Bankruptcy Or Not
I'm not sure what to do here. I make around 1000 a month and pay out about 950 in living expenses ( rent, car , ins, food, etc). I not only have student loans and a credit card that I pay monthly, but i have a lot of back debt ( about 8,000) and one of the creditors just sent me a letter saying they are going to sue me if i haven't paid the 4500 dollars i owe them now. I can't afford a payment over $20 a month to them. here's the catch--my car, apt, ins, and utilities aren't in my name. can i still verify that they are my expenses? should i look into bankruptcy? 
BK for only $8000
I wouldn't do that. You will pay more that $8K in the following 7-10 years.
You agreed to make the payments, call the companies and explain the situation. See if they will work with you on a lower payment.
Sounds like you need a second job to me. Living on your own, and only making $1K a month.
Either that, or work full time.
I do work full time. and I'm looking for a second job. I have two roommates as well. that's why I'm considering bankruptcy in the first place. I have two degrees and still can't find a job making more than this.
To be honest, it sounds as though, you made up your mind and you're asking for affirmation...
You WON'T find anyone on this site that will tell you, "yeah, sure I would file bankruptcy!"
You will NOT help your situation by filing for a BK. Period! From the sounds of it, you're in a tight spot, "Right now". I will tell you this... A BK WILL stay on your record (7-10 years)... IT IS INESCAPABLE!!
Reminds me of that MasterCard commercial...
Being late on some payments: 5 dollars
Going into collections: 20 dollars
Filing BK: Priceless
That's right, priceless because you will be paying thru the NOSE on interest, etc...
Do me(correction: yourself) a favor; Sit down and think about anything/everything you can/could do RIGHT THIS MINUTE to generate income...
1. Sell your car? (take a bus, train, subway)
2. Maybe, you have a CD, stocks, IRA, 401k...Whatever??
3. Parents, Friends, Family, Anyone??
Figure out how much that $$ is....
4. Quit buying Shampoo and use Bar Soap?? Whatever, it takes...
Then, make a budget that you can actually live on....
Then, call your creditors... And, if these are OLD debts.. Ask, if they would be willing to settle for an amount??? (DON'T COMMIT YET...) As, in any Financial/Legal matter.. You want ALL the facts, right?
So, figure out which creditors can be paid off...Which, you will have to work out PAYMENT arrangements with, to get caught up...
AND, stick to your budget!
And, if I said anything you already knew, maybe someone else reading this can benefit...
The only thing in life we have control over is ourselves!
[addsig]
tcscrash,
Don'tDoBankruptcy..
GetThis2ndJOB...
I would go deliver for DominosPizza during their RushHours...
...You can double YOUR income for just several hours a night...
....and YouMightGet a Pizza or two (forFree) per week!!!
....as always,
GoodInvesting, Rocky
Hey Rock, I did deliver for Domino's Pizza about 12 years ago and working 4 hours a night I would make $25 (wages) and another $20 to $30 per night in tips. Plus they paid me for gas. It sounded like a good joke but actually it may be a good idea for our friend here. DO NOT FILE FOR BK. I have a background in collections and financing. Collectors like to push harder and harder to see where you will break. DON'T DO IT. The use of threats is against the law. I don't know what state you are in but some states are also pretty strict with collectors. See my profile and drop me an e-mail and I can give you some more advice but whatever you do DO NOT FILE BK. It will haunt you for a long ... long ... long time.
Quote:
I can't afford a payment over $20 a month to them. here's the catch--my car, apt, ins, and utilities aren't in my name. can i still verify that they are my expenses?
I'm a little confused...you say that all these things aren't in your name? Who's name are they in?
My advise is the same as those before. Sell the car (give it back to who owns it) cancel the insurance, get a second job you can walk too and pay your debts.
BK won't fix your real problems. You need to learn to budget you money and save for emergencies.
BTW, what's your degree in?
Don't file BK. I agree with every post. You sound like young, healthy, and intelligent person. Get a second job. Negotiate settlement and term with your creditors. You don't have to pay whole $8000. You may be able to get away with 60 to 70% of that. After getting a different job and/or 2nd job, go to consumer credit counseling, if you don't think you can fight this by yourself.
Absolutely! DONT DONT DONT file BK. I was stupid and filed BK on 18K and it followed me and followed me and followed me. It still haunts me!
Consumer Credit Counseling is an EXCELLENT idea. Find one of the non profit ones, not the for profit kind. Don't fall for one that wants you to make a personal loan to 'catch up.'
If you balloon won't float, Lighten your load!
I lived in my semi truck for a whole year to save up enough money to start my business. (Financing was NOT an option because of my BK.)
My wife and I lived on $100/wk when we were starting it. We had two junk cars and we ate a lot of pasta.
We lived in a 3 rm apt. with 3 kids (It had one large br and we all slept together.) It was esentially free because it was in the same bldg as our business. It was cold, drafty and noisy but we made do.
8K is not as much as it sounds like. If you work hard at it for a year, it'll be gone.
With 2 degrees, why can't you find a job?
Go to truck driving school. Schneider will put you through school for free. You won't get home very often but you won't need a place to live or a car. Work hard, drive hard, see the country, and PAY OFF THAT CRAPPY LITTLE DEBT!
You're not in as much trouble as you think. They don't have any debtors prison any more.
Good luck. I hope you take everyone's advice here to heart. If I can be of any other assistance to you, feel free to email me.
Sincerely,
Ronnie
File a Bankruptcy if you want to.
I'll be entirely honest. If you walked into my office, I would tell you to get lost - get another job and work with your creditors.
Trust me, you do not need a bankruptcy.
you can do it. you can turn it around yourself. Trust me.
-Matt
Good Luck
Remeber this rule always try to spend less than you make.
In addition to the advice about getting a second job delivering pizzas, I recommend checking out places like Best Buy or Circuit City (unless that's where you're already working ). If you have a degree and some work history, you can start at $9-$13/hour depending on the position. They're very flexible with scheduling because most of their employees are college students. Sears is also an option, I work there currently in electronics part-time while going to college. It's straight comission, but during the holiday shopping season (which starts around now), you can average $18/hour.
Of course, for any of those type of positions it helps to have knowledge of computers and electronics. But there's always a lot of training involved, and they pay you to do the training.
As a bonus, most of these big stores are on bus lines so you can even sell/give back your car if you needed to.