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In a really bad situation, any advice is appreciated.

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  • In a really bad situation, any advice is appreciated.

    Hello folks, I'm new to the forum and would greatly appreciate your advice.

    To keep this long and horrible situation kinda short...here goes.

    11 months ago I relocated New York to Arizona, mainly because I love the climate out here and freedom, plus it's much cheaper with apartments. I got an apartment, and started looking for jobs after a month. Unfortunately I can't get work out here and I put everything on my credit cards, rent, food, gas, everything. I recently started paying off but right now here's where I'm at.

    -I have $8,000 cash left to my name.

    -I have 8 credit cards, with a total amount of credit card debt at around $27,000

    -My leased car is going to get repossessed soon, I owe $15,000 on the lease it's a $600 month note (can't pay this)

    -My motorcycle was a finance, it will be repossessed soon and I owe $7,000 on that it's a $150 note (I might still pay this to keep it if I land a job)

    -I recently financed a Pickup truck while my credit was still good, I wanted a truck I know I was going to be able to literally LIVE out of in case I couldn't afford my apartment, this is a finance also. I WANT to keep this because if crap hits the fan I could shack in it.

    I have a job interview soon, and it would barely pay for my rent and the truck. Once I get the job, should I file Chapter 7 so I can keep the truck and apartment? Is that amount of Debt enough for a Chapter 7?

    I would love to pay all that back, but honestly it would take me forever plus i'm terrified of having my wages garnished while working a job that can barely pay for my apartment and truck.

    I stopped paying for the credit cards because the payments are like $1300 a month and again all I have is $8,000 to my name. I still have rent and the truck payment to make.

    This is all my fault, I really put myself in a hole, and now I wish I just stayed in New York. I had a job paying $70,000yr and fico score of 770. It's really depressing, especially being a 37 year old man. I should have know better. I hope I don't get arrested for owing all of this debt, apparently Arizona uses tactics similar to debtors prison. I can only imaging that, I'd be homeless after getting out of jail. It sucks having no friends or family close by, everyone is in New York.



  • #2
    Whether you ultimately qualify to receive a Chapter 7 discharge depends on a bunch of variables that includes the county in which you live, your allowed expenses, and your debt. A good way to get a quick look a the so-called Means Test is to hop over to legalconsumer.com and try their free means test. That should let you know if you're a candidate for Chapter 7.

    As for all the debt, it happens. We tend to live just beyond our means and many of us are just a single paycheck away from disaster. Been there; done that; have the bankruptcy to prove it.

    If you go the bankruptcy route, you are certainly not going to any debtors prison -- although some equate a Chapter 13 as being in some sort of debtors purgatory.
    Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
    Status: (Auto) Discharged and Closed! 5/10
    Visit My BKForum Blog: justbroke's Blog


    I am not an attorney. Any advice provided is not legal advice.

    Comment


    • #3
      Thanks brother! It is pretty scary. I might be heading back to New York because I have many connections between friends/family. Most importantly friends that are higher up and have pull to get me a job. It sucks having NOBODY out here. No wonder why there is a ton of homeless people out here from allover the US, it didn't work out for most of them and they wound up on the street. There's a lot of druggies, but most of the time they are nice, people that can't make it home. I do not want to end up that way.

      As far as the repossession of the car/motorcycle, what happens if I move back to New York and the vehicles were repossessed out in Arizona, I could do a voluntary and give it back to them here in Arizona.

      Comment


      • #4
        If you're going to move, it may make more sense to surrender them in Arizona so that you don't need to "drag" them 2,500 miles across the country.
        Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
        Status: (Auto) Discharged and Closed! 5/10
        Visit My BKForum Blog: justbroke's Blog


        I am not an attorney. Any advice provided is not legal advice.

        Comment


        • #5
          When people go to jail for debts, it is for not complying with a court order. They are jailed for contempt of court. So, if you get a summons ordering you to appear in court, be sure to appear and comply with any other terms of court orders directed at you.
          LadyInTheRed is in the black!
          Filed Chap 13 April 2010. Discharged May 2015.
          $143,000 in debt discharged for $36,500, including attorneys fees. Money well spent!

          Comment


          • #6
            Originally posted by LadyInTheRed View Post
            When people go to jail for debts, it is for not complying with a court order. They are jailed for contempt of court. So, if you get a summons ordering you to appear in court, be sure to appear and comply with any other terms of court orders directed at you.
            I thought if someone didn't show up they would just get an automatic judgment against them, but not arrested?

            Another thing, let's say I move back to NY, would they want me to go back to Arizona for Court? Or would they do it in NY?

            Comment


            • #7
              Originally posted by Trevor View Post

              I thought if someone didn't show up they would just get an automatic judgment against them, but not arrested?
              That is true for the summons you receive when you are first sued. It will say that you should respond by filing an written answer. It will also say that if you don't file an answer, a default judgement might be entered against you.

              If the creditor gets a judgement, you might then receive a summons to appear at a debtor's examination. It would order you to appear at a specific time and place and say that if you fail to appear a warrant might be issued for your arrest. It is failing to appear after receiving that kind of summons that result in people going to jail.

              It is important to read anything you receive and consult an attorney if you don't understand it.


              Originally posted by Trevor View Post
              Another thing, let's say I move back to NY, would they want me to go back to Arizona for Court? Or would they do it in NY?
              I only know a little bit about this and I learned about it a long time ago. So, please get confirmation. Most likely, they would have to sue you in NY. In most cases, they have to sue you where you currently live. There could be exceptions that I am unaware of. They might also sue in AZ by getting an order allowing them to serve you by publication because they can't find you. Then they would end up getting a default judgement without you knowing. But, to collect against you, they would have to file that judgement in an NY court to get a sister state judgement before they can collect against you. You could avoid a default judgement in AZ by informing them of your new address, but then you will make it easier for them to find you and sue you in New York.
              LadyInTheRed is in the black!
              Filed Chap 13 April 2010. Discharged May 2015.
              $143,000 in debt discharged for $36,500, including attorneys fees. Money well spent!

              Comment


              • #8
                Originally posted by LadyInTheRed View Post

                That is true for the summons you receive when you are first sued. It will say that you should respond by filing an written answer. It will also say that if you don't file an answer, a default judgement might be entered against you.

                If the creditor gets a judgement, you might then receive a summons to appear at a debtor's examination. It would order you to appear at a specific time and place and say that if you fail to appear a warrant might be issued for your arrest. It is failing to appear after receiving that kind of summons that result in people going to jail.

                It is important to read anything you receive and consult an attorney if you don't understand it.




                I only know a little bit about this and I learned about it a long time ago. So, please get confirmation. Most likely, they would have to sue you in NY. In most cases, they have to sue you where you currently live. There could be exceptions that I am unaware of. They might also sue in AZ by getting an order allowing them to serve you by publication because they can't find you. Then they would end up getting a default judgement without you knowing. But, to collect against you, they would have to file that judgement in an NY court to get a sister state judgement before they can collect against you. You could avoid a default judgement in AZ by informing them of your new address, but then you will make it easier for them to find you and sue you in New York.
                Thanks a bunch, that all makes sense now. I'll see what happens when the time comes, I just wish I could just hit the Lottery to pay all this off lol. What a dream that would be.

                I'm speaking to some people back home, and the last thing I want to happen is I start getting my old life back, and something like an Arrest comes to ruin everything. I have a clean record, literally not even a speeding ticket.

                Comment


                • #9
                  Eligibility for a Chapter 7 discharge is based on your current financial situation at the time you file. Therefore, if you get a job which "can barely pay for [your] apartment and truck", you would easily sail through the means test and qualify for Chapter 7.

                  Also, I don't know how much your rent and truck payment are, but stopping payments on everything else should allow you more time to become employed and start earning money.

                  Comment


                  • #10
                    Another thing you have to think about is that on the date you file a Chapter 7, you can only have so much actual cash available to you. I know this varies from state to state, but in Indiana we are only allowed to have $400 to our name. Keep that in mind and look into it. You will want your money to be spent on necessities also... you can't gift it to someone or blow it on something obvious at the last minute.

                    Comment


                    • #11
                      Originally posted by bcohen View Post
                      Eligibility for a Chapter 7 discharge is based on your current financial situation at the time you file. Therefore, if you get a job which "can barely pay for [your] apartment and truck", you would easily sail through the means test and qualify for Chapter 7.

                      Also, I don't know how much your rent and truck payment are, but stopping payments on everything else should allow you more time to become employed and start earning money.
                      My last payments to the credit cards was 2 weeks ago. Literally I payed each minimum payment between all my cards and it was around $1300 total. Do you think I should stop paying those off? This would help me with the remaining cash I have, I just am very worried about having all of those credit companies coming after me in court. No joke I lost weight this week just from not eating because I'm so nervous about my current situation.

                      Comment


                      • #12
                        I tried to relocate from PA to FL back around 2003. It was a pointless move. Yes, it was "cheaper" to live down there, but I couldn't even get a job at Dunkin Donuts! Nobody was hiring at the time. It was right after 9-11, and my degree was useless by then.
                        I much prefer to remain up north, horrible winters and all. Despite the higher cost of living, I think the job opportunities provide more realistic wages and job security.
                        Get a consultation with local bankruptcy attorney, and get a consultation with one from NY. I've heard some nasty things about AZ jails, and going into one would probably hurt any job prospects in the future.

                        Comment


                        • #13
                          Originally posted by Habesnicht View Post
                          I tried to relocate from PA to FL back around 2003. It was a pointless move. Yes, it was "cheaper" to live down there, but I couldn't even get a job at Dunkin Donuts! Nobody was hiring at the time. It was right after 9-11, and my degree was useless by then.
                          I much prefer to remain up north, horrible winters and all. Despite the higher cost of living, I think the job opportunities provide more realistic wages and job security.
                          Get a consultation with local bankruptcy attorney, and get a consultation with one from NY. I've heard some nasty things about AZ jails, and going into one would probably hurt any job prospects in the future.
                          Oh trust me, the jails in NY ain't too much fun either lol, used to know a bunch of Correction officers out there.

                          Yeah this whole move to Arizona was one big giant mistake, and I screwed myself royally in the process.

                          Comment


                          • #14
                            Originally posted by Trevor View Post

                            My last payments to the credit cards was 2 weeks ago. Literally I payed each minimum payment between all my cards and it was around $1300 total. Do you think I should stop paying those off? This would help me with the remaining cash I have, I just am very worried about having all of those credit companies coming after me in court. No joke I lost weight this week just from not eating because I'm so nervous about my current situation.
                            All situations are different but our attorney advised us to stop paying credit cards immediately. We didn't pay our credit cards for almost a year and never had a company even mention court. Yes, they will bug the hell out of you with phone calls, but it's fine. You don't have to pick up. There's a lot of good resources on here for dealing with the collectors. Also you need to know you can't pay one credit card and not another, or pay a friend off, but not your credit cards. It's preferential payments and the court does not look kindly on those. If you stop paying your debts stop them all except whatever vehicle you are keeping.

                            Comment


                            • #15
                              Originally posted by Janetdoe View Post

                              All situations are different but our attorney advised us to stop paying credit cards immediately. We didn't pay our credit cards for almost a year and never had a company even mention court. Yes, they will bug the hell out of you with phone calls, but it's fine. You don't have to pick up. There's a lot of good resources on here for dealing with the collectors. Also you need to know you can't pay one credit card and not another, or pay a friend off, but not your credit cards. It's preferential payments and the court does not look kindly on those. If you stop paying your debts stop them all except whatever vehicle you are keeping.
                              Yes thank you! Funny you should bring this up because my minimum payments are due in a few days, I'm not going to pay them. Right now I'm only going to pay for my truck which I plan to reaffirm to keep (finance $480month), because my new job (jan 26th) is 30-45mins away all highway and of coarse I need to pay my rent/food/utilities etc. Discover is the only ccard I'm really worried about because I took a $2500 cash advance in November...so they will come after me I'm sure even if I file CH7 waaaay down the road.

                              Thank you! I can't wait to have this well behind me, it's been a crazy life lesson.

                              Meeting with an attorney soon, I need to fill them in on the situation etc plus the fact that my new job will pay anywhere from $47-60k yr (commission) hopefully I'll be able to pass the means test if I only work for 2-3 months before filing. I would rather do a CH7 to discharge all the debt except the truck, but we'll see what happens. I'd rather not do a CH13 and pay off stuff 3-5 years, but again, we'll see where it goes.

                              Have a good night!
                              Last edited by Trevor; Yesterday, 01:10 AM.

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