what should i do?

[Graphic]

Ok. I am really not sure exactly what my best thing to do is.

My situation is basically this.. have about 10k in credit cards still owed.. and around 10k on a vehicle that got repoed.

After my vehicle got repod my parents helped me get a new car..and they paid for it, however it is in my name.. The car itself I paid 9200 for.. my state only allows 1k exemption.

However it is my only form of transportation to and from school. I'm still in college (yes i know im young bankruptcy person.. but i got screwed by a few car dealers..and being stupid at the same time)

I have talked to creditors and most of them of course want to do like 60% payment plans... but i know the interest is still at 25% so either way with no job and going to college full time.

So I guess what I am really asking is what are my options on the car and filing bankruptcy? I mean I have the asset of a paid car.. however if they decide to take it what should i do then.. I mean I'm sure they don't care.. I just don't know what to do. If I sell the car and my parents buy another car under their name to let me use.. would that be considered a 'fraudulent transfer of title' or anything? Sad part is im actually going to law school in the fall, maybe bankruptcy is my calling.. who knows lol.

I just don't know exactly what to do.. Don't have enough time to have a full time job / school .. no job that ill be able to get will pay enough to pay the interest rates alone..

Any suggestions would be great

Thanks

[Genenco]

Ok. I am really not sure exactly what my best thing to do is.

My situation is basically this.. have about 10k in credit cards still owed.. and around 10k on a vehicle that got repoed.

After my vehicle got repod my parents helped me get a new car..and they paid for it, however it is in my name.. The car itself I paid 9200 for.. my state only allows 1k exemption.

However it is my only form of transportation to and from school. I'm still in college (yes i know im young bankruptcy person.. but i got screwed by a few car dealers..and being stupid at the same time)

I have talked to creditors and most of them of course want to do like 60% payment plans... but i know the interest is still at 25% so either way with no job and going to college full time.

So I guess what I am really asking is what are my options on the car and filing bankruptcy? I mean I have the asset of a paid car.. however if they decide to take it what should i do then.. I mean I'm sure they don't care.. I just don't know what to do. If I sell the car and my parents buy another car under their name to let me use.. would that be considered a 'fraudulent transfer of title' or anything? Sad part is im actually going to law school in the fall, maybe bankruptcy is my calling.. who knows lol.

I just don't know exactly what to do.. Don't have enough time to have a full time job / school .. no job that ill be able to get will pay enough to pay the interest rates alone..

Any suggestions would be great

Thanks

Well, a lawyer could better answer these questions.

Personally, I think it's not fraud, if you add your parents name to the title. After all, they paid for it (And surely can show transaction of the purchase) so they'd legally have rights to it.

Thus, cutting "Your Share" to 1/3 which is only $3,000 and change. Then, there's possibly "Wild Card" exemptions which you could move the rest of it under.

So, see a lawyer, but yes, get their names on it...Unless the lawyer says "NO!"

[bkinfoseeker]

Is it really worth it to file BK over 10K? That is the question. Consumer Credit might get your Discover and others down to 0%. MBNA won't give you squat and soon they will be part of B of A. Balance transfers could get you as low as 4.99%.

[Kam]

I agree that it seems silly to file BK on 10 K. Have you spoken with an attorney yet? I would pose these questions to him/her first. You said the car is in your name? Is that title and registration ? Who pays for the insurance on the car?

When you say "paid" car -- did your parents pay cash for the vehicle? If they did not, then someone has to be making loan payments on it. If this is the case then whoever is making the payments "owns" the car.

If your parents are "willing" to buy you another car, then perhaps they would be "willing" to advance you a small loan (or investment in your future) to repay some of your debts. I would definately seek the advice from a credit counselor since you will be required to do this anyway before you can file BK.

Has the repoed vehicle been sold? Is this what you still owe on it? Another option might be to simply sell the vehicle and repay as many of your debts as you can. If your parents are "willing" to buy another vehicle then I would suggest a very inexpensive car, one that will get you from point A to point B.

I think there is alot of information missing here: do you live at home, what are your living expenses, do you receive scholarship monies, etc. You say you don't have the time to work a full-time job, so what are you living on? the credit cards?

I know I am throwing stuff out in the wind, but we need a more complete financial insight to offer you the best advice. I'm of the opinion that it is not worth it to file a BK. An attorney can advise you whether you are judgement-proof or not.

[Graphic]

Thanks for the replies. Well Like i said the car itself they havent informed me on how much they sold it for.. they took it in July. I've tried calling numerous times and they won't answer. but at any rate im assuming they sold it somewhere to the effect that I'll still owe around 10k on it. I also owe 10k in credit cards.

My situation right now is.. I just moved to florida in August.. transferred to a different college. Right now I am at my uncle and aunts house until my parents get their place around here.. they live in Miami, but they are getting a place around here. When that happens I will move there. I have an annuity (not in my name) from my mothers death when I was 5 which pays a lot of my daily expenses and what not. I also have a scholarship and pre-paid college tuition.

The reason I haven't asked my parents for any type of loan is because they already do enough for me. I mean I got myself into the situation so I'm just not the type of person to go begging when I need help especially when it comes to 20k. It was their idea to get me the car because they knew I needed one for college to get me around. It's not the nicest car ever, 2001 grand cherokee..50 k miles at the time .. we paid around 9200 for it. (Mind you this is supposd to last thru law school). If we would have known it was going to effect anything bankruptcy wise we would have put it in their name.

At any rate like you said I am not sure if bankruptcy is my best bet either. Hence the questions posed. I did talk to one attorney.. (over the phone) and he told me that the first thing the trustee looks at is going to be transfer of titles. I plan on going Monday to talk to one (attorney) and see what he thinks. Maybe he didnt understand what I meant when I was explaining over the phone.

Also, the creditors did say they would do it down to 60% .. but with no job and still 25% interest racking up daily that's almost pointless u know? What is this CC thing you were talking about where they can get my interest real low? Any links or anything?

I appreciate the timely responses.. hope you all have a great Sunday

[Lightning]

So you have an "annuity" which provides income for your necessities, your parents bought you a car, and you're not paying any tuition, and you're filing for bankruptcy?

Grow up. Get a job. Pay your debts. And stop blaming other people for your problems. You did not get "screwed" by a car dealer. You took out a loan and didn't pay it back. You're the one who screwed them.

[Graphic]

So you have an "annuity" which provides income for your necessities, your parents bought you a car, and you're not paying any tuition, and you're filing for bankruptcy?

Grow up. Get a job. Pay your debts. And stop blaming other people for your problems. You did not get "screwed" by a car dealer. You took out a loan and didn't pay it back. You're the one who screwed them.

lol, I've read some of your posts and you think you are smart, however, you aren't. The annuity pays for my college, and I am out of state and still have to pay MORE aside from that. I did get screwed on a car which is in court right now, so until you know about the situation don't talk about it.

Thanks.

[Lightning]

I only know what you post. I can't read your mind.

[Genenco]

lol, I've read some of your posts and you think you are smart, however, you aren't. The annuity pays for my college, and I am out of state and still have to pay MORE aside from that. I did get screwed on a car which is in court right now, so until you know about the situation don't talk about it.

Thanks.

Stick around Graphic. He's that type that types and doesn't care to know anything about anyone.

But by golly, that never stops him from opening his mouth and inserting foot...It's his one true joy..And our daily dose of laughter...

(Well, except for me, I have him blocked...Quite useful really)

[Lightning]

Read a bit about Genenco. He'd knock his own mother over the head to steal her purse. He's made just about every money mistake known to man. He actually believes the world is out to get him, and he shouldn't be burdened with the responsibility to *gasp* get a job and pay the bills.

[Lightning]

I have an annuity (not in my name) from my mothers death when I was 5 which pays a lot of my daily expenses and what not. I also have a scholarship and pre-paid college tuition.

The annuity pays for my college,

I believe the phrase I'm looking for is, "Liar. Liar. Pants on fire."

If you're going to be a true deadbeat, pick one story and stick with it.

[StaciMM]

About the car in your name... If you sell it, you'll want to do the best you can to get a fair price for it. If its worth $7500 and you sell it for $2000, you will have fraud issues. Even if you do sell it for a fair price, it won't solve the problem because FL doesn't allow much in exemptions. Since your living expenses, college, etc. are covered, other than BK attorney fees, the cash on hand is going to be an issue too.

Backing up a little, what is pressuring you to do something RIGHT NOW? You have no income that can be garnished, and you own no property. I don't know the laws in your state, but the worst I can think of is they could get a judgement and attach your bank accounts. That is easy enough to avoid-don't leave money in an account. Basically, your creditors cannot do anything to you, other than call. (And if you're dealing with collection agencies, you can tell them not to call.) I realize there may be more to your motives, I'm just trying to give you something to think about.

How long are you in school, and what are your prospects for getting part time work, summer work, etc. It sounds like you don't have much in the way of living expenses-since you stay w/ family and have the annuity, scholarships, etc. If you do nothing right now, yes the balances will get a little higher. When a little time passes, you might be in a better position to handle your debts. If not, you could proceed with filin then if it turns out to be your only option.

[Graphic]

Well I don't have to do anythign now, your right really..except for the car issue. I just figured why not do it now while it isn't as high. I really just wanted to get the feeling off my back.

As to lightning.. I live out of state... scholarship (not a full one.. only 3k a year) and pre paid college tuition (only pays 143.00 dollars per credit hour) my tuition is around 10k a semester.. classes alone. Then add books and you can do the math.... well maybe you can I'm kind of worried if you can or not.

Anyways, your opinion is a moot point to me. Thanks for your reply staci

[StaciMM]

No problem!

It seems that you have family who is willing & able to offer help when needed. My personal opinion is to save that for when you don't have other options.

A couple of points worth noting:

1. Most states have minimums that you have to make before you can be garnished. This may vary for FL, I haven't looked up the info there-but the common basis is the first 30 X $5.15 per week that you BRING HOME is safe. If you're in school, I imagine that at most you'll work part time. So if the creditors do get judgements, they probably cannot touch your paycheck if you don't bring home more than that.

2. Think about how long you're going to be in school. Do you foresee your current income/school situation to continue for 1 1/2 months to 2 years or more? If so, have the car transferred to the names of those who bought it for you if this is something they're willing to do. Transferring property within 1 year of filing BK is an issue, but in all honesty, right now its a bit premature to say that is the road you're heading down.

3. Do what you can to work a part time job (yet not hurt your studying) and save as much money as you can. In time, you might be in a position to make arrangements-on your terms-with your creditors. If a year or two go by then they might be open to settling for alot less than they're demanding now. I'm not a financial expert, but look for somewhere to keep your savings that woul be safe from garnishment. (I'm not recommending anything illegal-just that you research your options and know for yourself what the outcome possibilities are.)

[sunshine08]

Graphic, ignore lightening (however, I can't understand him admitting he can't do everything, I felt sure he was a mind reading wizard).