young and stupid... now i'm in trouble. seeking advice

[deeptrouble]

hello all... this is my first post here after lurking for a few days now.

i'm currently a 24 year old college graduate, unemployed, and i have about 40k in credit card debts that are anywhere from 3-4 months past due.

my question now is ... should i consider debt reconsolidation (with family help at this point) or just file chp 7?

the reason why i am so bad with money in the first place is that my family has spoiled me way too much to begin with... so i think debt reconsolidation is a bad idea b/c it would be them bailing me out yet again.

chp7 would be better b/c of the debt discharge, but i fear what it would do to my job/career opportunities later down the line.

i wonder about the anonymity this website truly affords, but i need to get advice from people who know more about this than i do.

i know i left a lot of stuff unclarified.. but my mind is racing and i can't do anything to stop thinking about my financial troubles.

aaaaaaaaaaaaaaaaaaaaaaaaaaah

[whatamess]

Hello, & welcome...
As for privacy, is there any these days? Everything your looking at online every day is tracked by your ISP anyhow. Its kind of scary, but what can you do with modern technology? Privacy is not an option anymore.
Back to the BR option.
Do you own anything? Car, expensive electronics, bank accounts, CD's, property...anything else of value? Are you living with your parents?
I think with the way most parents are raising kids that your situation is not at all uncommon. My nieces and nephews are around your age and all in debt too. Im so glad you realized early that you have a spending problem. Now, you can start changing these bad habits and move on. It took me until now, at 34 to realize this. I already had small debt at your age. If I only knew then what I know now....
BR MAY be your only option, unless you get a very well paying job right now and plan on living w/your parents for awhile.
Try calling a few attorneys in your area, get a few free consults under your belt.
Good luck and hang out for awhile here...you will learn lots and be welcomed.
WAM

[rilbrianne]

Welcome

Hello,
Don't feel bad. I'm 24 and in the same boat. I married my debt problem though just kidding, he's a good husband but he was spoiled too and I just didn't realize how important my credit was until I had already screwed it up. Someone correct me if I'm wrong but I don't think someone can turn you down for employment for having BK can they?? I'm sorry I can't answer your question, there are a lot of factors to consider such as how much you or your family can pay each month until you get on your feet and how you'll make it until then, etc

If you own a home or have a car loan, there is a little more to a BK but don't be afraid. You can probably keep those things even when filing BK. I'm still new to this too so others will chime in...

I received some very wise advice when I first joined, not too long ago. Relaaaaax, take a deep breath and think this through. We all know how scared you are right now about being in over your head. I freaked out too when I had creditors calling me 9 times a day but the best thing I could do was calm down and think rationally.

I'll let someone else take over here and give the advice you need because, like I said...I'm still new. I'm filing on Monday pro se and am confident but don't want to give you the wrong advice. This is a very important decision and my case is fairly simple.

Hope you feel better and we are here when you need us.

[deeptrouble]

Hello, & welcome...
As for privacy, is there any these days? Everything your looking at online every day is tracked by your ISP anyhow. Its kind of scary, but what can you do with modern technology? Privacy is not an option anymore.
Back to the BR option.
Do you own anything? Car, expensive electronics, bank accounts, CD's, property...anything else of value? Are you living with your parents?
I think with the way most parents are raising kids that your situation is not at all uncommon. My nieces and nephews are around your age and all in debt too. Im so glad you realized early that you have a spending problem. Now, you can start changing these bad habits and move on. It took me until now, at 34 to realize this. I already had small debt at your age. If I only knew then what I know now....
BR MAY be your only option, unless you get a very well paying job right now and plan on living w/your parents for awhile.
Try calling a few attorneys in your area, get a few free consults under your belt.
Good luck and hang out for awhile here...you will learn lots and be welcomed.
WAM

I have no assets to speak of (no car in my name, house).

I currently live w/ my girlfriend and she is covering rent... I moved down here to be with her and now i'm in this horrible bk situation.

I do have lots of expensive electronics though (which is why i'm in this situation to begin with)

[deeptrouble]

Hello,
Don't feel bad. I'm 24 and in the same boat. I married my debt problem though just kidding, he's a good husband but he was spoiled too and I just didn't realize how important my credit was until I had already screwed it up. Someone correct me if I'm wrong but I don't think someone can turn you down for employment for having BK can they?? I'm sorry I can't answer your question, there are a lot of factors to consider such as how much you or your family can pay each month until you get on your feet and how you'll make it until then, etc

If you own a home or have a car loan, there is a little more to a BK but don't be afraid. You can probably keep those things even when filing BK. I'm still new to this too so others will chime in...

I received some very wise advice when I first joined, not too long ago. Relaaaaax, take a deep breath and think this through. We all know how scared you are right now about being in over your head. I freaked out too when I had creditors calling me 9 times a day but the best thing I could do was calm down and think rationally.

I'll let someone else take over here and give the advice you need because, like I said...I'm still new. I'm filing on Monday pro se and am confident but don't want to give you the wrong advice. This is a very important decision and my case is fairly simple.

Hope you feel better and we are here when you need us.

I have student loans as well but () my parents are paying for those

People say employers can't discriminate against you for bk, but many employers will not hire people that arent in good credit standing.

i'm not sure what that means for me in the long run, but considering i have 5 past due accounts (3-4 months, 2 or 3 are in collections), i feel that this will knock me out of the running for many jobs.

i don't know enough about bankruptcy and credit reporting to know what BK will do to all the negative marks on my credit so far.

i was never proud of being fully carried in life by my parents, but now i feel regretful for having let them do so i guess.

this possible BK is making me realize that i have many many things in my life i need to change / turn around ... i only wish it didn't have to come to this for me to realize it.

[lrprn]

Welcome to BK Forum - glad you found us.

You are in a tough spot. Suggest finding out exactly where you stand by sitting down and sorting through how much debt you owe down to the last penny. Write everything down. Then figure out how much income you have to make to pay it down (not just pay the minimums). Figure out realistically how much you need to live and pay your other bills (rent, food, insurance, etc).

Once you know all this, then you can figure out if getting employment will do the trick and how much you need to be paid, or if you really do need to consider bankruptcy as your only option.

It's tempting to play the bankruptcy card, but it's a very serious financial decision with long-lasting impact (10 years). When you're young, a lot is going to happen in your life over the next 10 years. You should file bankruptcy only because it's the right financial decision to make, not because you see it as a quick and easy fix.

If it looks like bankruptcy is the best way out, then set up appointments for free consultations with 3-4 bankruptcy lawyers in your area. You will learn a lot and have a better feel for what the outcome is going to be if you do file.

I do have lots of expensive electronics though (which is why i'm in this situation to begin with)

Here's a ready source of cash then. Start selling it off. Use the money to help your gf with the rent and utilities. You're a college graduate. Find a job to start getting back on your feet and take charge of your life again. You can do it. You just have to take the first step.

[guzzie]

welcome to you....just to tell you...i wish i was 24...you have your whole life ahead of you....you'll be ok...i stumbled on this site by accident...in the middle of my bk...people have been so kind and i've learned more from this
site in a week than all the books articles, etc. i've read...read what these people say, they have been there...get some good legal advice and take charge of your situation and your life...best of luck to you young man...guzzie

[tofargone]

I think you need to look at it as a business decision and not so much as a personal one.

Weigh the options. If you are that far in debt a bankruptcy will help you get over that hump, but at the same time your credit will be trashed for a while so getting a loan for a car or home in the next 5 years may be a bit more of a challenge ( notice I say a challenge, but very possible ). As for a job it really depends on your field. If you are going into finance it may affect you, if you are going into a non-monetary field it will probably have no bearing.


Now the other side. If you don't file or have someone bail you out, your credit will be trashed anyway for non payment and you will be harrased non stop from your creditors.


While I do not recommend BK to anyone and would honestly look into the option of family bailing you out if possible it is not the end of the world and you and your credit will recover from it.

Good luck with whatever you choose.

[BKOnce]

Even old till now.. I still make mistakes... damn me a stupid old ... life loozer!!!..

[deeptrouble]

right now i'm unemployed b/c of a stupid decision to quit my job about 4 months ago...

i've been on a number of interviews since then, and it's a tough decision for me to try and get a job out of desperation, or get a job that i feel like will be a good fit for me.

my credit being trashed and not being able to get a loan for a car or home concerns me much less than credit being trashed and not being able to get a job i suppose. my family is kind enough to STILL be willing to cosign for me for any loans/credit needs in the future, but obviously they can't help me out on credit checks for employment.

my field isn't finance, but i guess you could say i currently do not have a field

if my family bails me out, i guess it would be better for bankruptcy, but on the other hand, i feel like it would be continuing to live my life as i have thus far - taking very little to no personal responsibility for my actions...

i think i have a lot of mental health issues that need to be addressed ... i go through spurts of impulsive behavior w/o thinking about what the consequences are, years of soft drug addiction, but i have a very supporting family and girlfriend that STILL wants to get married to me even after i told her all this bad news.

3-5 months past due on 30-40k of credit card debt... aaah what have i done...

i feel like i have a lot more i want to say / a lot more questions to ask, but its hard for me to form these questions into clear and easily digestible thoughts

i've already met with 1 bk lawyer, and i guess i don't really know enough to understand if she is a good one or a bad one. i guess her personal appearance kind of put me off - i thought she was a paralegal/secretary when i first saw her in the parking lot of the lawfirm.

uggh so many questions, so little time, i feel like my back is against the wall

[deeptrouble]

my mom and sister pulled my credit report in april or so b/c they suspected something was amiss, and obviously i put things off until july out of fear pretty much.

now i think i should pull my credit report again to see what debts i really owe and how bad my credit actually is at this point, but again, i am fearful to do so..


but what can i do about it now eh?

i think its time to man up and face the business, but still very scary.

[JRScott]

While technically no one can refuse you a job for bankruptcy they can refuse to bond you. Which means you couldn't hold a job that required you to be bonded in some cases. ( Thus you would have trouble getting a job in financial sectors).

Bankruptcy is something you need to think about and pray about.

lrprn suggests a good place to start. Remember to figure in the student loan payment your family is paying, and at least half the price of your rent and utilities (assuming gf is paying the other half). That'll tell you what you need to make. For Credit Cards assume a double minimum payment is needed monthly to ever hope to pay them off (triple is better).

Once you sit down and do this look at how much money you need to earn. Given your education is it a reasonable amount you could earn? If its not a reasonable amount then BK might be your only option. However keep in mind that expensive electronics are not generally exempt property in a BK, you might not be able to exempt it all. What that means is that if you file and its not exempt the Trustee will ask you for money for it or will auction it off.

You could mitigate that by taking it yourself to pawn or sell ( do not sell to friends or family ). Then use the money to meet living expenses. If you sell it to a friend or family when the trustee asks you'll have to tell him about it. They are considered insider trades. Don't do them.

Its good that at age 24 you realize you've had a spending problem. I'm at 37, much better to learn when you are 24 than when you are 37....lot easier to change your habits the younger you are.

Note that Student Loans cannot be discharged in a bankruptcy in almost every circumstance.

[deeptrouble]

While technically no one can refuse you a job for bankruptcy they can refuse to bond you. Which means you couldn't hold a job that required you to be bonded in some cases. ( Thus you would have trouble getting a job in financial sectors).

Bankruptcy is something you need to think about and pray about.

lrprn suggests a good place to start. Remember to figure in the student loan payment your family is paying, and at least half the price of your rent and utilities (assuming gf is paying the other half). That'll tell you what you need to make. For Credit Cards assume a double minimum payment is needed monthly to ever hope to pay them off (triple is better).

Once you sit down and do this look at how much money you need to earn. Given your education is it a reasonable amount you could earn? If its not a reasonable amount then BK might be your only option. However keep in mind that expensive electronics are not generally exempt property in a BK, you might not be able to exempt it all. What that means is that if you file and its not exempt the Trustee will ask you for money for it or will auction it off.

You could mitigate that by taking it yourself to pawn or sell ( do not sell to friends or family ). Then use the money to meet living expenses. If you sell it to a friend or family when the trustee asks you'll have to tell him about it. They are considered insider trades. Don't do them.

Its good that at age 24 you realize you've had a spending problem. I'm at 37, much better to learn when you are 24 than when you are 37....lot easier to change your habits the younger you are.

Note that Student Loans cannot be discharged in a bankruptcy in almost every circumstance.

my expensive electronics consist of 2 computers, a laptop, a tv, video game systems, some car stereo things, and a few other miscellaneous items that i consider expensive.

the first and only BK lawyer i met with told me that i probably wouldn't have to lose any personal property, but i guess she assumed i didn't have a stack of expensive electronics? or maybe she is sheisty and i should keep looking...

[marzipan13]

[QUOTE=rilbrianne;99303]Hello,
Someone correct me if I'm wrong but I don't think someone can turn you down for employment for having BK can they?? QUOTE]

I think some companies can and do... especially if they are FDIC insured/regulated. I gave up applying for jobs at banks because once they pulled my credit report, I was denied the job.
I've even had interviewers ask me how my credit is and if I've ever filed bk,
because they consider someone with bad credit and bk a risk-employee... especially in a bank!

[marzipan13]

your sister and your mom pulled your credit report??!
sue them! jk