question about Chapter 7

[kilroy8]

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@shadanat wrote:

So it sounds like you are struggling to pay everything. I would talk to a bankruptcy lawyer so he/she can explain your options. Consultations should be free.

From what I see unless you get an influx of money soon, you are going to fall deeper and deeper in debt. You mentioned that one of the vehicles is three months behind so repossesion is probably eminent. And it looks like every card is past due.

If bankruptcy is the route that you are choosing, I would say do it sooner than later. Note that bankruptcy will not get rid of your student loans but it will free you from the other debt.

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They will only be shedding a little over $5K in credit cards plus whatever they are underwater on the cars, if they have everything listed here.  They have a good income.   Just seems like it is not that much to me. There is a lot going on in that person's life it seems, and it would be awful if a bad decision is made here and made things worse.

[Anonymous]

So maybe I just let them repo the one vehicle. And try to catch up with the rest? Repo is better than bankruptcy right? This all just sucks. I will never make this mistake again. Thanks for all of your help!

[shadanat]

They both hurt your credit but in my opinion it’s easier to rebuild after bankruptcy. If they repo the car you would still be responsible for the deficiency balance. So say you owe 15000 and the car sells for 10000 you would still owe 5,000. The lender can then get a judgement and that could open you up for wage garnishment. With bankruptcy, you give the car back and then you are done with it.

This is why you should at least do a consultation with a lawyer so they can explain everything.

Read through the bankruptcy forum and see what many people have been through. Me personally, I chose bankruptcy and though I was embarrassed at first I realized that it was the best thing for me. I was discharged in September of this year and I started rebuilding. My scores are low 600s but I was able to obtain a credit card and car loan. It also forced me to realize that budgeting my spending was the key to never end up in this position again. I no longer impulse buy. And if I don’t have the cash for it’s not for me right now.

We have all been in your shoes and you have to do what you feel is best for you.

[Kb109]

Definitely speak to some good bankruptcy attorneys in your area! Most offer free consultations so visit several and tell them your whole situation. Avvo is a great website to find lawyers and you can read reviews too! Best of luck to you!!