Thinking about bankruptcy...

[stefany]

I am not exactly sure how to go about this. I feel like this is my last option....I just had my car repo'd bc i was late 2 months. I was making partial payments but that was not sufficient. I also have about 4,000 worth of credit card debt that has been sent to collections over the past year.

I have student loans out and I am still in school so I am not sure how that works...


Does anyone have any advice for me? I am 24 and would like to make this right but at this point I see no light at the end of the tunnel!

[HHM]

$4,000 is way too little to file BK over and you can't do anything about your student loans, (you are stuck with those the rest of your life). I suppose the only outstanding issue is whether you will be hit with a large deficiency judgment for the repo.

In any event, I don't think, at this time, you are a candidate for BK.

Are you working and in school, or just in school? If you are just in school, then you are pretty much judgment proof...even if your creditors sued you, there is not much they can do at this point. The only draw back is, they can resurface later on down the line when things are going better for you.

[stefany]

I am working, making 11/hr. I actually have (including my car loan) 14,000
worth of debt.


If I am judgement proof currently, what do I need to do to get rid of the cc collectors? I made an appt with an attorney for this week...any suggestions on things I need to say to him?

I am ok with paying back my student loans, I was worried about NOT being able to as I need to finish my degree so I can actually move forward.

This is very very stressful and I don't know how I ever let it get this bad!

[Scream2Death]

hey stephany, i think in your situation it's best not to file bankruptcy with a 4k of debt. work a little more hours and/or use your student loans to repay those 4k of debt.

student loans can always be paid later, after you graduate or you can extend it with forbearance or deferrment.

stick with a used car for now, but i believe the repo will show on your credit.

finish up school and then start making the real dough! =)

i know how it feels by the way, frustration. i have about 100k in debt, so i believe 4k is quite manageble.