Filing Chapter 7-Need some answers.

[Smok3D]

Let's begin with a brief into-im 22 years old,and my current income after tax is about $1000 a month.

I'm attending community college on a stafford loan program which is still in deferrment,but the reason I'm filing chapter 7 is a little more complicated.My freshman year of college my stepdad paid for my tution out of pocket.At the end of my semester he lost the tenants in the homes he inherited from my grandparents,so he had to choose between paying the mortgage or my tuition payment.

So,that was a $3500 bill that I couldn't afford to pay with just summer wages.My junior year I got to a different college under a finaid plan comprised of a stafford loan and a PLUS loan.Regrettably the PLUS loan is credit-based,and with my parents having lost the inherited properties due to no tenants/buyers they had a recent foreclosure on their credit-even though they were making the bills at home.

So,after exhausting every scholarship/aid/assistance/and state education office,and being declined by every bank in the land for having no cosigner with good enough credit I tried the Southern Illinois University Aid office-only to find out they were backlogged so bad that they couldn't do anything.

So I left with an outstanding balance of $6500,which has since ballooned to $8000 from late and collection fees.That plus the old bill which also has increased to $4500 leaves me a years salary in the hole.($12,500 roughly)

That plus my credit card debt ($6000) means I'm almost $20,000 in the hole-and on my income I can barely make my bills as is.

(I don't live at home BTW,and moving home isn't an option)

If I had just my car loan ($1800 left) and my credit cards,I'd just starve and pay it off.But the past due tuition isn't possible to pay off on my current income in retail,and I can't assume that ill get a job good enough in after graduation(in 2 years) to pay it all off:I know friends who have degrees who make less than me today.My concern is if I wait much longer the collection agencies may loose patience and seek a judgement via a lawsuit.


With all that in mind I've decided to file chapter 7 and start fresh.I won't be buying a house in 10 years,and my credits somewhere lower than the RMS Titanic as it stands.

Catch is,I'd like to keep my car.Its a low payment ,$107 per month,and its in great shape for the miles.I've only got $1800 left on the loan and the market value is only $2000 tops.Since its the only asset I have besides the shirt off my back,I'm well within the need-based guidelines to file-but how could I file pro se and affirm the car loan with the lender?

Its loaned by my old university credit union ,not some vapid trans-national corporate bank(Thank Jesus) and in the year and 7 months I've had the car I've never missed a payment. I've only got 17 payments to go against an $1800 balance left,and can easily handle $107 a month.

I'm confident that if I can apply for 6 different student loans and deal with running around 4 different state and government offices while looking for student loan help,and file my own taxes/fafsa/finaid documents and loan disclosures that I can file Chapter 7 myself without any trouble.I just don't have an extra $1000 to plunk down on a lawyer.How do I affirm the car loan during the filing process?

BTW,my stafford student loans are in deferrment right now,the total of which is $9000 roughly,and I know I can't include them in the bk (not that I want to anyways.)


Thank you in advance for reading,and I look forward to your replies.

-Smok3D.

[AngelinaCatHub]

Smok: It is a shame a young man of your age has had this distress. I have read your story well. First, attempt to pay your car down $800, you are exempt for a car $1000 in most states. I doubt that a Trustee would want it and you could just keep paying it. That is, let the Trustee know your intent in that you do not want a “preferential payment” charge.

At this time, stop paying any cards. As you well may know, you will not be discharged from your student loans. Attempt to try a hardship dismissal from them, but it is difficult. If you are going C7, the Nolo book is very good at about 15 or 17 bucks download pdf, or twice that hard copy. You will have all the forms and needs in this book.

I wish you well, son. Hang in there. ‘Hub

[Smok3D]

Smok: It is a shame a young man of your age has had this distress. I have read your story well. First, attempt to pay your car down $800, you are exempt for a car $1000 in most states. I doubt that a Trustee would want it and you could just keep paying it. That is, let the Trustee know your intent in that you do not want a “preferential payment” charge.

At this time, stop paying any cards. As you well may know, you will not be discharged from your student loans. Attempt to try a hardship dismissal from them, but it is difficult. If you are going C7, the Nolo book is very good at about 15 or 17 bucks download pdf, or twice that hard copy. You will have all the forms and needs in this book.

I wish you well, son. Hang in there. ‘Hub

Thanks man.I had to grow up almost overnight with all this money stuff.2 years ago I didn't know a deficiency judgement from a mexican pizza.Man,if I knew all this when I graduated High School...but that's another tangent lol.

Here's a link that states that the Illinois exemption for motor vehicles is $2400,which my 2000 Pontiac with 196,845 miles definitely won't top.

http://equitablelawfirm.com/exemptions.aspx

BTW:
How would I notify the trustee of my intent to keep my car?Would I file a certain form that I'm claiming my car as an exemption and that's that ,or would I do that and notify the credit union that I'm filing bk and will continue the payments?

Or do I file,and notify the trustee that I plan to keep the car and does he/she take it from there?

Regrettably,I don't have the option of stopping my credit cards now.I signed up for a sleaze-bag debt considation firm when I as at SIU and panicked when I realized my pay was $10 less than my minimums.
The law firm then took my money($270) for 5 months and didn't pay my creditors one f-in dime.I found out when I opened my SIU mailbox and got a letter that I was going into collections.I checked my credit and saw that my accounts were all red from being delinquent .Johnson Law Firm bent me over real good.

*sigh*

Sorry,but debt consolidation was me trying to fix my mess-and instead of helping I got shafted.

At any rate,any advice for filling out the forms would be awesome.My only assets are my car,a $100 cellphone and some clothes,but its best to ask now lol.

The good thing I take away from all this mess is that it forced me to find joy from something besides my credit score or my wallet.And if I had to go through this,its better now when I've only got my own hide to suffer than when I have a family later on.

-Smok3D