Any point of settling debt if credit is already trashed???

[Beeheery]

hi everyone,
i am contemplating just settling my debt since my BK seems to be alot more involved than I thought. I am no asset but too many circumstances and so many different answers has me thinking I should just wait till I can pay 20% of the total debt after it goes through a few more collection agencies. My question is, is there ANY benefit of settling vs BK if my credit is already horrible (415). I like the idea of settling which means I dont have to worry about losing any assets once I obtain them, but if it won't do a damn thing for my credit score, whats the point?? Any help from anyone would be much appreciated. Thanks.

[ready2puke]

If you dont have any assets it wont matter. You do know your'll going to be 1099'd for the amount you didnt have to pay as your income..That might make a differnece for you. If you dont mind paying then its up to you. You may or may not get 20% tho, so keep that in mind. You may get more or less.
After you BK and are discharged you can get assets.

[HHM]

Honestly, if you are no asset, how complicated could your case be? Aside from assets, the rest of the BK comes down to timing.

What exactly are the issues with you filing BK?

[Beeheery]

Hi HHM,
Its because I live with my roommate and he pays 100%. And according to some, I have to include HIS information in my BK and not my own. Then some people say no, just my income and others are saying both. His income has changed so much in the past 6 months and then will again in Feb. I just have no idea what to do and it seems to be overwhelming. He got very upset when I mentioned I might need his information as I told him he wouldn't be tangled in this mess. He also hasnt filed taxes in 2-3 years since he never made enough. And I dont know if that will be an issue. Im just so stressed out and sick to my stomach over everything. I dont know if he would have to go to the 341 with me and I am just so worried. I thought since I was no asset it would be easy as pie but I guess not.

[HHM]

I think you are over-thinking this, and you are getting advice without the people advising you knowing all the facts.

As I understand it
1. You have no income
2. Your roommate pays all expenses.

Thus.
a. Your roommate would not go to the 341 meeting.
b. You can file for chapter 7 and you can get it discharged.
c. Yes, your roommates income would need to disclosed in the BK, but only to the extent that he contributes to your expenses.
d. You have no income, thus you have no ability to pay back your debt. The bk court cannot force you into a 13 and use your roommates money.
e. Aside from the mere disclosure of your roommates income and expenses, your roommate is not involved in your BK at all.

Thus, go get a lawyer and file BK.

[Beeheery]

Thanks HHM,
I feel better already. I am filing pro se because we don't have enough money for me to get a lawyer. I am just going to file this week and then if the trustee requests his taxes/pay stubs, I can just tell them that he never filed and I am sure we can find paystub records somewhere. Oh, so do you know if I just average his income over the past 6 months and put that on the Schedule J? Will I need to include BOTH his and my bank statements for the past 6 months or just his?? I filed taxes last year. I made $247.00. LOL. Our expenses have been the same but his salary went up and down and up and down. Thanks sooooo much I feel a TON better!

[jeb]

Bee, if you are going to do this yourself, I highly recommend the NOLO book - ebook download is reasonable.

There are some errors, I understand, but it does explain things in a manner that you can learn a lot about the whole process - an absolute necessity, IMHO. - jb

[Beeheery]

Hi Jeb,
I have the NOLO book. Not the most recent that just came out but the one before it. I looked through the book and did not find anywhere about situations like mine with a roommate etc. I LOVE the nolo book because they have the tear out forms in the back! I am going to fill them out and I guess make copies at the courthouse when I go. I just was hearing so many diff things about what I need to put on Schedule J that my head was spinning. Thanks

[drowningNdebt]

You aren't alone. My credit is trashed too. AND your right it is tuff out there

[Beeheery]

yep. i hear ya. and the really crappy thing about it is my credit was PERFECT up until last April when I had a surgery. Then another. and then another. 1.5 years no work=no money=cant pay bills=crap credit score.