After a series of recent, major financial setbacks, I'm wondering if I should file Chapter 7 bankruptcy. Well, let me rephrase that. I am thinking I definitely should but maybe that wouldn't be the best path as of now. I'm looking to get a little advice and insight into what I should be looking into or not. I went to a lawyer for a "free consultation" (a BK mill for all I know) and really didn't get any answers to my questions and didn't get a real opportunity to even tell my story which is why I'm here. He didn't really care to hear about my particulars and I'm trying to see what's what. I'd really like your help.
Years ago, when I was in my very early twenties, I got into major, major credit card debt due to needing things for school and being impetuous and stupid. All those old accounts were charged off and I've never had credit cards since that time (this is probably going on about seven years now). I didn't pay the collection agencies that ended up with those accounts and moved for work out-of-state. I moved to an expensive state but I had a decent job that made living there easier--with a roommate.
As I said, I never got another card after those five or so and paid cash for everything. I had things on track financially for the most part (household bills and charge-offs notwithstanding) but then lost my job in early 2007 right after I got my first new car at the end of 2006. I could not afford the car BEFORE purchase, for sure, if it wasn't for the car allowance and to keep my job I HAD to get it. I was basically using almost all my money on living expenses at that time. Rent, utilities, insurance, gas, food, car payment. Right after losing my job, believe it or not, the second clutch went up in the car during the middle of that year (the first went at 4,000 miles for some reason and was covered under the warranty) which destroyed my transmission. I had it placed in the shop and I never had the money to get it out after the repairs and the company that repossessed it actually ended up paying the four grand to get it out of the shop. I am fairly sure they are going after me because they tried to put a lien on my parents' house (!) because one of my parents and I share similar names! The lawyer at least told me that was easy to remedy because it was provable that it's not them who owes the money.
After losing my job, my roommate moved out suddenly leaving me with an exorbitant rent which I couldn't afford and no time to find another roomie. I ended up getting evicted and quickly moving in with an ex-boyfriend but this wasn't before the landlord took me to court and got a judgment against me for back rent. I also owe the two banks where I banked where I lived each at least $1,000 after overdrawing (although not on purpose at all!). I also stopped being able to afford my cell phone which went to collections owing several hundred dollars.
In addition to that, my student loan payments lapsed heavily (haven't paid a dime since February of 2007) in most of 2007 and all of 2008; I am very much in default. I fought my employer to get unemployment because they lied about why they fired me ( I had proof to discredit everything they said) but the unemployment ran out in early 2008. I had to sell almost everything I owned and lived with friends after my ex-boyfriend who I lived with moved back to Denmark, trying to find enough work to support myself, until late 2008 when that same ex-boyfriend actually bought me plane ticket to fly back to live with parents which I tried not to do because of my pride. After I moved back in with them, I got the real support I needed to find a non-back breaking job (June 2009) but not until after working THREE terrible jobs simultaneously just to be able to pull my own weight. Oddly enough, I couldn't find real work until I moved back to the city I left because good-paying jobs were scarce.
Well, now I'm back on my feet, which is good, but I received a letter in the mail stating that the bank that gave me the loan for the car is suing me in a court one thousand miles away in the state I used to live and the IRS sent me a letter saying they want the back taxes I owe plus interest or else. I owe the finance company for the car about $10,000 and IRS considerably less but more than I can pay at one time. I feel like I've had the wind knocked out of me!
I am setting up payment with the IRS and trying to work out something with the student loan people, Allied Interstate. I am unsure if student loan will be something I can catch up on right now because they want a ridiculous amount of money that I simply cannot afford right now and I know I can't include that in the bankruptcy. Can that be modified in some way so I can begin to pay them back but still have money to survive? I told them my situation but they still want the kind of money I'm unable to pay and still make my expenses.
But should I file bankruptcy to start with a clean slate and include everything else like the car, cell phone account, rent judgment, the banks I owe overdraft fees to and the old credit card accounts? Or should I just do the most recent accounts like the car, banks, cell phone and landlord judgment? And if I do file bankruptcy, I was thinking of using one of those full-service filing sites to do my paperwork so I can just submit it because I have absolutely nothing of value at this point and I can at least borrow enough to afford that. AT this point, I just want to be able to live without getting letters in the mail like I used to when I lived with parents and numerous phone calls. I'm poor and I don't think I'll be anything but that for a long time to come.
But at the very least, I want to be able to poor in peace! Any wisdom and guidance is not only appreciated, it's necessary.
Years ago, when I was in my very early twenties, I got into major, major credit card debt due to needing things for school and being impetuous and stupid. All those old accounts were charged off and I've never had credit cards since that time (this is probably going on about seven years now). I didn't pay the collection agencies that ended up with those accounts and moved for work out-of-state. I moved to an expensive state but I had a decent job that made living there easier--with a roommate.
As I said, I never got another card after those five or so and paid cash for everything. I had things on track financially for the most part (household bills and charge-offs notwithstanding) but then lost my job in early 2007 right after I got my first new car at the end of 2006. I could not afford the car BEFORE purchase, for sure, if it wasn't for the car allowance and to keep my job I HAD to get it. I was basically using almost all my money on living expenses at that time. Rent, utilities, insurance, gas, food, car payment. Right after losing my job, believe it or not, the second clutch went up in the car during the middle of that year (the first went at 4,000 miles for some reason and was covered under the warranty) which destroyed my transmission. I had it placed in the shop and I never had the money to get it out after the repairs and the company that repossessed it actually ended up paying the four grand to get it out of the shop. I am fairly sure they are going after me because they tried to put a lien on my parents' house (!) because one of my parents and I share similar names! The lawyer at least told me that was easy to remedy because it was provable that it's not them who owes the money.
After losing my job, my roommate moved out suddenly leaving me with an exorbitant rent which I couldn't afford and no time to find another roomie. I ended up getting evicted and quickly moving in with an ex-boyfriend but this wasn't before the landlord took me to court and got a judgment against me for back rent. I also owe the two banks where I banked where I lived each at least $1,000 after overdrawing (although not on purpose at all!). I also stopped being able to afford my cell phone which went to collections owing several hundred dollars.
In addition to that, my student loan payments lapsed heavily (haven't paid a dime since February of 2007) in most of 2007 and all of 2008; I am very much in default. I fought my employer to get unemployment because they lied about why they fired me ( I had proof to discredit everything they said) but the unemployment ran out in early 2008. I had to sell almost everything I owned and lived with friends after my ex-boyfriend who I lived with moved back to Denmark, trying to find enough work to support myself, until late 2008 when that same ex-boyfriend actually bought me plane ticket to fly back to live with parents which I tried not to do because of my pride. After I moved back in with them, I got the real support I needed to find a non-back breaking job (June 2009) but not until after working THREE terrible jobs simultaneously just to be able to pull my own weight. Oddly enough, I couldn't find real work until I moved back to the city I left because good-paying jobs were scarce.
Well, now I'm back on my feet, which is good, but I received a letter in the mail stating that the bank that gave me the loan for the car is suing me in a court one thousand miles away in the state I used to live and the IRS sent me a letter saying they want the back taxes I owe plus interest or else. I owe the finance company for the car about $10,000 and IRS considerably less but more than I can pay at one time. I feel like I've had the wind knocked out of me!
I am setting up payment with the IRS and trying to work out something with the student loan people, Allied Interstate. I am unsure if student loan will be something I can catch up on right now because they want a ridiculous amount of money that I simply cannot afford right now and I know I can't include that in the bankruptcy. Can that be modified in some way so I can begin to pay them back but still have money to survive? I told them my situation but they still want the kind of money I'm unable to pay and still make my expenses.
But should I file bankruptcy to start with a clean slate and include everything else like the car, cell phone account, rent judgment, the banks I owe overdraft fees to and the old credit card accounts? Or should I just do the most recent accounts like the car, banks, cell phone and landlord judgment? And if I do file bankruptcy, I was thinking of using one of those full-service filing sites to do my paperwork so I can just submit it because I have absolutely nothing of value at this point and I can at least borrow enough to afford that. AT this point, I just want to be able to live without getting letters in the mail like I used to when I lived with parents and numerous phone calls. I'm poor and I don't think I'll be anything but that for a long time to come.
But at the very least, I want to be able to poor in peace! Any wisdom and guidance is not only appreciated, it's necessary.
Also, after 25 years the loan balance is forgiven, ten years if you work in the public sector. Pretty sweet deal.
That's not good! That sounds like a trap. LOL
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