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My story I NEED INSIGHT.

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ihatemyscore
Frequent Contributor

My story I NEED INSIGHT.

Hey guys/gals.

 

I am 22 years old and a college student. I am considering bankrupcy because I absolutely have no option! I make 1800 a month before taxes thats 1300 after taxes a month. 

 

I have a car payment that was opened in dec 2011 I need a car to get to school $335 a month. I was kicked out of my girlfriends house in Jan. I am at a hotel now and I have gotten a student loan from my school to help me to get on track to get an apartment with a friend anyways.. 

 

These are my bills 

$113 Auto insurance 

$80 Cell Phone (need for work)

$335 Car note

 

My Debt

$6000 In medical bills from one hospital

$8000 in medical bills from another

$13000 for the car

 

I have two setteled credit cards and one payed off auto loan for $8000 on my report.

Also, I was in a auto accident last april and i am now being sued by Farmers Insurance because my insurance only payed 10000 to the other people and there car had 15k in damages. So they sent me a letter to contact and pay within 10 days or they will seek judgement via court.

 

I still have a 300 dollar secured credit card on my credit report never late once with a balance of 23 dollars and 3000 dollars in student loans.

I want those to stay there. 

 

So in total i am $32,000 in debt and I still need to be able to survive and live and goto college.

 

I need help !!! I am so desperate I want to start over again so bad. but I do not want to lose my car. I rather do this young then to suffer later.

 

I also have things in collections that are not on my credit report yet. What should i do!

 

Whats my options

 

BK: 7 filed 3/31/12 - Discharged 6/27/12
Made some poor choices and life snowballed
BK: 13 filed 7/29/16 - on a 36th month time out
No CC - No Loans - Student Loans all current.
Message 1 of 15
14 REPLIES 14
ihatemyscore
Frequent Contributor

Re: My story I NEED INSIGHT.

Also what about debts i may have that are not on my credit report say a cell phone bill i recently stopped paying because i have no money?

BK: 7 filed 3/31/12 - Discharged 6/27/12
Made some poor choices and life snowballed
BK: 13 filed 7/29/16 - on a 36th month time out
No CC - No Loans - Student Loans all current.
Message 2 of 15
Panheadmike54
Member

Re: My story I NEED INSIGHT.

Call your insurance company on the car, seems odd that they only paid them for 2/3 of their damage, had my share and my insurance always covered them.

 

The medical bills you can work out with them. I had some that agreed on 50 a month and reported me well to the cb's.

 

Doesnt look to me like you have an unsurmoutable mountain there, with the car thing i would get aggressive on that and wait to see the end result before filing

Message 3 of 15
Anonymous
Not applicable

Re: My story I NEED INSIGHT.

Good points.

 

And reconsider your ride.  Needing a car for school and choosing a $335 per month vehicle are two unrelated options. Are you able to drive something less expensive?   And watch the insurance cost on whatever you're driving - it's always an issue for young male drivers.  That may seem obvious, but it's taking a huge chunk out of your monthly income.

 

If your medical bills are unmanageable, you may find it best to file BK.  But you'll also need to rethink your budget and your priorities in paying the other monthly expenses you're incurring.  

Message 4 of 15
Panheadmike54
Member

Re: My story I NEED INSIGHT.

Thanks! I'm finding much less stressful than i thought i would.

 

To the original poster, looking back on my situation my main mistake was burying my head and not communicating. Had i acted promptly and correctly i could have avoided my BR. First course of action is to communicate your issues to the lenders, especially the medical as they will work with you. The car issue makes no sense, if you had insurance they insurance company should have been liable for the entire amount of their repairs.

 

Also as previously stated rethink your car, your in college its all about survival at this point. You said you had to get money for an apartment, how about a dorm and no car. Not sure where you live but if the weathers tollerable scooters are cheap and require no insurance. What about selling your car? can you and get close to the amount you owe?  your looking at a 500 a month savings there.

 

Most of the things you have seem workable and getting setup with the collections and making payments in return for favorable reporting could get you back on track quickly, maybe you can renegotiate your car loan interest? I see a ton of maves you can make before the final solution.

Message 5 of 15
ihatemyscore
Frequent Contributor

Re: My story I NEED INSIGHT.

I want to thank you both for replying. I am going to retain the vehicle for as long as possible I just retained a lawyer and we calculated my debt to be a total of 65,000 dollars and it's all unmanagable he contacted the lawyer that was trying to sue me for the accident and sent him a cease and desist and if he contacts me my lawyer will sue without hesitation.

 

He has also contacted all creditors and collectors and let them now I am filing chapter 7. The total fee was 1200 with a fee waiver because of considerable debt and low income. So I don't have to pay the 300 semi dollars for the bankruptcy filing fee.

 

I am going to goahead and give the vehicle back soon my lawyer will advise me on this issue. Other than that I am protected and he said if anybody calls me or contacts me forward them to him. He is a great guy and I am glad I am on my way to a fresh start.

 

My advice to young adults like my self is to be careful with your credit and debt. I am happy I did this because I can repair myself within two years.

 

 

BK: 7 filed 3/31/12 - Discharged 6/27/12
Made some poor choices and life snowballed
BK: 13 filed 7/29/16 - on a 36th month time out
No CC - No Loans - Student Loans all current.
Message 6 of 15
Anonymous
Not applicable

Re: My story I NEED INSIGHT.

You could file bankruptcy and reaffirm the debt on the car. Even if you don't reaffirm it, as long as you stay current on the payments, they won't bother you. I worked as a collections manager for 7 years for one of the big three and I've handled lots of bankruptcy accounts. They don't want the car, they want the money. If you don't reaffirm, you must stay current on the payments. If you reaffirm, the debt won't be counted under your bankruptcy. Your choice. Good Luck!

Message 7 of 15
SoulMaster
Established Contributor

Re: My story I NEED INSIGHT.

Your student loans won't go away with the BK and you may find that they add a $10K fee to them because you filed BK.  (Search these boards, it seems to happen all the time).

 

Your secured card WILL go away, however.  All debts and creditors must be included in a BK and notified.

 

Can you post the new math here on how you got to $65K?  If you dump the car and settle the rest, it doesn't seem that insurmountable on your salary (especially if you consider settlements of the debts).

 

Before you file BK (which should be avoided at ALL COSTS), you might want to pick up Total Money Makeover by Dave Ramsey, it helps and has a great CH on BK.

 

Here's your worst case (and seemingly inevitable scenario, as it happens all the time):

 

  1. You file the BK now when you might not need to
  2. You get injured or otherwise and rack up $100,000K+ in medical debt in the next 2-4 years
  3. They start garnishing you because you CAN'T file BK again for another 6-4 years.
  4. Then you're really sunk.

 

Remember, a BK attorney's job is to SELL you the BK.  Don't get "sold", there is usually another way and in your case it seems very likely that there is another way.

 

Looking forward to seeing your debt breakdown.  And remember, until the docs get to the courts, it's not too late to change your mind.

 

-SM

I am not an attorney and none of what I write should be construed as legal advice. For legal advice please consult an attorney.

Starting Score: ~470 preBK(8/2010)
Current Scores as of Late January 2016 All 700+. Last CR pull from a lender(housing) was mid-score 749.
Goal Score: 700+ - reached.
Message 8 of 15
kjm79
Valued Contributor

Re: My story I NEED INSIGHT.


@Panheadmike54 wrote:

Call your insurance company on the car, seems odd that they only paid them for 2/3 of their damage, had my share and my insurance always covered them.

 

 


Very possible depending on the policy limits of OP's inurance policy.  But if if OP did have higher limits and that's all the ins co offered to settle for then OP has a bad faith claim against the ins co. for exposing him to additional lawsuits.  Also, if the driver(s) of the other vehicle did accept settlement from the OP's ins co., getting a copy of that settlement release is crucial.  Ins co's are good at drafting those releases and often times the claimant is barred from pursuing additional damages.  Either way, a call to OP's ins co needs to be made.  Part of insurance premiums includes legal representation.  Hopefully it's not a shotty ins co.  Your attorney sending them a letter to cease and desist means nothing if they are in fact entitled to additional damages.  You have not filed yet and are not under any kind of bk stay protection.

 

As for the other advice on the Bk, it may seem tough, but IF there is anyway to avoid it, then avoid it.  It's a whole lot of work to come back from BK, sometimes it's easier to put the work in up front and not file bk.  But do what you need to do to get through, either way.  Good luck to you. 


CH 7 Filed 7/27/15 Discharged 11/16/15
Starting Score: EQ 620 TU 568 EX 593
Current Score (07/13/16): EQ 674 TU 649 EX 674 (FICO's 08)
Cap1 QS ($5350) (Combined QS and QS1) Discover It ($4100) MilStar ($8,600) Fingerhut ($800)
Off to the garden 05/01/16
Message 9 of 15
drkaje
Senior Contributor

Re: My story I NEED INSIGHT.

Will obtaining the loans to finish school be possible with a fresh BK?


Starting Score: 675
Current Score: EX 753 FICO, EQ 737FICO, TU 738
Goal Score: 776 FICO


Take the FICO Fitness Challenge
Message 10 of 15
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