Collections-Stopped paying 1 year ago!

[arami008]

I have not been able to pay for about a year now, the car loan is only 2 months behind...I was wondering if I can still file BK and get successfully discharged? I only have CC and a phone bill in debt=20k

[SinkingFast]

There is no debt minimum to filing BK.

Debt level is really relative to your income level.

$20K to you may be like $200K to other Posters here.

[lrprn]

I have not been able to pay for about a year now, the car loan is only 2 months behind...I was wondering if I can still file BK and get successfully discharged? I only have CC and a phone bill in debt=20k

If you want to keep your car, then the payment must be caught up before you can file Ch 7.

Depending on your circumstances, $20K typically is a somewhat low amount of unsecured debt to file bankruptcy on - kind of like killing an ant with an elephant gun . If it isn't too personal, you mentioned in another post that you are unemployed. Are you still actively looking for a job? Do you own a house or any other secured assets? If you don't, then you are essentially asset-free. Even if the credit cards and phone company sue you, what is there to take besides the car if you don't file Ch 7?

[SinkingFast]

If you want to keep your car, then the payment must be caught up before you can file Ch 7.

To be frank, $20K is a somewhat low amount of unsecured debt to file bankruptcy on - kind of like killing an ant with an elephant gun . If it isn't too personal, you mentioned in another post that you are unemployed. Are you still actively looking for a job? Do you own a house or any other secured assets? If you don't, then you are essentially asset-free. Even if the credit cards and phone company sue you, what is there to take besides the car?

No house. One car. No income. On Public Assistance.

Sounds pretty much Judgement Proof other than the car.

Arami,..............

Creditors aren't going to throw good money after bad. They'll check you out before coming after you.

They'll pull your Credit. See how much you owe and to who. Have you been paying anyone else??

They'll check county records to see if you own property and what it is.

They'll check for bank accts, to see if you work. Where you work. How much money you make.

They'll know all that before deciding whether to come after you or not. In your case, sounds more like not.

BUT,........... $20K today can grow immensely over time. Creditors continue adding lates, penalties, fees, interest, etc. So $20K today can easily be $100K in 10 years.

AND,........... Will you always remain Judgement Proof??!! With Creditors hanging over your head, you're pretty much setting yourself up as a slave to living in poverty.

Another thing to consider is timing. If you're gonna remain in pretty much the same circumstance as you are right now, there's no need to file ASAP.

You've said you're going to school. So eventually, you're hoping to better your circumstances with your Education. If you're planning on going into Finance and some other fields, having a BK on your Credit can hamper your job prospects.

Just some things to think about.