that will be jacked up as well.
I make $63K. I am living in an extended stay hotel unfortunately paying $1900 per month. I am just wondering if I need to give up and start over or will that make it worse. I really need a car and to get an apartment. I tried all the bad credit auto financing and only one place would work with me, I think it might have been a scam, and payments would have been $350 per month for a car I didn't really want.
This is just my opinion only, based on what you posted.
It looks like, with your income and current debt, that you would be able to work out this debt in fairly short order without filing Bk.
If you work out a payment arrangement for the judgment and the tax lien, it will be much easier to rent a place.
In fact, it is easier to rent from a private individual rather than renting from an apartment complex anyway when you have credit issues. I have found (I'm a Realtor) you can overcome rent reluctance with more money up front. In my area first, last and security deposit are typically required to rent a condo/townhome or single family home. Those with severe dings (and a judgment for unpaid rent is considered severe) put up another month or two (second month rent or so) to overcome that issue. Some put up 6 months of rent. It is all negotiable.
As to getting a vehicle, consider a cheap cash car for now until you find a place to live reasonably and get some payments under your belt. It is very possible that the car you had repo'ed or the title loan people will go after you for a judgment. I don't know anything about title loans. Is there a description of their remedies in the contract you signed when you took out the loan?
