* Should I File ?

[*aaron*]

I'm 28 and currently seperated from my wife. I have had 3 auto reposessions in my short credit history ( about $40,000 ), College loans ( $25,000 in private loans, about $30,000 in Federal sub & unsub loans ), also about $10,000 in debt to various creditors ( collections, credit cards, & other companies ). All of this debt is under my name only, and 90% was incurred before I was married.

I have $0 dollars in assets ( if you don't count the clothes on my back ).

I have a decent paying job ( about $40,000 a year / about $1200 net each bi-weekly check )

Currently going through wage garnishment of 25% making my take home about $900.

My current living expenses:

$750 monthly rent, although not technically a rent payment since I just pay to help out parents pay for mortgage and there is no rent agreement

$600 school loan payments

$450 food

$250 gas to drive parents car to work

Since the wage garnishment began about 2 months ago, I've been finding it difficult to pay my bills on time and also to support myself.

What should I do? Is Bankruptcy right for me? My credit is already "shot" so would a bankruptcy help me in the future if I just start all over?

If I do file, should I file 7 or 13?

Thanks!

Let me know if you need any additional information.

[*aaron*]

bump . . .

Should I file 7 or 13?

[JRScott]

Well I see one main trouble you have about 55k of debt that is not dischargeable (the student loans whether private or government sponsored). That leaves about 40k that is dischargeable.

What is the garnishment for?
What state do you live in?

[JollyGG]

I guess the first thing I would do is schedule the prebankruptcy filing class.
Just because you attend the class does not mean you have to file and the class will help you get organized, spell out your options, and help you put a budget together, explain chapter 13 and chapter 7.

I just don't have enough information to advise you either way. I see what seems to be some expenses on the high side for a single person, but I also see alot of expenses missing in your list. You make a decent income for a single guy, but that really depends on the state you live in.

Basically, you need to sit down and make a list of absolutely every single expense you have in a given month. If you go to the "links for members" post under the general bankruptcy section there are some tools to help you remember all those expenses. Don't forget to include those expenses that don't happen every month and average them out. For example car insurance, tax title and licence, doctors co-pays, etc.

Then you need to list out your income.

Income - expenses. Is there enough to pay everything? Can you increase income? Can you cut expenses?

Once you have figured out how to pay all your daily living expenses and you know how much is left at the end of the month list out your debts. With the amount left at the end of each month can you pay that debt off in 5 years. If not, can you decrease expenses, or increase income enough to reasonably do so?
If the answer is no then mabey it is time to start investigating bankruptcy a little more seriously.

[*aaron*]

Well I see one main trouble you have about 55k of debt that is not dischargeable (the student loans whether private or government sponsored). That leaves about 40k that is dischargeable.

What is the garnishment for?
What state do you live in?

The garnishment is for the 1st car repo back in 2000.
I live in CA.

I'm aware that the student loans can't be discharged, and I'm also hoping that I can include them in my monthly expenses.