Need help with Bankruptcy!!! 24 yrs old.. Please Help!!

[cantpaybills]

I have recently lost my job, I Used to make great money. I am collecting 1200 worth of unemployment a month up until may of 08.

I have 6000 in medical bills.
I have a 24000 car loan.
I have 21000 in cc debt.

I live with my father now. Will I be able to file for chapter 7 or will I have to do 13.

My life has been miserable lately. I am so depressed, I feel like such a failure. I was doing so good Then i got injured without insurance, then lost my job and now it seems I'm carrying the weight of the world on my shoulders. I went from a 720 down to 530 on FICO. Every month I overdraft my checking and I feel that I cant get ahead. I've looked for jobs but everything I find is about 30 miles away. Honestly the pay these jobs are offering is less than what I am getting from unemployment after you figure in the taxes and the gas it would take to get me back and forth to work. I wanna get rid of my truck but I'm completely upside down on the loan.


Help Please any advice.

[oldbaddebts]

First, Welcome to the forum, we have been where you are, and some are still there. The first thing I can say is step back and look at things as a business transaction. If you were in good shape and met someone in your shoes, what would you do? Next best thing would be to find work that will provide an income past May, it may not pay what you are used to, but it can raise your spirits, give you a way to occupy your time rather than stress, and help you see the whole picture.

Then, don't even worry about medical bills or credit cards until you get settled. Do what you can to keep from loosing the truck, or get something real cheap for a short time. I would not recommend filing if you decide to go that route eventually until AFTER you are working and all of the damage is done. It doesn't fix the income problem, only the debt.

If you woke up tomorrow getting your first paycheck at a job that would cover a reasonable car payment and your monthly bills without debt and you are eligible for a CH 7 your problems will be extremely close to over, so have faith, step back and see that there is a POSITIVE light at the end of this path you are on.

You have stumbled on a forum full of very good advice, lots of people that have dealt with all kinds of problems with finances. You can not spend too much time reading the posts and learning from the experiences of the people here.

[cantpaybills]

If I stopped paying medical bills and cc bills I can afford my truck payment, for now. I still dont want to keep it if I file for ch7 simply because I am so far upside down on it now.

[oldbaddebts]

The idea is to pay enough on the truck to keep it from being Repoed until you file, if you choose to. You can time your filing until you it appears you are close to them taking the vehicle. Once you file you will have time to put money aside to get a cheap vehicle or a replacement and/or get financing for one. Sounds crazy but there are places that make it easier to get a vehicle during CH7 BK than outside of BK with bad credit.

There are LOTS of other things to consider (means testing, recent debts, inside transaction, etc..) that haven't been mentioned. My intention isn't to lead you down a specific path, but show that all is not lost, and in short time you can have a "fresh start" to look to the future rather than having the past drag you down.

[Joe Farmer]

Doesn't appear you have anything for creditors to take.

So, do you need to file BK at this point? And filing BK itself costs money, and if you file your father will be involved since he's providing your support. I'd stop paying everything, save your money, buy a new vehicle for cash (minding your state's exemptions) after your truck is repo'd, then see if you need to file BK now at all.

[cantpaybills]

So, do you need to file BK at this point? And filing BK itself costs money, and if you file your father will be involved since he's providing your support. I'd stop paying everything, save your money, buy a new vehicle for cash (minding your state's exemptions) after your truck is repo'd, then see if you need to file BK now at all.

Well How exactly is my father involved. I understand that I live with him but he has no money either. My bills are so far behind I just want a fresh start. Would I be able to trade the truck in for something cheaper and then exempt that vehicle during bankruptcy?

[TabulaRasa]

Hey don't worry about it, it's not really that bad. I thought I was having it bad until I read some posts by other folks here. Just get a handle on things and cover your important expenses first, such as food, transportation, clothing, etc. Just take things one step at a time.

[Cali]

So, do you need to file BK at this point? And filing BK itself costs money, and if you file your father will be involved since he's providing your support. I'd stop paying everything, save your money, buy a new vehicle for cash (minding your state's exemptions) after your truck is repo'd, then see if you need to file BK now at all.

I don't understand why the father would be involved in the BK?

[woeisme]

The father's income and what he provides in support to his son would have to be recorded on the paperwork to determine if the son meets the CH 7 or CH 13 criteria, otherwise there is no involvement. But if son has no job, no income, he can't file CH 13anyhow, it's a wage-earner plan for people with sources of income. It would be highly unlikely that he would fail the means test, unemployment compensation just isn't anywhere close to the median income, and I can't see him having enough disposable income even with father giving support. Stop paying your bills so you can save up enough from your unemployment to pay for your lawyer, which will be a couple thousand dollars. Most will let you retain them with a down payment and can give you advice about how to proceed, but they won't file until you have paid them their entire fee. Good luck.