Need a few suggestions...

[paulka]

My story isn't unlike many in here... I admit my mistakes, and also believe that there were some circumstances in which I had no control over that lead to my financial decline... But in a nutshell... My credit is HORRIBLE. I'm almost 30 and still need a co-signer on anything and everything. Part of the problem is that I pursued a very rigorous course of academic study (Bachelors and Masters programs) and during that time I allowed the charge-offs and collections to build. I was uninsured (my job didn't provide benefits) and have two emergency room visits that I'm sure I'll eventually be sued over... I will be starting my teaching career soon, and need some advice..

I don't feel like I can move forward and pay my student loans, own a vehicle, and essentially LIVE until I clear this stuff up. As a teacher I will not make much money, and the fear of getting sued/garnished just makes me ill. I don't even want to use a checking account out of fear that all my hard-earned paycheck will disappear from it unexpectedly. I'm considering filing in the next year or two to get rid of all of these old debts, and start fresh.

My dillemma rests in the fact that as a suburban teacher I need to have working, RELIABLE transportation. I'll be in the market for a car this summer, and need to think ahead of time about what I should get in order to avoid having it yanked from me. I also will have a co-signature on the vehicle, which makes me weary of the whole process. When i file will i need to reaffirm the car debt? I intend to follow the federal exemptions (my state has no wildcard....) What car price range should I consider? I have NO property (homestead) or anything else for that matter. The computer I use for school doesn't even belong to me... It was purchased by my mother. Essentially I have not a single asset except for my meager checking account which usually has a balance of no more than 100.00 in it. That and the the car will be my only asset.

Suggestions anyone?

[WantToBeDebtFre]

Since I realized I need to file bankruptcy I've wanted to get it over with as soon as possible. Is there a reason you want to wait a year or two? Do you have a vehicle now? If it were me I'd file and then after all my other debts were clear I'd save up my money to buy another vehicle. I realize you want something reliable but you can get a pretty reliable car for about $3000 if you shop around.

[paulka]

Why I'm waiting

I'm waiting because I am finishing my Masters program right now, and it is sucking the life out of me. I work on top of that. I'm going to have to have an attorney help me, and that's not in the fiscal cards right now. I also do not have health insurance yet, and the idea of filing only to have another medical emergency would be BAD. The car I drive right now does not belong to me. It is on loan to me from my brother until the end of the summer. I'd like to be established, and where I want to be before I file. I also am waiting to see if there are any changes introduced in the next year or so to the ridiculous 2005 bankruptcy law changes. The private student loan bubble is about to burst, and congress has been talking about addressing that issue. This, however, is all talk and no action at this point. Any bill putting private loans back into the unsecured status (which is WHAT THEY ARE... credit check required, variable interest rates, etc) will never pass under the current administration. I would reaffirm all of my government loans, (government loans are different.. they actually work with the borrowers to ensure you can pay) but there is one private I would like to discharge if the laws change. Essentially I am holding off to see what happens in the next year or so with life/politics in general. As long as I am "judgement proof" so to speak, I won't file. When I start making a decent living in my chosen profession, and have income to protect (though no assets) is the best filing time for me.

[WantToBeDebtFre]

That’s understandable, for sure. I’m kind of in the opposite position right now. I think I’m at a better point in my life but I feel like I can’t move on until I do this. All my credit card debt would suck me under for a VERY long time. From what I’ve seen if you’re state allows you to follow Federal Exemptions I found them listed here:

http://www.bankruptcyaction.com/fedexemptions.htm

It looks like you can have $3225 for an automobile and I’m not sure how the homestead exemption works (anyone know?). My attorney made it sound like a wild card of 10 thousand dollars if you don’t need it for your house.