So....where do I go? (yes, chapter 7-related question!)

[bg23]

Hi everyone!

So I finally got all my ducks in a row and have every last bill listed on my creditor matrix and have all my paperwork done (filing pro-se, with the assistance of my friend, who is a paralegal). I anticipate being able to file in the upcoming week- just waiting on a paycheck so I can pay the $300!

My reason for filing- a repo'd car back in 2008 (it died on the highway pouring oil out of the engine, i left it there on the side of the road (FAR from any traffic), in the 3 hours I took to go get help, they towed the car to a gas station and it was repo'd from there! I was not even 1 payment behind! damn they work fast!) - that and numerous small credit cards (<1000 each) and payday loans got me 35k in the hole total. I also have a child with a disability so just everyday life ended up costing me more....add that with a low salary and high cost of living in the DC metro (rent alone was 1100- daycare another 500- take home pay was 2000- do the math!)

INCOME: Everything has been happening so fast for me- I managed to get a new full-time job in the same field I work in (less salary but the shorter commute and AWESOME benefits make up for it- 3 weeks vacation from day one!). I was only out of work for <2 months. My previous job I held for 5 years. My income is stable (albeit low).

Now- on to fix my living situation- and I've hit a brick wall

HOUSING BACKGROUND: I currently live with my parents. I did have an eviction back on my report from 2007 where I owe them a little over $2,500 (I dont dispute that- it was my apartment and I cut out 2 months early from the lease as my ex was living there too and it was him or me so I went! There were no damages to the apartment- the charge is simply for back rent. I refuse to pay it as it was my ex's doing. He was on the lease too so he is being hurt by this too, creditwise). Other than that NO other evictions.

So last week, I went to go apply at XYZ apartments. On their online application (realty data trust) I got an INSTANT approval. So I walk in with my $125 holding fee happy to move in next month- and they tell me they can't give me the apartment until I pay off the old housing debt!!!

BUT if i manage to take my tax return (expecting ~2k back) and pay that off, the OTHER creditors will see this payment and come running- plus doesn't that look bad since I am about to file BK? Wont that be a prefferential payment? It will make it look like if i have the money to pay the apartment here comes everyone else trying to sue me! And they might not let my BK go through since I was able to come up with the money to pay said apartment!

I did get from XYZ management that my FICO was actually a 600 (how that happened still I dont know! Last time I checked it was a 559!) so in terms of raw SCORE i qualified but when they went digging and actually read the credit report itself (equifax) thats how they found me out.

On a whim, I applied at ABC management too for an apartment- and was declined for the exact same reason.

I did find a place that would take me. Granted its not in the best of neighborhoods, but we will manage. Problem is- to get in I would have to put up first last AND security- and with rent being $1100/month- that means I would have to come up with $3,300 JUST to move in- AND get my lights turned on and such too- I only take home MAYBE $1300/paycheck!!! Then have to pay another 1100 rent next month!!! Sure I'll get 2200 or so back when I leave- but damn!!! I can do this- just take the tax return and add a paycheck...just want to make sure this is the best option.

I also called around to other properties, and they all told me the same thing "as long as you owe another complex on your report we cant approve you". So I will no longer waste $50 credit check fees.

I asked "well what about those fresh out of BK?"- most said as long as it was DISCHARGED I will qualify, but might have to pay a LITTLE more deposit (like 500, not 2 months rent!)

I am afraid if i pay the old complex off then file it will create a problem with my BK filing.

But If i file for BK now, it will be 90 days until it is discharged. I dont know if i can take it here that long (already been here since May 11, was only supposed to be 90 days, here it is new years and I am still here!)- to add insult to injury I AM paying my mother $600/mo to stay with her when I could pay 300 more and have an apartment.

I could pay the other people willing to take me $3k- but that is a LOT of money to tie up considering i dont make much in the first place. I'd rather take that money and fix my car (it needs new brakes BADLY). Thats what I planned on doing with the refund anyways. 1/2 on a new place to live, 1/2 to fix my car. I had NO ideas of blowing the money anywhere.

Also- I did honestly try living with roommates (who flaked) and living farther out (went to Fredericksburg where rent was $700 sublletting through a friend- but by the time I paid $20/day in gas to get from there back to the Fairfax area and back for work every day that $400 in gas+700 rent= might as well stay in fairfax and pay 1100 and save the TIME and SANITY sitting in that 95 south traffic every night...) so "just move to a cheaper place" isn't an option for me right now. Plus I have a child- I will not be staying in SE DC just to save $400 a month in rent but have to fear for our safety and fear my car will be there in the morning when I wake up (which would drive UP the insurance premiums!).

Sorry for the essay, but what do you all advise I do regarding my living situation? File now or wait and keep trying other properties? Or pay the 3k+ and move there and stay put until its discharged then go elsewhere?

Lesson learned- as I have been for the past year- CASH ONLY. I've been sticking my head in the sand for too long and now I am ready to act and get this BK rolling! I NEED to to keep my job-they will be checking credit soon!

[Drazil65]

Wow I am so sorry for your situation with your mother (seems like she could give you a break on the rent with a deadline for moving maybe). If I were you I think I would stick it out until your discharge and then try the apartments again. I have to ask though, have you tried a private owner to rent from? Like someone that has an apartment in their house or a duplex or something? I know many people that have had a much easier time with a private owner, this is a very expensive area for sure, good luck!

[lotsahats]

If it were me, I'd file BK now, and tough out the next 90 days, until the discharge.

[basketsbears]

(((Hugs))) If it were me,I would file asap, then move after discharge. 90 days may seem like forever, but it will be there before you know it.

[bg23]

Good Morning all!

Welp- I see the consensus is to file and worry about moving later. After another heated exchange this morning (she was upset a creditor called her private line and is now b*tching and whining about why my bills are affecting her life)- I told her I have NEVER given her number to ANY creditor and showed her a simple google search of my name shows we're related and I noticed it was easy to find her so-called private # on the internet- so I explained just that to her. She calmed down a little but tried to accuse me of putting the # on the internet! (get a visual of me facepalming right now LOL). So yes- my paycheck cleared today so I am headed right to the Alexandria Courthouse next week to file.

Not to mention- the water pump went kaput this morning on my car I am driving now (paid for)- well luckily this will be a 4 hour driveway job, I have a brand new pump chilling in the trunk of the car right now, just need to tow her home and order a gasket (I do have AAA, thank God!). Noticed a small puddle of antifreeze this morning, quickly checked my hoses and everything looked ok, added 5050 antifreeze/water until it was full, drove 15 miles here to work (all highway)- all the antifreeze is now gone. Dummy light never came on, the engine was not steaming or anything, but the bottom 1/2 of the engine was wet and I could see the water weeping out the pump when I parked it. Good thing I shut it down before it overheated- there was still antifreeze in the radiator so that leaves the water pump as the problem.


Back on topic, yes I will go file right now- and when this is all over, I'll be getting a new apartment AND a new-to-me car (like a 5-8k car, keeping it simple!) and going cash only from here on out. Lesson learned about credit. If my credit was good, I'd have a credit card in my hand and could whip it out right now, call AAA right now, and have the car towed straight to the shop and it would probably be done after work today and I could be driving home. but since my credit is so sh*tty right now, I have to do this the hard way and wait until its time for me to get off work, call AAA to tow me and the car home, and go out here in freezing temps and slap this water pump on. Oh yes, my lesson is REALLY learned now. Good credit is a MUST, especially in emergencies- such as this one.

Well- now I will logn on and take my pre-filing course!

Thanks everyone and have a happy New Year!!!

[bcohen]

You do not need to pay off the old eviction judgement if you are planning to file Chapter 7 bankruptcy. It is true that most apartment complexes which are owned or managed by companies will not approve you while there is an unpaid balance showing on your credit report however the bankruptcy will take care of that!

Once you have discharged the debt in bankruptcy (and this is treated like any other unsecured debt), you can file a motion to set aside the judgement in the court where is was originally granted, on the grounds that the underlying debt was discharged in bankruptcy. At that point, your credit reports will show a zero balance owing, so other apartment complexes will approve you.

So my advice is to save your money for paying for necessary living expenses, use your exemptions to cover the tax return (assuming your state lets you exempt that much money), and stay in your parents' house until the discharge is granted. Then you can wipe out this judgement (it will still show on your credit report, but as "resolved through bankruptcy" and with a zero balance owing) and you will not have to pay the money back.