File For Bankruptcy?

Welcome....

Please consult a bankruptcy attorney for a consulation (most are free consultations). With the new laws, you will need to have your info placed into the "means test" for your applicable state, county to evaluate your sitation as a bankruptcy candidate.

Do you think I'd be able to keep my car? I have paid $6,000 on my car and owe $9,500 on it now - if I don't have a car, I don't have a job....this whole situation makes me want to cry!!

Yes, if you file CH7 most car loans and secured debt will be allowed to reaffirm. Which means, you payments stay the same, etc.

Do you suggest any lawyers in the Columbus area that would be good to meet with and maybe get this started?

honestly, I dont live in your area I believe :D

However, and this sounds silly, but take a look at the yellow pages as most will advertise a free consulation.

Before you commit to any attorney, look them up in the Better Business Bureau as well. And you can check them out with your state Bar association to make sure they are in good standing.

There is no way in hell I would file bankruptcy on 12k. Are you sure you are getting summons. I can't imagine a CC wasting their time suing someone that makes $8/hour and has no assets. Are you sure it wasn't something that was made to look like a summons but it really was just a letter trying to get you to call the collection agency? It has to be hard to rent an apartment, pay utilities and a car payment on what you make. I really doubt a judge would grant a garnishment on your wages at that rate if it ever made it that far. If you dont mind could you tell us how many cards you have and how much you owe each. I am guessing you have 6 cards at 2k each and I really doubt any of them would sue for that. If you had just one card with 12K on it then they might consider it but I think once they verified your income they would back off.

Your problem in my opinion is cash flow. Bankruptcy will not solve that. I think you have to many bills for the pay you make. I would suggest you work more hours than 30 and try to advance your career to up your hourly pay.

This is cleary a case of the credit card companies being idiots and giving credit to someone they knew damn well would have a hard time paying it back.

I actually thought it was a debt collector, but I logged onto the Franklin County Court site, and there sure enough is a file that is stated as "open" with Capital One vs. Me....no date has been set yet.

I currently have 2 credit cards:
Capital One $3,500
Chase: $9,000

If you think that they will back off, how do I go about getting them to back off....is it better to call them and simply say "I make $700 a month...I would love to work with you, but can't afford it now"??

I would love to work more hours, but I'm a manager at a golf course...it's getting close to the end of the season....it gets dark before 8pm...I'm trying to work as much as possible...I should be getting 35 hours a week shortly as it will only be myself and my manager working year round...it's only through March that things are going to be tough....but there's not a lot that I can do about it - I went from $5/hr to $8/hr....

I'm just lost, I'm stuck in a hole and I have no clue how to get out :(

erin - you have to consider several things when considering bankruptcy.

-Since you have a job, the means test will most likely end up placing you in a Chapter 13, which means you will end up paying back the debt by means of a payment to the Bankruptcy Trustee (most likely taken directly out of your check), leaving you with very little to live on afterwards.

-Bankrutpcy is not a cheap option, no matter which way you look at it. Chapter 7 will elminate your debts, but you will also have to allow the Trustee to sell your assets to repay your debts prior to discharging the remainder of your debts. (This is subject to varying exemptions in every state.) This means your car, home, etc. may be up for grabs.

-Chapter 13 attorney's fees are VERY expensive. Much more so than Chapter 7. You can count on the first 6-8 months of your payment plan doing nothing but paying the attorney's fees, and NONE of your debt will be repaid during that time. None of it. Only when the attorney's fees are paid in full will the Trustee start disbursing payments to your creditors. This plan will last 3-5 years.

It figures that the low one is suing you. Maybe they are trying to get a judgment in hopes that they can collect later on. Have you been served papers that you need to answer about the lawsuit? I would probably answer it with what you just said. I do not think you would get anywhere if you call the collector and tell them you do not have enough money. I suspect they would just belittle you and try to strong-arm you into paying. You might be able to call the law firm and tell them that but they will request payments too probably. The thing about it is a judgment is not going to do them any good at least right now I don????????t think. Your entire monthly income goes to bills and a judge is probably not going to grant a garnishment and risk default on your rent and car payment. I think I would prefer to have a $3,500 judgment on my credit over a bankruptcy though although a bankruptcy will drop off your credit faster.

This might sound harsh but this is exactly what I did and what I would tell my little sister to do. Its hard out there on your own. My suggestion would be pick up a second job and try to scrape up $1,000 or so and offer it as settlement in full. I would also move down in cars. I know it is very difficult to give up a car but you are spending 42% of your monthly salary on a car which is not good. Also the value of the car is higher than one year take home pay for you which is also not good. It is also a bad idea to have half your annual income tied up in an item that loses value every year. Again I know it is very difficult to give up a car and God knows I love my cars.

The biggest problem I see is you were relying on the credit cards to pick up the slack on your tight budget I think. The bottom line is it is hard to live on $8/hour especially if you are supporting others. If you made $12/hr it would bring you an extra $12,000/year assuming 40 hour weeks which is what you had on your credit cards.

I honestly can not figure out how you budget everything.
Rent=300
Car=300
Ins=100 at least

That????????s 700 and we have not covered food or utilities.

Ill check post shortly got to go for now.

dollarsandsince...you made an excellent point there about the budget.

My daughter and her boyfriend just arrived today from out of state for a brief visit. They both work at a fast food place, making just slightly over minimum wage. Due to the fact that both of them are working, they don't qualify for any sort of low income housing - they've been told they just barely exceed the income limits - go figure. But because of the small income they both have, they can't afford to get a regular apartment. They have a small car loan they are almost done paying off, but other than that, really no debt. But they still struggle week to week.

They are considering moving back up here and living with me for a couple of years to get on their feet.

Its tough getting by on minimum wage even with two workers. That was another suggestion I was going to make but did not have time about moving in with a parent or relative and not pay rent or pay minimal rent.

according to his income and bills, he would probably qualify for chapter 7. that will eliminate the credit card bills but not the car. i have filed for chapter 7 and it was a relief and believe it or not after i filed and it was discharged (in about 2 months) i started getting mail for second chance loans on cars and money plus credit card companies was after me.

I would consult a paralegal also. I am filing a chapter 7 and she is preparing all of the paperwork for a fee of 200.00.. I have to pay the filing fee but the court will allow to set up a payment plan of 50.00 until the 299.00 filing dee is paid.

I have 2 homes, and 20k in debt.. I just lost my job twice within the last year.. I am in the mortgage business and have been laid off due to the subprime woes..

Granny-They know you cant file again for another 7 years :lol:

Actually, they could file a different chapter after only 5 years. Maybe some of these places don't realize that! They just couldn't file the same chapter for 7 years. I filed chapter 7 in 2002 and was able to file chapter 13 this year. :) I can hardly believe this but we have a 5 year chapter 13 plan that we JUST started and my husband and I are getting bombarded with credit card offers already!

Can u imagine all the money these companies spend on junk mail?? Maybe if they'd stop they could lower the interest rates!! :shock:
And also, just cuz they send u a ton of offers doesn't mean they'll approve them! Which makes NO sense to me at all! U've been pre-approved but then declined... WTH???
Ang

Sass-Ahhh....didnt know you could file another chapter in 5 years of filing ch 7...that is new info for me. Thank you!!

I didn't know that either until I had no other choice! Thank goodness I was able to..it's the only thing that saved my butt besides this forum! Besides medical bills, I was not very smart and as soon as I could after my chapter 7 was discharged, I accepted 4 credit card offers and got myself in over my head with them, even though they were all under $1000 credit limits. And check this out, not that I am planning on doing this, but if I wanted to, in 2009 when my 7 years is up, I could convert my chapter 13 to a chapter 7!!!

sass..do you mind if I ask if you filed before or after the new laws..?

My chapter 7 was before, and my chapter 13 was after. We just filed chapter 13 in May. Our "plan" was just confirmed in August.

Sass - welcome to the wonderful world of Ch. 13.
;-) :-( (mixed emotions about that, can you tell?)

My Ch. 13 is being converted to a Ch. 7 shortly. I have one of those "bad" mortgages you hear about in the news lately. Every shady, dishonest thing that could have been done during the application process on my mortgage was done (by the mtg broker and homeowner, who was also a real estate agent and also worked for the broker). The government program that is in the works to help homeowners like myself who got hammered when they bought a home with an ARM and got screwed over by the mortgage broker, etc, won't help since I already filed Ch. 13 to keep the house...so now I'm surrendering the house in order to get out from under an ARM that starts adjusting in March (from 9.595 to a possible max of 15.595 over the course of a few years). I've spoken to attorneys, mortgage lenders, etc...they're all advising me to get out and get out now, before this thing eats me alive. So once the surrender of the house goes through and the sherriff's sale is held on the house, I will convert to a Ch. 7 to prevent me from being responsible for any balance due on the house if it doesn't sell for what is owed on it. Which it probably won't.

Which mortgage company gave you that loan Sue?

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Well, I just called Chase & Capital One - they both said they are willing to settle if they have the money now...which I don't have :( Chase was looking for a $500 down payment as an intent to pay...and make monthly payments...but the only thing is...I don't have even $100! I'll be lucky to get my rent paid this month! I've tried friends and family - no one can help! The closest relative I have is 100 miles away - therefore if I moved, I would have to quit my job. If I quit my job to move, and then try to find another, again I will be without income! I'm doing a little promotional modeling on the side...which usually pays about $20/hr (but only lasts for 3-4 hours an event)..but at least it's money! I really think I have no other option but to seek legal help for chapter 7 :(