22 & Considering Bankruptcy!

[magyar123]

I am a firm believer in Chapter 7s. If you qualify and get discharged you are debt free, and struck a blow against a system of unbridled capitalism, in which creditors profit. Yes it may be hard to re-establish credit, possibly have difficulty finding a job in the financial sector, but with due dilligence you will - and can pat yourself on the back for burning the creditors/their collection goons who have treated you like s..t.

[tnsltwn]

Thank You!

Thank you all for the advice I am digesting it now and after I meet with my attorney tomorrow I will sit down with my parents and discuss my possibilities. Like I said I was considering it and only because my back was against the wall and I was looking for a quick way out which in retrospect may not be beneficial in the long run. It's just hard to stay positive and be optimistic when we turn on the news every day and it only seems to get a little worst then yesterday. I will keep everyone posted and will not make a irrational decision. Thank you all! Much appreciated!

[debtmonster]

I agree with Flamingo. I would live with parents until you were 30 in today's world. The cost of living on your own is now just too expensive. It's not like it was in the 60's and 70's. Inflation has made it too difficult for many people to live on their own. The value of a dollar has decreased way too much.

[Chrisi18]

I'm 23 and filing, and trust me I've tried everything to avoid it. Everybodies situation is different, I don't think age should be a deciding factor on whether to file or not, I think it's more of ... you run out of options, just like everyone else.

I hope you and your parents can work something out, so you don't have to file, as I believe bankruptcy should be an absolute last resort. Good luck!

[NowImDownInIt]

I should clarify that I am 22 and have a 2 year old, so for me at the time it wasn't an option to get a second job. Everything mounted so quickly. I also have a pretty high paying job, so it wasn't really the issue of money coming in, as much as going out... and being unemployed for 3 months earlier in the year.

[NowImDownInIt]

My attorney told me that a Ch. 13 is almost 3x the cost of a Ch. 7. Is that true?

Maybe with their firm, but that's not necessarily true. My upfront fee was $500 and everything else was rolled into my plan. It's a total of $2700.

[debtmonster]

Maybe you have to think, "What do I need credit for?"

I used Lexington Law Firm to get 90 negative items removed from my credit reports and avoided bankruptcy for over 15 years. Now it has gotten to the point where we are making money, but are still in the negative due to debts.

I would try to avoid it at all costs. If people are not sueing you, then maybe you can hold off. They never sued me, so I never filed.

[Pinkie86]

OP - You are not alone. I am 22 and filing.

I had a extremely tough year filled with sickness, supporting my fiance who suffered a back injury, his job loss, my job loss (and shortly after, getting hired at the job I have now and love), and a mother in law who lost everything and had to come live with us. It's a super long story. But suffice to say, I'm around $31,000 in CC Debt, $13,500 in Student Loans (I'm STILL in college), and My fiance and I share our Jeep and we owe $11,500 (it's in his name because I couldn't get a car loan. But Amex gave me $14,000 in credit... go figure).

The point is, I had a horrible year and because my fiance's doctors JUST let him go back to work in May, I had to file Chapter 7. My 341 is tomorrow actually.

Am I sad that I did it? Not anymore. I realized that this is the best decision that I could have made for myself, my fiance, and our future. Our wedding has been a year in the making, and we're getting married on October 24, our 6th anniversary.

I'm actually looking forward to a debt free future. It's been a hard lesson, but I'm glad that I admitted that I couldn't do this, and made, essentially, a business decision. I've learned not to EVER depend on Credit again, to be more financially responsible, and to budget.

Would I recommend it for everyone? ABSOLUTELY NOT. I had super crazy special circumstances that I wouldn't wish on anyone.

But I will say this: its a very personal choice, and only you and a professional can decide what is best for you.

[Hopefull1983]

Yeah I don't think age should be a factor. But as many have said, a BK can certainly pose problems for you in the future. I'm 25 and will be filing CH7 on a little over 50K in debt. It was only after much consideration and many hours of planning/homework that I made my mind up. I actually work for a bank and should know better, but sometimes there is only one way out.

If I was you I would talk to family first, because you can't tackle a BK on your own. See what they think and perhaps they may be able to help you. Secondly, I would consider the ramifications of filing. If you file CH7 all your unsecured debt will be eliminated, but finding a good job may be impaired. Also, trying to rent an apartment will be difficult because most do credit checks. And then the biggest consideration will be can YOU live for the next 10 years with a BK on your record? Things get worse before they get better, but I can assure you things WILL get better.

[debtmonster]

I have friends and relatives who went BK and all of their lives have drastically improved for the better.

I just think you need credit more when you're young. I don't see why jobs don't hire you because of a BK. That absolutely has nothing on your ability to get the job done. Bad things happen to good people.

[Pinkie86]

Truth be told, I've only had one credit check done for me to have a job. And that's the current one I have with the Government.

[debtmonster]

The job I had in Chicago checked. I already posted about this.

I am trying to convince my house to not re-affirm the house and include it in the BK since it's about $20-40k upside down. I want to move out of this place and get a job in a better city where there's much more job opportunities.

[Pinkie86]

Eep, I'm sorry.

What I should have said, is that many jobs around here don't check credit. Michigan has so many foreclosures and BKs, you can throw a rock and find one, so people here in my city usually look the other way.

So by the time I'm financially ready to move away from here, my credit, god willing, should be in good shape.

[debtmonster]

That is good to hear. I hope more and more companies are more lenient due to the bad situation at hand.

I just saw the DOW tank -500 today. I remember reading some place Cramer from Mad Money thinks that the DOW can hit 8200. I feel so bad for all of those old people who were needing that money right now to live and they are having it all taken away from them right before their eyes.

[Pinkie86]

I sure hope so too.

I know. It just breaks my heart thinking about all those poor little old people living on fixed incomes wondering how they're going to eat. My great-grandma being one of them.