Question I'm 22 - Should I File For Bankruptcy?

[jtamay3]

Okay, I don't know if I should file for bankruptcy. I have been researching, especially with that bankruptcy book that's posted in another thread. I would be filing bankruptcy for excessive debt. I have about $60,000.00 in debt from credit cards and school loans. I'm living beyond my means because I had to move out of my mother's house and had to pay for college out of pocket. I only make about $900 a month as I work part time and go to school. My credit score is completely shot as it's in the 450's. Now Chapter 7 looks like the sexy choice, but I wanted to know if I have any other options. I also wanted to know how long would it take to build my credit score to respectable. Before the past year, I had a credit score at 705. Yes, this past year has made me go down faster than a tranny prostitute. It's hard to keep up with the Joneses and also pay for everyday regular stuff. Heck, if it weren't for me moving back in my mother's basement, I more than likely wouldn't be able to pay for school. I thought, if I do file for bankruptcy, now would be the time to do it as I'm single, I don't plan on getting married for a few years(sometime after I finish college) and by the time I'm ready to start my career, my credit will be on the up and up with me.

So I wanna know, is this my only/best option. Also, how long would it take to build up my credit to a respectable level. Any help or info would be appreciated. I'd also like to know what exactly would they take from me as I don't own a car or house. And I haven't made any purchases with anything credit related. I've just been using cold hard cash to buy anything.

[bcvw]

How much of that 60K is CC? If it is small portion, then the rest is not dischargeable. I'd probably find a way to earn some cash and pay down that credit card debt if I were you.

[jtamay3]

How much of that 60K is CC? If it is small portion, then the rest is not dischargeable. I'd probably find a way to earn some cash and pay down that credit card debt if I were you.

I'd say about $20,000. The thing is, I also want to buy a car because it takes me 2 and a half hours each way to get from my job to my house in which a car would only take 20 minutes literally. Now, I'm not looking to go new, I just want a decent used car like a Nissan or Toyota that's reliable and doesn't have 900,000 miles pecked on it. Am I better off going to debt consildation?

[Pinkie86]

I don't know if it'll help, but I can explain my situation to you a little.

I'm 21 and I'm filing. It's a long story but I had to support three people on one income while going to college and working full time.

I owe $31,000 in unsecured debt and $10,000 in student loans (I did my first two years at a Community College to save money, going to a private college for my Bachelor's this fall). Which, after researching here, I'm sure you know that student loans are NOT dischargable. Unless you have exceedingly special circumstances.

However, my situation is different from yours, and I don't owe as much for school.

I remember watching True Life: I'm in Debt on MTV, and this girl filed bankruptcy for around $20,000. So I don't think it's unheard of to file for that low of an amount.

Of course many--if not all--of the gurus around here would tell you that it's best to wait, and get a second job to pay off that debt. Which makes sense; you don't know what the future may hold for you or if you'll need to file later on for a substantially larger amount, and wouldn't be able to. This of course due to the waiting period before you could even think about filing again.

[keepmine]

I'd not file until my finances were stable meaning, a job that will cover the necessities of life plus, offers health insurance. What if you file and get sick and have large medical bills that can't be discharged because, you'd already filed?
You have nothing anyone can take accept, a percentage of your wages should, you get sued and your state allows wage garnishment.
How much longer before you graduate?

[jtamay3]

I'd not file until my finances were stable meaning, a job that will cover the necessities of life plus, offers health insurance. What if you file and get sick and have large medical bills that can't be discharged because, you'd already filed?
You have nothing anyone can take accept, a percentage of your wages should, you get sued and your state allows wage garnishment.
How much longer before you graduate?

2 years.

[kimba251]

Personally I would not file. You are so young and have your whole life ahead of you. Anything can happen. 60,000 is alot of money BUT you are only working part time and still in school. When you graduate you will be working full time and have more money to pay your bills. Aren't school loans payable once you graduate anyways?

I think you are looking for an easy way out of a situation that is not really bad and is it alot like all your peers. The only difference may be they are not trying to lilve like the Jones' at the same time.
Your credit score is low but you could pay your credit cards and build it up. Stop charging on your cards and consider it a lesson learned. Cold hard cash is the way to go. If you can't afford it you don't get it

I don't think many people here filed because they were in a situation like yours. I think you have a way out over time and to tarnish yourself with a bankruptcy so young and when not in dire need wouldn't be in your best interest.

In the grand scheme of things honestly at your age moms basement is the best place to be. If I could go back in time I wouldn't have left there until I could buy a house with cash. You have a chance to still make things right and come out ahead.Don't let yourself get overwhelmed, just take it a day at a time

GL