I need to do Ch 7 and I'm 23...need some advice

[albert88]

Hello everyone. Sorry for the length of this post, I just need some advice before I go see a lawyer and spend money...I read the FAQs and they have been very helpful.

Okay so here is my story, as short as possible:
I made good money for about 1 1/2 - 2 years as a loan officer. With the slow down of the real estate market, my income went down to almost nothing, and forced me to quit my job.

I had things to pay for...mortgage, auto payments, food, etc etc...so I buried myself into debt with my $21,000 unsecured line of credit from Wells Fargo, along with $11,000 on my AMX...and some less substantial debts with other cards (all below $3,500).

I've switched careers, but it will take at least another year until I can make enough money to even manage these payments. So far I'm still living on debt, and have another $8,000 in credit cards left.

My condo (no value) is now 3 months behind on payments and will go into foreclosure, but everything else is still on time (because I'm borrowing on debt, to pay debt).

Here are some things I need some advice on:
1. My bank account has my girlfriend as an authorized user...should I close that so she doesn't get affected?

2. My leased car will probably get repo'd with the BK right?

3. Can I use some of my credit I have left to arrange some things I will need to survive for a while? If my car is taken away I need to buy a new one...will this be a red light even after 90 days if I put the auto purchase on a credit card? (yes I'll buy a cheap car and put it in my gf name or something)

4. I have no assets and no income from working, my income was from borrowing on credit and I would get help from my father by monthly checks...

I don't want to break any rules or regulations by using my credit, but fact of the matter is I will _need_ a car to get back on track, along with some other essential things...any suggestions?

Just need some direction...this is a learning experience at the age of 23. Thanks everyone.

[emoney]

To be quite honest you have a mess on your hands, but not one large enough to file BK on. Income is your porblem as you have found out. I suggest a written budget and using a Dave Ramsey plan for to rebuild yourself.
regards,
emoney

[albert88]

To be quite honest you have a mess on your hands, but not one large enough to file BK on. Income is your porblem as you have found out. I suggest a written budget and using a Dave Ramsey plan for to rebuild yourself.
regards,
emoney

$35K of debt is impossible for me to keep up with. I'm going through foreclosure which is going to ruin my credit, so I'm not worried about the BK doing the damage...

I would like to start over while I'm young...I just need advice.

[dp1969]

You are your own judge of it but if you don't see an income change in the near future then...you might be postponing the inevitable. I wish I would have done this several years ago, instead of "robbing Peter to pay Paul".

Dave Ramsey, Steve Snyder, Suze Orman all want you to "buy" into the program and if I had money to invest into that...I wouldn't be on this forum, right?

[Runnin on empty]

Albert,

Sorry to hear it. Unfortunately, the oft-unscrupulous actions of big money hurts not only those directly in the line of fire, but has a nasty 'splash effect' as well.

On one hand I want to say that you're young enough that it might make sense to try and work something out with your creditors until you are able to find more stable employment. Remember, a BK will stay with you for years. At the very least, I would contact a local non-profit credit counselling place and just see what they say. Even if they can't help, they will probably have a few nuggets of wisdom.

On the other hand, like you pointed out, you are still young, and if you file now, there is a good chance that you can rebuild your fiscal life before too long. As dp1969 pointed out, the last thing you want to do is delay the inevitable. We did and it was probably the single dumbest thing I've done in a long time. Had we faced facts and done it when we first knew we were in over our heads, there wouldn't be a 2nd mortgage on our home that we need to deal with (reaffirming).

I'm not a lawyer, and I didn't stay at a Holiday Inn last night, ;) so I would suggest talking to both an attorney and a local non-profit credit counselling place.

1) I would switch banks no matter what, and get separate accounts. I don't want to sound harsh, but you aren't married yet, and too much (on top of everything else) can go wrong. This is not a comment on your girlfriend, I just know too many people who have personally been burned. More often than not, it was the lowlife boyfriend though.

2) You can reaffirm the car and keep it if you want. My wife did that with hers. It is a secured property, so it is your choice, within reason. If you're driving a BMW 5 series, the Trustee will probably raise an eyebrow. If you're driving a 'normal' car, then you should be fine.

3) Consult a lawyer on that, but I'd advise against it. If you stop paying on your unsecured debts, pay only the secureds and essentials (condo/car/utilities/food/ect), you'll be surprised how far you can stretch the dollar.

4) Again, contact a lawyer (or three).

IMO, sit down and have a real heart-to-heart and head-to-head with yourself and decide what is best for your situation. Once you do, you will be better equipped to make the decisions that need to be made.

Regardless of what happens, keep your head up. I'm sorry this has happened to you, but at least it did when you were still young, unmarried and childless. You have a chance to turn it all around. Not that the rest of us don't, but it is much more difficult with all the trappings of being an older adult with a family, ect.

Good luck and keep us posted!

[albert88]

You are your own judge of it but if you don't see an income change in the near future then...you might be postponing the inevitable. I wish I would have done this several years ago, instead of "robbing Peter to pay Paul".

Dave Ramsey, Steve Snyder, Suze Orman all want you to "buy" into the program and if I had money to invest into that...I wouldn't be on this forum, right?

You took the words out of my mouth. I won't be able to pay back this debt, and it was all just bad decisions at a young age. So can I buy a car in someone else's name on my credit before I do the BK?

[albert88]

Albert,

Sorry to hear it. Unfortunately, the oft-unscrupulous actions of big money hurts not only those directly in the line of fire, but has a nasty 'splash effect' as well.

On one hand I want to say that you're young enough that it might make sense to try and work something out with your creditors until you are able to find more stable employment. Remember, a BK will stay with you for years. At the very least, I would contact a local non-profit credit counselling place and just see what they say. Even if they can't help, they will probably have a few nuggets of wisdom.

On the other hand, like you pointed out, you are still young, and if you file now, there is a good chance that you can rebuild your fiscal life before too long. As dp1969 pointed out, the last thing you want to do is delay the inevitable. We did and it was probably the single dumbest thing I've done in a long time. Had we faced facts and done it when we first knew we were in over our heads, there wouldn't be a 2nd mortgage on our home that we need to deal with (reaffirming).

I'm not a lawyer, and I didn't stay at a Holiday Inn last night, ;) so I would suggest talking to both an attorney and a local non-profit credit counselling place.

1) I would switch banks no matter what, and get separate accounts. I don't want to sound harsh, but you aren't married yet, and too much (on top of everything else) can go wrong. This is not a comment on your girlfriend, I just know too many people who have personally been burned. More often than not, it was the lowlife boyfriend though.

2) You can reaffirm the car and keep it if you want. My wife did that with hers. It is a secured property, so it is your choice, within reason. If you're driving a BMW 5 series, the Trustee will probably raise an eyebrow. If you're driving a 'normal' car, then you should be fine.

3) Consult a lawyer on that, but I'd advise against it. If you stop paying on your unsecured debts, pay only the secureds and essentials (condo/car/utilities/food/ect), you'll be surprised how far you can stretch the dollar.

4) Again, contact a lawyer (or three).

IMO, sit down and have a real heart-to-heart and head-to-head with yourself and decide what is best for your situation. Once you do, you will be better equipped to make the decisions that need to be made.

Regardless of what happens, keep your head up. I'm sorry this has happened to you, but at least it did when you were still young, unmarried and childless. You have a chance to turn it all around. Not that the rest of us don't, but it is much more difficult with all the trappings of being an older adult with a family, ect.

Good luck and keep us posted!

Thank you so much for summing it all up. Maybe I can try to keep the car and tell them that it's not even me paying for it.

Thanks again.

[albert88]

Guys...one more question. What if I pay some payments on my car with my CC? I seriously need to save as much money as possible for a lawyer.

[dp1969]

You took the words out of my mouth. I won't be able to pay back this debt, and it was all just bad decisions at a young age. So can I buy a car in someone else's name on my credit before I do the BK?

You might check around the forum, Albert, about buying a car before the BK. I, believe, I've seen it done...being a necessity. Don't quote me, though. We are reaffirming ours (no late payments).
The things the trustee looks for (CC charges) is luxury items that have been purchased. Many people have been using the cc's to make payments on utilities, car payments, mortgages, etc. Shouldn't be a red flag.

[Minnymouth]

If I understand the poster correctly -- he wants to purchase a another car - on a credit card - in someone else's name - before he files bankruptcy..........

Also if you will notice, he has no income, he lives off credit cards and help from his dad.....

Hello fraud case.....................

You need to do some serious reading about filing bankruptcy and what you can do and can't do................before you file....

[albert88]

I don't want to do any kind of fraud, which is why I'm here asking for advice before I go make a fool of myself in front of an attorney. I would like to keep the car if I can.

[dp1969]

I don't want to do any kind of fraud, which is why I'm here asking for advice before I go make a fool of myself in front of an attorney. I would like to keep the car if I can.

Albert, you are not going to be a fool when seeing the advise of an attorney--which is what you should do before seeking advise here. I "lurked" on this site then spoke to an attorney. Any lawyer HAS to give you the best advise for your given situation. If they are not working to protect your assets, then they are being unethical!
Never mind your feelings...they are justified. I felt a "little low" when walking into the lawyer for the 1st time but after I spoke with him, thoroughly, I felt relieved. Only he can give you the best advice--if he feels you shouldn't file, then he will (and should) let you know. You might be better off with a Chapter 13 (then it will only be with you for 8 yrs.). Please seek that advise...it will ease you mind. Good Luck and keep us posted!

[keepmine]

Your priority is a job-any job and get some $$$'s rolling in. The debt hole is deep enough-time to stop digging. You have to be able to support yourself post bk or, the 2nd chance is just wasted.
Why this fasination of putting a car in someone elses name? You are allowed to own a car post bk. Either, have the resourses to get current on your current loan before filing or, finance a cheap car on your own. Don't involve others in your finanvial problems.

[dp1969]

Let's remember people, he's here for advise...NOT A BASHING!!

If his words sound desperate, then give sound advise. Don't belittle his way of thinking...he's in a panic. Some don't think rationally at these times while others do.

[emoney]

Dave Ramsey's plan is free and avaiable on the AM radio five days per week. If you want to attend live events of buy books of course there are charges.
regards,
emoney