I really dont want to file....

[babalaco]

Ok heres my deal. Im a 24 year old graduate student. Over the past 2 years I have unfortunately racked up 25K in Credit Card debt. I also have 16K in a auto loan. A lot of my debt was a result of fiscal irresponsibility and poor judgement. I currently make 18,500 a year. I will begin a job in May which will pay toward 40k.

I really dont want to file because I am ashamed that I screwed up so young, and do not want to take the easy way out. I plan on going to Law school part time in a year, and therefore dont want the blemish of BK when I apply for job at Law firms and corporations when I graduate.

Ive been told that you shouldnt file if you think you can become debt free in 3-5 years. I am currently WAAAY behind on payments of my credit cards. WHen I take this new job, I want to get debt free over the next few years. So i guess my big question is whether it is really feasible to paydown my debt. I have no kids, no wife or anything, so that stuff isnt an issue. Im young and was stupid, but have definitely learned my lesson.

Then again, I considered filing because I am so young> It will be a fresh start while I am not tied down with a family and house and assets.

My main concern is its impact on my career possibilities.


Any and all input appreciated!!!

[missy2]

As far as I know bk won't effect your career. I don't want to file either - I understand where you are coming from! But my options have run low. Its either work two jobs or continue to fall behind. If you are sure that you can get yourself out of debt soon then don't file - otherwise maybe you should consider it...

[worriedbk7]

I really wouldn't wait (with the new law and everything) I am also young and don't want to do it. I don't think anyone WANTS to file, but the important thing is that you learn from your mistakes. My lawyer told me that he has seen so many lawyers and doctors filing bk due to living off cc during med school and law school. I look forward to a fresh start and since I am only 27, when I am older, it will all be a blur. I also have a degree and thought "oh when I make more money, I will get out of this hole" but my mother told me something once that is so true. "The more money you make, the more money you will spend" Figuring out how to change your lifestyle is so hard. Good luck in whatever you do!

[babalaco]

thanks for the support. It really is a hard decision to make. A fresh start would be nice

[HHM]

If your already behind on payments, your debt is getting more and more costly with impounding of fees and interest. The rule of thumb about not filing if you can successfully get out of debt in 3 years really applies to those who are NOT behind on payments and can otherwise afford to pay their living expenses plus service debt. You don't seem to be in that position, so BK is probably a good option for you.

It really shouldn't effect your career (but that depends on the type of career). Also, with the changing law, you should probably do it sooner rather than later, because if you are making 40k in may, you may be limited in your options come later this year when the new BK law will probably take effect.

[babalaco]

What careers does filing BK usually become a major obstacle?

[HHM]

What careers does filing BK usually become a major obstacle?

Any job where you would have ready access to cash or checks, or authority over bank accounts etc, they can pull a credit report. Bankruptcy, per se, does not mean you can never be an accountant, but if your going to be handling cash, your application will get a second look because of a BK, and the HR person will probably hire a similarly qualified individual without BK over you. Hiring is still largely a "subjective" decision and as far as I know, a company cannot have a policy that says, no employees with bankruptcy.

However, having a bunch of companies sue you and having a bunch of judgments against you is not a good alternative.

[waziggy]

If you really don't want to file then don't. As of today May is only 40 days away. Stall everyone. Check now to see if where you will work has a credit union and if so contact the credit union about getting an account started under the guise of direct deposit of your paycheck. Credit unions are always easier to work with and usually will offer a signature loan in amounts from $1500 to $10000 when you open a new account - use that to pay what debt is needed to be paid first. Right now put together a spreadsheet listing your debt by credit card or institution, interest rates charged and minimum allowable payments and then sort it in descending order by amount due with the highest interest rate. Contact each creditor and explain that you will be starting a new job in May at a better salary and have a plan to get back on track by 5/31/05. Between now and then ask every relative or friend if they can help in anyway - don't be embarassed in asking - you'll be more embarassed if you file BK with the same folks usually. Get creative.

[robivi3]

Fella's, your twenties are a blur. If you must do it, do it now. Your life will likely be much better when you hit your thirties and begin to really branch out into life. Do not put this off. The Trustees are beginning to enforce the new law defacto. If you are a no asset case don't fret it at all. Owning a car you are upside down on is not an asset. Owning a $5000.00 beater is not necessarily an asset, so don't fret it, get started now before the new law comes into play. And please, not to many questions about defacto enforcement, just get it done now.

Remember one great rule of thumb. The Trustee is not your friend, he is an adversary working on behalf of your creditors. You are all likely the Pro bono's he takes as part of the package (in order to get at the juicier, big money cases). Just don't play with him, give your values in garage sale terms. Research your car values by looking at trash heap used car lots online and printing out the pics for proof. DO NOT KBB your car's value! take some unfattering photos of it as well. All of this is ONLY just in case!

The Trustee is a high, high priced Attorney, probably owns a very large firm with a beautiful office building WITH HIS NAME ON IT, mine did. He will show up to the Crappy creditors 341 Chamber (a dismal, spartan room) wearing a JC Penney off the rack suit. When you see him on his own turf he will be wearing an Armani, Rolex while jumping into his Jag, and that was my Trustee! He doesn't want your used computer or TV or your Wal Mart bought home entertainment center or the beef jerky you bought at 711 on your Visa card six years ago, so please don't sweat the small stuff. Just keep what I 've said in mind. Get it done while you are young.

GOOD LUCK!