Should I file now or wait?

[yunnie]

I been thinking about filing bankruptcy for months now. Pretty much what happen was I screwed up in college and went into debt with my CC and now unemployed and have no assets.

In Nov one of my CC decided to sue me. I went to legal aid class that helps when youre being sued and asked the lawyers there if I should just file bankruptcy. They told me since I was uncollectable there was no point and to just finish the case and wait for a wage garnishment. To be honest, I dont want to go to court. I cant pay it no matter what so why wait. I then asked the legal aid Bankruptcy team if they help me fill out the forms so I could file MYSELF. But I guess they thought i wanted them to do it for me, and said no since I'm uncollectable.

I am going to file myself, but the question now is should I want till I get that judgement against me or file now before the trial date?
Also, if I'm being sued by a CC in one state, can I file bankruptcy in another state?

[justbroke]

Never wait for a judgment, unless you need the time for purposes of the Bankruptcy lookback. Remember, a Chapter 7 is a powerful tool that can only be used once every 8 years (with limited exceptions if you filed a Chapter 13 under certain parameters).

You can file Bankruptcy in any state and all "dischargeable" debt, even some international debt, is discharged by the bankruptcy.

[tcreegan]

Hi yunnie,

To get a good idea of what filing a BK is all about, get the NOLO book www.nolo.com ...basically a step-by-step guide to filing BK.

Before you file for BK, you have to take a credit counseling class, and that is another place to get a lot of questions answered. Talk to the legal aid folks, you want the HUD-approved, nonprofit credit counseling, face-to-face w/ a sliding scale or no fee for poor folks.

Good luck to you, and welcome aboard!

Tom in Colo

[chicagoannie]

Bankruptcy is a huge decision that will impact your life for quite a while. How much in debt are you? Is it only 1 or 2 credit cards?

[SunshineGal]

If your unemployed and have no assets than I would NOT rush to file. Even if the judgment is granted, there isn't anything to collect. Further, what happens if you fall and break your leg? In my opinion, you're way better off waiting until you have a job, a place to live and health insurance. Then file if you still need to but at least you'll have a chance at a fresh start.

[debtprison]

If your unemployed and have no assets than I would NOT rush to file. Even if the judgment is granted, there isn't anything to collect. Further, what happens if you fall and break your leg? In my opinion, you're way better off waiting until you have a job, a place to live and health insurance. Then file if you still need to but at least you'll have a chance at a fresh start.

I would tend to agree with this. Sometimes things seem scary and we do things out of fear which later on we decide we should not have done. If you don't have a job and if you have no big assets then it's unlikely they will get anything from you in the near future. I'm surprised they are suing you at all.

The advice to consider what you are doing is spot on. You basically have one shot and you won't get another one for 8 years. If you have to use it, make it count. Even if they do get a judgment, consider what happens to it when you file a C7: http://www.ehow.com/facts_4968428_wi...-judgment.html

My hunch is that if legal aid is telling you not to do it then they have good reason to give you that advice. Maybe you can share more details here and more people will double check that and offer their opinions.

[yunnie]

I'm not worried about a place to live and health insurance because I have those two things.
My debt isnt a lot compared to people who owned houses and all, but I have a massive student loan debt as well. Which I cant and wont add to bankruptcy due to Co-signers.
I dont plan on owning a house at all or buying anything that would need a loan. I really just dont want to go to court and have a judgment out against me. yeah, I was surprised when I found out I was being sued.

Legal Aid didnt say not to file bankruptcy, all they said was they cant take my case and file for me because I'm uncollectable and they dont have the resources to help everyone.

[debtprison]

I'm not worried about a place to live and health insurance because I have those two things.
My debt isnt a lot compared to people who owned houses and all, but I have a massive student loan debt as well. Which I cant and wont add to bankruptcy due to Co-signers.
I dont plan on owning a house at all or buying anything that would need a loan. I really just dont want to go to court and have a judgment out against me. yeah, I was surprised when I found out I was being sued.

Legal Aid didnt say not to file bankruptcy, all they said was they cant take my case and file for me because I'm uncollectable and they dont have the resources to help everyone.

Hello. Well you sound pretty young and remind me of myself long ago. I can't tell you what to do but it seems to me that you don't know a lot about how BK and collections work now. Nothing wrong with that but I would definitely try to learn more and think very hard before deciding. I made a mistake by filing BK many years ago in my early 20's. A lot of it was that I was just scared of being sued as you are. It was a mistake because I would have been better off waiting a few years so that I could eliminate some other tax debt. But I was young and didn't know much about it though I did a decent job otherwise with a successful pro se C7.

About student loans those are very rarely ever discharged now with very few exceptions. So even if you did decide to try to get them discharged it probably isn't open to you. You might want to look into the IBR (Income Based Repayment) option recently mandated by the government. If your income is low enough you pay $0 and I believe if you go 25 years like this the debt is erased (but look into it more yourself to be sure). All you need to do is basically submit your tax return to the lender each year along with the proper form. Be aware that some will play games to try to trick you from using it because it's such a good deal for you and a bad one for them!

Anyway keep your chin up and don't be too scared by things or let them force you into something which is a bad move. I'd still suggest giving more information out so that some people can help you more. There are some very knowledgeable and experienced people who frequent the forums and they could save you from a mistake or two. Best of luck!

[tcreegan]

Hi again yunnie,

Did you get the NOLO book yet?

Student loans aren't going to be discharged, cosigner or no cosigner...welcome to indentured servitude.

Tom in Colo