I called some credit counseling, but I am on unemployment and that only covers my sent with $200 spare. Hardly enough to live off.

Plus my gf is 18 and thinks money grows on trees.

 

As hard as this sounds...sell your car, pay off your debts , get back on your feet and get yourself a new S when your in better financial shape .

Sorry, to be the bearer of bad news, but you will be better off in the long run and you won't have to claim bankrutpcy.

 

Something to consider...not all bankruptcies result from poor fiscal planning. It has been reported that as much as 25% result from catastrophic medical bills from those with limited health insurance. I was in the hospital for two weeks while in between jobs several years ago and had it not been for a loophole in my previous employer's health package, I would of been personally responsible for the $66,500 bill, especially agitating since they were charging me $56 for a dinner which consisted of green jello. Other thoughts...do NOT file a BK based on a repayment plan as it does your credit rating no less good than a full blown chapter 7. Also, FWIW, most organizations have credit insurance against bankruptcies which in of itself, is a business all its own so the entire BK industry feeds off itself. Strange huh? I know friends that filed and two months later had credit cards with $5K limits....the stigma of it isn't what it used to be (not an endorsement) but it really doesn't take long to recover from it simply because HAVING little or no credit should provide a firm learning ground to respect it WHEN you eventually get some back. It is not a "without remorse" answer, as my brother filed and it's been a tough road since then, but at your age, you have plenty of time to recover. The question is...if you file, do you have the ability to learn from this? Some file to escape their debts and refile seven years down the road. Others file because by NOT doing so, the choice is "on the street."

 

I would advise against it. If you call your creditors and tell them your situation then more than likely they will be understanding. I've had to contact the IRS lately and even they were cool, Knocked my tax payment from $1K/mo to $250/mo no problems just a thanks for letting us know. What creditors hate is peeps that try to weasle out of paying, don't return phone calls and generally don't tell them WTF is going on. That what the agencies do. It wont effect your credit and in fact will probably get you a higher line of credit once you pay it off.

There are situations where it's necessary but until you've talked to them all and said "hey, here's the situation" then you shouldn't think about it. You will lose everything you own and fug yourself for many years to come. Burn the credit cards, sell the car and other assets you have. Get rid of the payments, that's the key. There are tons of ways to reduce the monthly load. Bankruptcy sounds easy but it will haunt you forever and you can't undo it. You aren't a business, you can't just start a new one.

 

you always want to try every option before filing... it has to be your last resort to file.

 

If a large part of it is from credit cards, you can try to consolidate them into those with 0% interest rate and just keep switching when the trial period runs out. It takes some work but it may help somewhat.

 

I've tried that. Still doing that. I have medical bill from here to hell. Somewhere between 3-5K. I had my home phone turned off a long time ago. All my credit card bills have been paid on time and usually $100 over the minimum required payment.

I have been trying to avoid bankruptcy for the longest time, but not being paid for 6 months really hurt. If I could get the 40K that I am owed from working at the last company, I'd be in better shape. I was on the up and up, but not exactly where I wanna be now. I had pictured myself in a much better place when I turn 30 next year.

Oh wells!

Thanks guys for all the support.

 

If I might be so bold, what is your total debt? $5K in medical bills and what else? Your credit cards are current so that's not an issue. What is it that is pushing you to this point? I mean $5K is dick, even $25K is nothing. If you aren't on the hook for $250K or more then I don't see the panic. I know it's personal but you've already said you are looking file which is about as personal as you can get financially. It's hard to offer any substantive advice without knowing the scope of the problem.

Best of luck.

 

[QUOTE]Originally posted by cthree
[B]If you aren't on the hook for $250K or more then I don't see the panic.