Need Advice(confused and a bit scared)

[MysticD`]

Ok here is the situation. I owe $5,000 in CC Debt, $5,000 in Line Of Credit and have a car which I am financing where after a year I still owe $17,000 on the car and my payments are not that much because my job does not pay that well at the moment. I am able to afford my car payments but the other debt is what is troubling me. I am also troubled by the fact that an ex roomate owes me $5000 which I made a bank draft for that amount(I trusted her and I am paying the price for it)

I forgot to mention that the $5000 that my ex roomate owes me which was charged to my credit card, is the same bank that my car loan is through. Now I am unsure what to do. Should I get my money back from her through court and then file for BK? Also is it possible to keep paying off my car and file for Chapter 7 which would rid me of any other debt? This is a scary situation for me and I hope you could help out. Thanks

[djk]

are you planning on filing bankruptcy in Canada? If so, best thing to do is find a forum similar to this that deals with Canadian law. This forum discusses U.S. Federal bankruptcies.

[SinkingFast]

I don't know how much you make in relation to the total debt,........ And I don't mean this to be rude either.

Your debt level is manageable. Not worth trashing your Credit with a BK.

You can sell the car and buy something cheaper to do you for a while. An old beater you could buy for $2K or less. Live with it just until you can get yourself squared around on the other debt.

Check out small claims court if you have something similar to that. See what the limit is for filing claims there. Our small claims court limit is $6K. You could sue your friend in small claims for a small filing fee, no attny needed, and get a judgement to get your money back that way. It would be best if you had a written agreement stating the terms of the loan. If this whole deal was verbal you may be SOL there.

If you get rid of the car payment, how will that affect your ability to repay the remaining debt?? Can you pick up a part time job and devote all those $$'s to paying debt??

BK is serious, life altering stuff. You don't want to go this route unless it is your absolute last resort. You sound like a young person and I'd hate to see you have to file so young and always be Credit impaired. I know. Many people go on to live what looks like very normal lives. But what they don't tell you is their interest rate to finance a car is always a tad higher than before. Their insurance rates are always a tad higher than before. Some people have lost out on job opportunities due to having filed BK.

So think this thru carefully before you act. Don't start down the BK road until you've exhausted every other possiblity to repay the debt on your own.

[MysticD`]

I don't know how much you make in relation to the total debt,........ And I don't mean this to be rude either.

Your debt level is manageable. Not worth trashing your Credit with a BK.

You can sell the car and buy something cheaper to do you for a while. An old beater you could buy for $2K or less. Live with it just until you can get yourself squared around on the other debt.

Check out small claims court if you have something similar to that. See what the limit is for filing claims there. Our small claims court limit is $6K. You could sue your friend in small claims for a small filing fee, no attny needed, and get a judgement to get your money back that way. It would be best if you had a written agreement stating the terms of the loan. If this whole deal was verbal you may be SOL there.

If you get rid of the car payment, how will that affect your ability to repay the remaining debt?? Can you pick up a part time job and devote all those $$'s to paying debt??

BK is serious, life altering stuff. You don't want to go this route unless it is your absolute last resort. You sound like a young person and I'd hate to see you have to file so young and always be Credit impaired. I know. Many people go on to live what looks like very normal lives. But what they don't tell you is their interest rate to finance a car is always a tad higher than before. Their insurance rates are always a tad higher than before. Some people have lost out on job opportunities due to having filed BK.

So think this thru carefully before you act. Don't start down the BK road until you've exhausted every other possiblity to repay the debt on your own.

Thanks for the reply everyone. I am 27 years old while I am young I have never had to deal with this situation before. I do have a written agreement from my ex roomate saying that I loaned her money and small claims court in Canada is up to a maximum of $10,000 so I am safe.

I needed some opinions and I am happy that there are some very nice people out there to give me advice. I probably would of made a very bad choice by filing for BK so thank you.