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Thread: I don't know where to start

  1. #1
    Kaylinn
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    Default I don't know where to start

    I just don't know where to start or what to do concerning my debt/very bad credit. I kind of think bankruptcy is the best option for me, because I have soo much debt, I could never pay it off. I know there are new bankruptcy lasw, but I have to research and see how it applies to me. Any suggestions on what to do or where to start would be soo helpful. I don't want bad credit forever.

    Here my deal:
    I don't currently have a job, and I have NOTHING in my own name. meanign, if I were to file bankruptcy, they can't take anythign from me, cause I own nothing. Not even a car. I don't even have a bank account.

    I have 2 car reposessions on my credit. One I believe I can dispute, I had many many issies with the car, including that it was illegally inspected. The engine blew up one day( after just a few months of owning the car) and I was done. Fed up, I stupidly left the car on the road where it died and said go get it. I never heard from them again, and they never attempted to contact me concrning payment of the laon. I found out years later it was listed as a repo on my credit. I was up to date with the payments until I left it parked where it died. My understanding concernign repo's is that they do need to contact you and attempt to collectthe debt. I was never in contact with them. SO can I fight this one? Itwas from 4 years ago.

    I have another repo. Totally my fault, bought a car I couldn't afford and it got to behind and they took it. The car sold at auction for 5grand, they now want 19grand from me. Interest buiolt up over the years? This happened in 2000 or 2001. They keep updating my credit report tho, so I don't know that it will fall off in 7 years since the debt, because it keeps getting sold or somethign? it's always updated on my credit report, although I havent heard from them in years.

    Medical Bills. All with collection agencies
    I have well over 30grand in medical bills just adding up from over the years of not having insurance and not being able to pay them. 2 surgeries a few ER visits, and random other bills.

    Recently, I defaulted on my (only) credit card, the interestwent up to 35%and I couldnt pay it. I would make huge paymetns every motnh, but because of the high interest, it went over the balance anyway every month, adding huge fees and no matter what I paid, it was never lowering the balance, and always going over, charging more fees...eventually, I gave up. That acocunt is stil lopen and chargign me hell fees, but I gave up on trying to keep it up. I don't knwo what to do with that card, and I'm just ignoring them. Whatshoudl I do? Close the account and offer payment arrangments?

    I have a few other random collections that i coudl pay off, but I always figured, with so many other marks, what's payign off a few hundred gonna help?


    Only good things on my credit:
    My first car bought in 1999, I took out a loan, paid it on time and paid it off early.
    I also had a credit card that I couldn't pay for, so it was closed, but I made a settlement and paid it off. Unfortunatly, it's on my credit as charge off/account paid in full, so i think even though I paid t off, it's still hurting me.


    Yes...I have been very very irresponsible with my credit. Lack of medical insurance really screwed me as well.

    I just don't know where to start cleaning it up.
    I can't make payment arrangements with everyone. It would cost more than I could afford to pay, even after I secure a job. Plus..it would take 20 years to get it all paid off, and I was hopign I could get semi decent credit sooner than that. Or atleast be on the path to decent credit. My score right now is 435.

    Keep in mind..I don't strip anymore, and have no plans to do that again, so I won't have that kind of income. I'm tryign to obtain a waitressing job. I'm also a college student.


    Any suggestions would be very much appriciated. I'm makign a lot of positive changes in my life, tryign to get on the right path after years of mistakes...and with this..I just don't know where to start.

    Thanks so much Sorry for the rambling

  2. #2
    Banned Melonie's Avatar
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    Default Re: I don't know where to start

    file chapter 7 bankruptcy ASAP ... before they change the bankruptcy laws again ! As you say, you have nothing to lose either in terms of assets or credit rating.

  3. #3
    BrunetteGoddess
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    Default Re: I don't know where to start

    Yep, Chapter 7 seems like the next step. It's not fun, but since you don't own much, it won't be AS painful and you can start rebuilding credit again.

  4. #4
    Featured Member maximvsv's Avatar
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    Default Re: I don't know where to start

    You can get a bankruptcy kit from a local forms store, and generally use that. From what you wrote, you are probably eligible for CH7, if you want, since it sounds like you don't have too much disposible income to be pushed into CH13. You'd still have to go through the checklist.

    Now, as a possible alternative, you might consider calling the various creditors and asking to pay off each account for some minor amount, like $200 (if you have it). After all, if you go through CH7, the unsecured people (and they sound like they are all unsecured people) will not receive anything. You can make the way in which they report the resolution of the debt a part of the negotiation, too. That would cost some money and would still injure your credit rating, but slightly less than all of the accounts and the bankruptcy combined.

    The filing fee for a CH7, at least in the PA districts, is $274. It can be paid in installments.

    The procedural rules out here were recently amended so that a $1,500 fee is presumed fair for an attorney to charge in a CH7 representation, but any other fee can be negotiated, and a fee in excess of $1,500 would need approval from the Court and the Trustee.
    ED E’ SUBITO SERA

    Ognuno sta solo sul cuor della terra
    trafitto da un raggio di sole:
    ed è subito sera

    --Salvatore Quasimodo--

    =============================

  5. #5
    BrunetteGoddess
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    Default Re: I don't know where to start

    Those fees sound accurate Maxim. I know when I filed earlier this year in AZ, that's what they are.

    Also to be considered Kaylinn is the Bankruptcy Debtor Education program you must complete costs money too. You must complete one prior to filing, and right before your discharge. Ours was $50 each time.

  6. #6
    Kaylinn
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    Default Re: I don't know where to start

    oh..I just thought of somethign else...

    What about my student loan money? I don't have any now, but the first of the yearI will have a large sum of money in the saving account and in CD's that is from my student loans to pay for school. They can't touch that or anythign right? Is that claimed as income?

  7. #7
    Featured Member maximvsv's Avatar
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    Default Re: I don't know where to start

    Already tendered loans will still have to be repaid, but if you have not been loaned the money, yet, it doesn't get used towards distribution. I haven't looked into it, but I suspect that the proceeds from such a loan are protected, like a pension would be.

    I'll look into it.
    ED E’ SUBITO SERA

    Ognuno sta solo sul cuor della terra
    trafitto da un raggio di sole:
    ed è subito sera

    --Salvatore Quasimodo--

    =============================

  8. #8
    Kaylinn
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    Default Re: I don't know where to start

    Quote Originally Posted by maximvsv View Post
    Already tendered loans will still have to be repaid, but if you have not been loaned the money, yet, it doesn't get used towards distribution. I haven't looked into it, but I suspect that the proceeds from such a loan are protected, like a pension would be.

    I'll look into it.
    I want to repay my loans, as I understand it usually student loans aren't included in a bankruptcy anyway, and that's fine with me. I won't start repaying them until I'm done with school and have a good job anyway.

    But yeah, I just want to make sure they don't take the money, or else I won't be able to go to school.

    When I file, t will be after I have recieved the funds, I'm actually going to use the loan money to file, as it seems to be only a fwe hundred dollars, right? And from whati was reading, if you are to poor, they will waive the filing fees. Being that I am unemployeed, I would qualify as pretty poor.


    One more thing....I have a business lisence for dancing here. I have danced for maybe a total of a month inthe past year, and maybe a total of a month last year. jsut like to hold on to my lisence in case I ever need it. But if you aren't using it, your supposed to call them and cancel it or something. Send them notice you aren't using yoru business.
    What will this matter to a bankruptcy for me to tell them I have a lisence that I don't really use.
    They will ask if I ever dance with it, and I will say yes, rarely. Then they will ask if I paid my taxes on dancing, and i will have to say no, because my dancing is so spotty. I have always held down a job through the yearand filed a normal tax return.

    So what of my business lisence? What will that affect, or will it?

    Gah. Yes, I have fucked up a lot. I'm trying to make ammends and fix my life now. I feel like I'm in soo deep, and no clue where to start digging.

  9. #9
    BrunetteGoddess
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    Default Re: I don't know where to start

    Uh, R and I were both unemployed and poor as shit and we STILL had to find a way to pay filing fees.

  10. #10
    Kaylinn
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    Default Re: I don't know where to start

    Quote Originally Posted by BrunetteGoddess View Post
    Uh, R and I were both unemployed and poor as shit and we STILL had to find a way to pay filing fees.

    . The Filing Fee Waiver Application and Initiation of the Chapter 7 Case
    A. In lieu of paying the filing fee or filing an installment application, an individual chapter 7 debtor may file an application for waiver of the filing fee along with the bankruptcy petition.

    Judicial Determination of Filing Fee Waiver Applications
    A. Standard of Eligibility
    1. The district court or the bankruptcy court may waive the chapter 7 filing fee for an individual debtor who: (a) has income less than 150 percent of the poverty guidelines last published by the United States Department of Health and Human Services (DHHS) applicable to a family of the size involved; and (b) is unable to pay that fee in installments.




  11. #11
    BrunetteGoddess
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    Default Re: I don't know where to start

    Huh. Well we had a great lawyer and still had to pay it.

  12. #12
    AudreyLeigh
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    Default Re: I don't know where to start

    Quote Originally Posted by Kaylinn View Post

    One more thing....I have a business lisence for dancing here. I have danced for maybe a total of a month inthe past year, and maybe a total of a month last year. jsut like to hold on to my lisence in case I ever need it. But if you aren't using it, your supposed to call them and cancel it or something. Send them notice you aren't using yoru business.
    What will this matter to a bankruptcy for me to tell them I have a lisence that I don't really use.
    They will ask if I ever dance with it, and I will say yes, rarely. Then they will ask if I paid my taxes on dancing, and i will have to say no, because my dancing is so spotty. I have always held down a job through the yearand filed a normal tax return.

    So what of my business lisence? What will that affect, or will it?

    Gah. Yes, I have fucked up a lot. I'm trying to make ammends and fix my life now. I feel like I'm in soo deep, and no clue where to start digging.
    I would tell them you thought about dancing because your debt was so high and you thought it would be a good way to make money to pay it off but you just couldnt do it henceforth youre here filing Ch 7. No worries about taxes or having the license.

    Youre correct - student loans cannot be discharged in bankruptcy.

    I agree Ch 7 is the way to go. I did it 2 years ago and its the best thing I ever did.

    My attorney was $800. I paid $100 a week to my attorney. That $800 included the filing fee.

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