I am wondering if it is possible to declare Ch. 7 bankruptcy after signing up with a debt management plan. Any help is appreciated, my story follows...
I spent a long time deciding between Ch. 7 and a debt management plan. I ended up signing up for a debt management plan via Take Charge America around 3-4 months ago. They are a wonderful organization, really impressed with the quality of their counselors and services. However, the debt management plan hasn't really eased my burden very much. My debt is entirely credit card debt. I ended up charging up my cards when I was unemployed (and not receiving unemployment), as my previous job was in another country, and I voluntarily left.
Like I said, my debt management payment really isn't much less than my minimum payments on the credit cards. It is somewhat more convenient since I only pay once a month, and I appreciate the lower interest rates that they negotiated for me. But I still find it hard to make the payment given my other obligations. I am living with relatives but am still expected to contribute with food and rent. I have a car payment as well (although the car is actually under my mom's name, so might not be taken into consideration in a bankruptcy case).
I am very appreciative of my relatives for letting me stay with them and paying a reduced rent, yet they also live in a rural area of AZ, and I believe it would be hard to increase my income significantly while staying here. Unless I move to a big city and find a different job, but my income might be offset with a higher rent.
I am trying very hard to increase my income with some freelance work. It has been going moderately well but is also unpredictable.
Sorry I didn't mention any quantities (I find it a bit embarrassing, haha), but I did qualify for Ch. 7 before signing up for my debt management plan about 3-4 months ago. I don't know what I was thinking. I just feel depressed that I am struggling, and having said that, depression also figured into my case and my inability to find a job for awhile (and thus I charged up my credit cards). I am thankfully feeling much better now, but I still feel guilty for getting myself into this situation. It is important to me to be responsible and fulfill my obligations, but I can't help thinking how I would love saving or investing the money that I am now paying towards the debt management plan. I am also in a long distance relationship, and I feel that it is hindering my ability to save money and plan my future with the person I love. I know that might sound selfish, but I just can't believe I am in this mess!
Can I declare bankruptcy even though I am on a debt management plan? I am worried the creditors might give up a fight, especially if I have already signed this debt management agreement with them.
Thanks for your input, I appreciate it
I spent a long time deciding between Ch. 7 and a debt management plan. I ended up signing up for a debt management plan via Take Charge America around 3-4 months ago. They are a wonderful organization, really impressed with the quality of their counselors and services. However, the debt management plan hasn't really eased my burden very much. My debt is entirely credit card debt. I ended up charging up my cards when I was unemployed (and not receiving unemployment), as my previous job was in another country, and I voluntarily left.
Like I said, my debt management payment really isn't much less than my minimum payments on the credit cards. It is somewhat more convenient since I only pay once a month, and I appreciate the lower interest rates that they negotiated for me. But I still find it hard to make the payment given my other obligations. I am living with relatives but am still expected to contribute with food and rent. I have a car payment as well (although the car is actually under my mom's name, so might not be taken into consideration in a bankruptcy case).
I am very appreciative of my relatives for letting me stay with them and paying a reduced rent, yet they also live in a rural area of AZ, and I believe it would be hard to increase my income significantly while staying here. Unless I move to a big city and find a different job, but my income might be offset with a higher rent.
I am trying very hard to increase my income with some freelance work. It has been going moderately well but is also unpredictable.
Sorry I didn't mention any quantities (I find it a bit embarrassing, haha), but I did qualify for Ch. 7 before signing up for my debt management plan about 3-4 months ago. I don't know what I was thinking. I just feel depressed that I am struggling, and having said that, depression also figured into my case and my inability to find a job for awhile (and thus I charged up my credit cards). I am thankfully feeling much better now, but I still feel guilty for getting myself into this situation. It is important to me to be responsible and fulfill my obligations, but I can't help thinking how I would love saving or investing the money that I am now paying towards the debt management plan. I am also in a long distance relationship, and I feel that it is hindering my ability to save money and plan my future with the person I love. I know that might sound selfish, but I just can't believe I am in this mess!
Can I declare bankruptcy even though I am on a debt management plan? I am worried the creditors might give up a fight, especially if I have already signed this debt management agreement with them.
Thanks for your input, I appreciate it
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