I'm kind of in a lucky position. I realized a couple months ago I wouldn't be able to continue to pay my credit card debt and ever get ahead. Paying cc's on time, and only paying the minimum, and then using them to buy food and gas... yeah I wouldn't get ahead. I had my first appt yesterday with an attorney, and I qualify for the chapter 7, but she made a very interesting point with the chapter 13. I recently in April traded in my pickup truck for a Honda civic (I work at a resort which is about 20 minutes outside of town, and my truck wasn't fuel efficient in the least), looking through my paperwork she saw that they added negative equity onto the loan, over 6k worth.
I went in thinking chapter 7 would be the best option for me, but after she explained that she would be able to take out the negative equity from my car loan, and I would be able to pay off the car in 5 years vs. 7, I won't have to put up front the money for her but only a small amount (in my situation ever little penny helps because I am that tight on $$$), and a good chance my payment would go down. I like that better, I could probably even do a bit better APR (mine is at 8.8) but only just a little. Because of the purchase of the car, she advised me to stop using the cards, which I have; and I will need to pay my credit cards for a couple more months to show them, I just wasn't racking up the cards, getting a car and buying a computer, and then filing for bankruptcy (which she said would look like fraud). I know that it doesn't look good (getting the car, required me to transfer credit card balances over, and then put nearly 3k down on another credit card because the new lender wanted more down before they would approve the car loan) but I guess I just want a few people's opinion?
I don't own any property. I live in a house with 3 other people. The only thing I have in my name is the 3 cc's (23k in total of debt), and the car (roughly $21k I now owe). I think in the end, going with the chapter 13 is better in the long run. The attorney told me that the unsecured debt would go away, and I just would have the car loan, her fees, and the % for the trustee. And I'd have that paid off in 5 years. I did some research and I saw that if I wanted a credit card in the future (and still in the payment plan) I would have to get it approved first by the trustee (which isn't a huge deal; I really don't want to think of getting or wanting a credit card now, I've learned my lesson the hard way about that), but is it true after the 5 years of paying, that the bankruptcy will stick to me for another 3-4 years ? I just want to make sure, I'm almost 27, and I would like to by the time I am in my mid 30s to be able to get a house.
Sorry if this is a bit long winded. Any advice or opinioins are greatly appreciated.
I went in thinking chapter 7 would be the best option for me, but after she explained that she would be able to take out the negative equity from my car loan, and I would be able to pay off the car in 5 years vs. 7, I won't have to put up front the money for her but only a small amount (in my situation ever little penny helps because I am that tight on $$$), and a good chance my payment would go down. I like that better, I could probably even do a bit better APR (mine is at 8.8) but only just a little. Because of the purchase of the car, she advised me to stop using the cards, which I have; and I will need to pay my credit cards for a couple more months to show them, I just wasn't racking up the cards, getting a car and buying a computer, and then filing for bankruptcy (which she said would look like fraud). I know that it doesn't look good (getting the car, required me to transfer credit card balances over, and then put nearly 3k down on another credit card because the new lender wanted more down before they would approve the car loan) but I guess I just want a few people's opinion?
I don't own any property. I live in a house with 3 other people. The only thing I have in my name is the 3 cc's (23k in total of debt), and the car (roughly $21k I now owe). I think in the end, going with the chapter 13 is better in the long run. The attorney told me that the unsecured debt would go away, and I just would have the car loan, her fees, and the % for the trustee. And I'd have that paid off in 5 years. I did some research and I saw that if I wanted a credit card in the future (and still in the payment plan) I would have to get it approved first by the trustee (which isn't a huge deal; I really don't want to think of getting or wanting a credit card now, I've learned my lesson the hard way about that), but is it true after the 5 years of paying, that the bankruptcy will stick to me for another 3-4 years ? I just want to make sure, I'm almost 27, and I would like to by the time I am in my mid 30s to be able to get a house.
Sorry if this is a bit long winded. Any advice or opinioins are greatly appreciated.
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