With trash credit and my car being repo'd I am wondering if a chapter 7 is right for me
I live in Washington State and between two jobs I make about 45,000 a year before taxes However, here are my debts.
I owe 17,000 on a 2010 camry worth maybe 10k, it was also just repossed the payments were 450 a month with 16% interest
I owe 6000 on a personal line of credit, monthly payments 200
I have 2k in unsecured credit cards
I have 2 checking accounts that were charged off, at roughly 500 each.
I have a 9k in student loans. I know these wont be dismissed in a chapter 7
I have consulted with an attorney who thinks it might be right for me, I was just curious about other opinions or experiences.
That would depend on what your monthly living expenses are. Did the lawyer have you fill out what your monthly expenses are compared to your income? If there is enough left over each month they could make you file a Chapter 13. But if he/she recommended a Chapter 7, then you might think about going with that. My wife and I had to file a Chapter 13 and it was a tough period of time but in the end our debt was paid in full.
I did fil out my monthly expsenses and my lawyer did recomend a Chapter 7. I'm just worried, because I keep reading these anecdotes of people who made below their area median income and passed the means test, but had to convert to a Chapter 13 anyway. My situation I make $10,000 below my area median income and with my car being repoed , I probably could afford some kind of repayment plan, but that means I could never move from where I am now, and would be unable to afford another car. My car was previously costing my $700 a month between the loan payment and insurance.
Never is a pretty strong word. If you did go with the Chapter 7, once discharged you would basicly have a fresh start. Yes credit will be harder to come by but not impossible.
A lot of that depends on the Trustee too.. seems like it is objective with the test..in theory.. but you never know.. best of luck!!