New here, I have a few bankruptcy questions..

[PamLZ]

Hello, I am 23 years old. And unfortunately I find myself in a lot of financial trouble. I went credit happy when I was a teen and as a result I had to start using credit cards just to get by. Now, I am unemployed, I have not been able to pay certain credit cards because unemployment insurance doesn't give me enough every month.

I'm have debt in the form of credit cards in the amount of $14,600.
I have student loans totaling $8,000.

Over the last year and a half, I had an income of $17,000 after taxes. I took the means test and I qualify for a Chapter 7.

One of my first questions is: I have a 1999 Jeep Cherokee, titled in my parents’ name. It has been that way since it was purchased 5 years ago. I have made 70% of the payments on it. When I was having very hard financial times a couple years ago, they took over the payments for about 7 months. The payment on it has always been $286 a month. Is there anyway the Trustee can take the Jeep away from my parents/me because I have made most of the payments on it? Also, I will be done making payments on it next Sept. 2007. And therefore it will be put in my name. Can they seize it then? Even after the bankruptcy would be discharged by then?


2nd question: I have a CC with my credit union. When I file, will they empty my checking to pay for that card? I don't have a lot. Likely averages $30-$50 monthly. But, I need every cent.

I am mostly concern about the Jeep. I have kept it in good condition since it was purchased. And about 30% of my CC debt is because of repairs & maintenance to it.

I've stopped paying my bills as of this month to build up the filing fee and the attorney fee, which all totals $1100. I hardly own anything of worth. I'd say that my computer & accessories is worth about $400 total. And I read in the Michigan exemptions that I am allowed a computer + accessories up to $525. So I think I am covered there. Other than that, if the trustee wants to try and sell an 8 year old TV for $20, then all the power to him. I want to know what items of little value less than $500, has the Trustee taken from you?

Thanks for reading and letting me ramble. I look forward to your answers.

- Pam

[BassBoy]

The Jeep is titled to your parents......it belongs to them. Next, $14,600 is not a lot to file bankruptcy over (student loans may not be dischargeable), besides, if a life altering ordeal happens in a few years from now and the debt load is far greater than it is today, you can't file BK for another few years.....and the damage could be far greater. With the amount of debt you have today, there may be other ways for you to be able to work it out.

[PamLZ]

Thanks for replying, I have decided to never use credit ever again. I don't forsee ever using a CC for anything. If I were to file for banruptcy, the money I would have left over every month after my car payment would be enough to have to save for an emergency fund for future use.

My monthy debts (CC and my car, when I was working, is about $900 a month. I have 12 credit cards. 3 are only $10 minimums, 2 want $80 a month each, the others are at $50. Right now, I cannot make the payments on 4 of them. The others, I'm barely getting by. With my car payment, it's just too much. I do plan on paying them back, smallest debt to highest. But, the rate at which they're going, I'll never pay them off just paying the minimums. I don't have hardly anything left over for my neccessities of life. Even when I was working I only had about $150 left over for food and gasoline for the entire month.

Yeah, I know. It's a small amount. But to a person who has never made over $18,000 a year, it's a lot of debt.

Thanks again.

[BassBoy]

You make some good points here PamLZ, and yes, you could very easily save the money for an emergency fund.

Have you tried discussing these matters with the creditors themselves? Sometimes they can be understanding and may be willing to work something out. Belive me, they'd rather get paid from you instead of you filing BK, so they may bend a little.

[PamLZ]

I called all the $50 and up ones. Most of them told me that I have to be late one month in order to receive any sort of help. I told them my situation, being umemployed, and how much I could give them every month, and they said it wasn't good enough. One of the $80 CC, i had to stop paying when I was unexpectantly laid off, currently has a $600+ minimum payment. (Because of all the $39 late fees and a $39 over limit fees + $120 Finance charges that have accrued every month since then.) I had to stop paying the other $80 CC too, and that has a similar $500 minimum payment.

I have thought long and hard about this. I don't want to go into bankruptcy. I just don't see an end in sight if I don't.

[BassBoy]

If you have exhausted all of options, then you've got some tough decisions to make then. It's a tough decision, but in teh end, if the stress and sleepless are over, then it can be well worth the leap.

Have you consulted with any attorneys yet? The consultations are free and it can give you a lot to think about in order to make a more informed decision...so...it couldn'r hurt to talk with a few.

[anonymuse]

You are in a situation where a debt management plan might work. You'll need credit counseling anyone to declare bk, so go see a government approved agency to check out your options. If you don't have the money (usually about 35-50), you can ask them to waive the fee.

[PamLZ]

Yeah, I spoke to a couple. I've already found one I like. He answered a few of my questions over the phone, which was really nice.

Thanks so much for your help...

[FilingOnMyOwn]

Unless your credit cards have jacked you up to high interest rates, I personally don't think you should file. You'd only be discharging 60% of your total debt, barely over half, and still be responsible for the rest. Goto work and pay it, or continue school and don't worry about it.

[CATCHMEIFYOUCAN]

Filed Bk at age 25

Just a note, I filed Bk at age 25, on about 25g's .. but I didn't have student loans and secured cc's .. well except for a car payment in which I had several months left to go (I was able to keep my car) .. I had filed for Chapter 7 .. and of course way back than .. it was a piece of cake .. But when I did it was a great relief .. now I'm 38 and back into Bk (but a 13) .. Just be careful what you decide and if Bk is an option for you - you will feel a sense of relief whether it be a 7 or a 13 .. I worked my butt of afterwards, 2-3 jobs just to make a living (but I'm a workaholic) and still am to this day .. Life can be great after Bk .. I just fell in a bad habit the past 2 years, so I'm paying the consequences ..

Be careful and best of luck ! Catchmeifyoucan

[bkadv]

Keep in mind that BK is not a pleasant experience. It can have lasting effects for years to come. Your credit score will have to be rebuilt not to mention the sleepless nights and social trauma associated with the entire process. Think about it and weigh the pros and cons before you file.

[CATCHMEIFYOUCAN]

Stressful Now

Keep in mind that BK is not a pleasant experience. It can have lasting effects for years to come. Your credit score will have to be rebuilt not to mention the sleepless nights and social trauma associated with the entire process. Think about it and weigh the pros and cons before you file.

When I was younger it was like "WHOOPIE, no credit bills!" Now that I'm older it seems more stressful. I guess I didn't think about the effect it had on me back in the day, like it does now. After my first Bk, I was getting credit cards left and right, $10,000 limits overtime and my score was skyrocketing. But now. Hmmm, we won't discuss, we all know.

Best Wishes ! Catchmefyoucan