25 years old and need advice on bankruptcy... please help

[bktmom28]

All I can say, is you can get alot of info from this forum, but don't let it consume you. Also, when we started getting our calls, I signed up for Google voice. It was a great way to avoid alot of the calls. It may take a couple of days to get an account, but it is free. Once you receive an account, change the contact phone number on your credit card accounts to the number you receive. That was my biggest fear, was having the creditors hound me. Once I spoke to an attorney and we made our decision to file, I informed the creditors of our intent, and they were not horrible as I had feared. Once they got my case number, I never heard another word from them. Trust me, it is much better to be poor and happy, then to be in debt and miserable. The sleepless nights have passed and the new day is here!!!! Remember, it costs the credit card companies alot of money to go after you, so don't think they are going to be on you overnight. Just remember to breathe and don't hesitate to ask questions. The folks on here are INCREDIBLE and understanding!

[dub]

All I can say, is you can get alot of info from this forum, but don't let it consume you.

Along those same thoughts, so much of the decision making by the courts seems to be so arbitrary. Whats normal in a case varies not only from state to state, but districts in those states, and even from trustees in those districts.

[IZZYnGEORGE]

Stop using your c/c and do not take out the $500 cash advance...Make an appointment with a bk attorney...most consults are free depending on what state you live in and who the atty is. When my husband and I filed, we were told to stop paying our c/c and keep a min $ in our checking account...we stopped depositing $ and only had enought $ in our account to pay utilities. we let our collection calls go into voicemail and filed as soon as we could. within 5 days of filing the calls stopped.
We stopped paying our c/c in August and did not file until the end of december...Good luck with everything...this forum is a big help!!!

[meateater]

Hi Ava,
You've gotten lots of great advice here!

How are you paying for school, and how long until you're done? If you've got student loans, when will they kick in, and do you have a plan to pay to them (sadly, with the economy there's no guarantee that you'll find a good job as soon as you finish).

Flamingo's got a good point about how you are paying current living expenses. Assuming all the credit card debt gets discharged, will you be able to pay your expenses going forward? If you can't meet your living expenses after discharging the credit cards, you may end up in the same situation, so it might make sense to try to delay filing.

You've probably got more time than you think. I stopped paying a credit card, and it was not until they were starting to sue me a year later that I filed (other factors contributed). And there is hope - I filed more than 7 years ago. I now have no debt, a budget, retirement savings, and an emergency fund, this will all work out for you.

And, get a new bank account, maybe two new accounts at different banks, as you might have trouble opening new accounts after you file.

[ava1983]

Thanks again for the advice, everyone. I'll be making an appt. with a bankruptcy lawyer next week, but may have to delay the actual filing for a couple months - a couple months without credit card use, basically, so nothing looks deceitful.

But I don't know what to do about all the phone calls.. maybe I should pay a little bit each month until then - can't afford the minimum, but at least something, just so it looks better later?


My Situation: I have a job, work 22 hrs/week, make about $900/mo, and receive Pell Grants to pay for my community college. My rent is $500/mo. Car insurance is about $60/mo. Plus gas, food, utilities, phone bill, etc. all get expensive.

Do these numbers add up? I won't have any credit card to rely on anymore..

I have no student loans, but when I transfer to a four-year school, I know I will have to take some out, if they'll loan me anything.


Next week I'm going to both Bank of America to open a small checking account and a small credit union to open another one there. I hope to mainly use the credit union.


Any more advice?

[mtbc]

But I don't know what to do about all the phone calls

As I mentioned,

You can write to creditors and, with potent legal force, demand that they stop calling you.

Really, look at (c) in http://www.law.cornell.edu/uscode/15/1692c(c).html. Google for a template and send the letters certified mail.

I'd try to manage a couple of months of minimum payments in your position, yes. But I understand that can get too much, especially if you go over-limit and they start tacking on penalties.

[Flamingo]

Thanks again for the advice, everyone. I'll be making an appt. with a bankruptcy lawyer next week, but may have to delay the actual filing for a couple months - a couple months without credit card use, basically, so nothing looks deceitful. But I don't know what to do about all the phone calls.. maybe I should pay a little bit each month until then - can't afford the minimum, but at least something, just so it looks better later?
My Situation: I have a job, work 22 hrs/week, make about $900/mo, and receive Pell Grants to pay for my community college. My rent is $500/mo. Car insurance is about $60/mo. Plus gas, food, utilities, phone bill, etc. all get expensive. Do these numbers add up? I won't have any credit card to rely on anymore..I have no student loans, but when I transfer to a four-year school, I know I will have to take some out, if they'll loan me anything. (snip....) Any more advice?

Ava - i your initial posting you state "I am 25 years old and have almost $30,000 in credit card debt ." With what you describe above you have very low income for a single person possibly bordering on poverty wages. That, combined with the large amount of debt gives you no choice unless you have family members that you can move in with and get your finances straightened out. Even if you file Chapter 7 to eliminate your debt, you still have cash flow and income issues to deal with. I again highly suggest you stop all your credit card payments, make no more cash advances, get that lawyer appointment for a free consultation. You've been living off credit cards for quite a while and it is going to be hard for you to adjust after all this and learn to live on cash only. With income as low as yours, you should be able to obtain some good financial aid/scholarships/grants and I would sit down with your financial aid person at your school to see what can be done to help you further your education and survive on a budget.

I would also highly suggest whent his is all over to get a budget together and stick to it while you finish school. If not, you will find yourself back at the same place you are now. I've put 3 daughters through college and we were in Chapter 13 when the last one entered so I know the money pit involved and financial aid avenues.

As to the calls, just don't answer the phone until you speak with the attorney. The calls will get worse because remember they are trying to collect money you owe them.

Best of luck to you...

[meateater]

thinking long term, any chance you can get financial aid (grants rather than loans) to cover the 4 year degree, or alternatively, find a job with tuition remission that will pay for the degree? I say this because I ultimately went under because I could not afford credit card AND student loan payments with my income, and could not realistically increase it. Student loans are not dischargeable in bankruptcy, in hindsight, i should have explored other ways to pay for my education. how far away from finishing the 2 year degree are you?

As for the phone calls, are you a cell phone or land line person? Can you obtain another phone number for free or minimal cost for friends and family, and keep the other one for creditors only (tell friends about the new number, don't tell the creditors).

[bktmom28]

If your main concern is the phone calls, you should really try the Google voice and change all your phone numbers on your card contact info. I did that and that is where the messages were left. We stopped paying our creditors in August 09, received calls up until the date we filed but after that, they stopped immediately. I tried for awhile, to just ignore the calls when they went to our landline, but it got to be too much to have the phone ringing off the hook. They never contacted anyone besides us, you know, like family members and my husbands work, but once I set up the Google Voice, and changed the numbers to the number that I got from there, I did not get any to my home. We are discharged now and it feels wonderful!!!!!

[ava1983]

Flamingo - you being able to put your kids through college despite bankruptcy does give me hope. Thank you.

Will a consultation with a lawyer be factored into the legal "thoughts of bankruptcy" timeline? Is the date I file the only date that matters, or will talking with a lawyer next week already make me look fraudulent, since I have used my credit card within the past month?

Just worried that talking with a lawyer will make my situation look criminal..

Thanks again.

[viking64]

I just read through the thread, and I really feel for your situation. However, it also seems you'll be able to regain control once you consult an attorney or two and develop a plan. You are entitled to legal advice, and no one is going to deny you that. You attorney can also give you some advice on what to do and not do before filing.

I used a credit card for medication a week before consulting an attorney last summer. Other cards hadn't been used for 3-4 months, and I was current on payments. I was told to stop paying cards immediately, so the card that had medication ($200) never had another payment. It hasn't been a problem. Now, if it was $500 and concert tickets or a stereo, then it could have been a problem.

I would not touch the line of credit you have, though, unless an attorney says it's OK for emergencies. I'm sure it will come back to bit you in some way since everything is with one bank. They have $30,000 of incentive to put up a bit of a fight.

Regarding creditor calls - how long have you gone without making payments? I just turned the phone off for 3 months between consult and filing. Once I knew I was going to file, I did answer each creditor once and told them that, then gave them my attorney's name. Most stopped calling. Three kept calling until I had actually filed.

You're scared because you don't have information. Once you get information and start to make some decisions, you will feel much better. From what you've said, it sounds like a no-asset 7, with you retaining everything you have and just losing the debt.

[Flamingo]

Flamingo - you being able to put your kids through college despite bankruptcy does give me hope. Thank you.

Will a consultation with a lawyer be factored into the legal "thoughts of bankruptcy" timeline? Is the date I file the only date that matters, or will talking with a lawyer next week already make me look fraudulent, since I have used my credit card within the past month?

Just worried that talking with a lawyer will make my situation look criminal..

Thanks again.

I mentioned the fact of my youngest entering college since she is close to your age and I understand all that goes along with it as to cost, grants, scholarships and financial aid. I know what is available to you in your situation and that is something only you can handle by talking to your school finance office to help you. As to your debt and possible BK situation, you need to take the bull by the horns, quit worrying so much (which is TOTALLY normal), and talk to an attorney which is all private and confidential. You can tell your attorney anything you want or ask any question you want and you are protected under attorney/client privilege. All you have to do is stop using your cards, stop the cash advances and speak with counsel. He/she will advise you what to do from that point out. I believe you are afraid to give up the credit cards which are a crutch for you right now. That is understandable but it has to be done...You've gotten a lot of good advice on here...now it is up to you to use it. Let us know how you make out...

[Flamingo]

Closing this thread because the OP opened a similar thread in the same forum. OP, please avoid making duplicate/similar postings as it creates confusion with posters wanting to respond to you. Thank you.