filing chap 7. 26 years old.

[Archaic2021]

I am 26 and from Alabama. I have worked since I was 16 and always put forth my best..but lately I have fallen into a land slide. I've worked in the coal Inudustry for the last 7 years. Making descent money..not great but descent. I own my own mobile home that is payed for and the land. I got into a little bit of wreckless spending. Here is the breakdown. I make 50k a year before taxes are cut, I am in 89k in debt. 25 dollars in savings. I had a descent bit in savings. I was able to buy the flashy car the boat and stuff I always wanted and still save. But over the last year and a half things have turned down. I considered my overtime part of my sallary...it has been cut. My sister went threw a horrible divorce with her 3 children. I used my savings to help pay her bills, fix her car, and pay for the divorce since her ex stole all her money. I don't regret that part..I would do anything for my family. Since that I have drained my savings, and with our hours being cut and cutbacks I can't keep up hardly with my bills...much less save. I am not behind on anything...I only have around 15k of the 89 in unsecured debts. I have tried to delay this for months buy trying to sell my posseions..I can't..the balance I owe is more than what some are worth and also the season kills my bike and boat trying to sell. I've talked to a lot of people and have gotten advice both ways, but honestly I can't take this anymore. I feel like I need a fest start and just to breath for awhile. I know this will hurt my credit but I kinda want it to. They make it so easy to buy things now on credit. I plan to live debt free for about a year and get my feet planted IF a strong IF our buisness stays like it easy. So far I don't expect to be employed where I am at now by March and currently looking for different jobs. Debt makes it hard to do that. I can't take some jobs due to the pay not being enough.

Most of it's my fault...I should have been better prepared for the future and I feel like if I don't get a start now on planning it's just gonna get harder and harder.

I was also worrying about the means test but after talking to several different lawyers. By the time I take my bring home and put in all the bills then take out deductions for housing, food, clothing I am -418 a month in the whole. The biggest part of all this is looking forward to being able to save and honestly buy a few clothes and a good list of groceries.



Sorry for the long story.

[LadyInTheRed]

Welcome to BKforum!

You say that you have talked to several lawyers. Did you tell them about helping your sister and did they tell you that a trustee can void transfers made within 2 years before filing to or the benefit of "insiders" (i.e., family members)? Did they tell you that Alabama's homestead exemption is only $5,000? How much is your mobile home and land worth? Are both paid for, or just the mobile home?

Even if you pass the means test, you would probably have to file a Chap 13 in order to keep your home. Or, consider options other than BK. You say you are current on everything. Are you able to pay your living expenses without incurring more unsecured debt? Have you considered buying a more affordable car and defaulting on your boat, bike and flashy car and letting them get repossessed? How much do the loan balances on these things exceed their value?

I may be wrong and I don't have enough information to know for sure, but I get the sense that you are being too quick to pull the BK trigger. It should be a final resort when there are no other options to deal with your debt.

[Archaic2021]

I'm sorry I was not clear.

The home and the land is not in my name. It's in my mothers name and I am living in it to help to take care of it since she moved.

I did tell my lawyer about my sister even with bankdraftf of where that money went.

I also showed my income declining..Not to mention today they set a 40hour no overtime rule. The only thing I can pay for right now is my truck and I really truly cannot afford that.

[Dis0314]

I agree with LITR.. you should really think it through and use BK as your last resort. I know each state is different so you need to go off your State guidelines on collections. It sounds like you are prepared to do whatever it takes to make it go away so you should consider doing with LITR said and dumping the secured dept thru repo and/or sell and pay what you can to the debt owed. if there is a balance the bank will contact you to make payment arrangements which can be low monthly payments.. the unsecured say goodbye to and tell the collectors to quit harassing you, research on your States guidelines and use your Rights to your advantage.. immediately stop making payments on everything and start stacking cash. Get rid of all the frills in your life and just work, eat, sleep. After a couple months you should have enough to buy a used beater car/truck for work and by that time repo man will be knocking for the repo of the current truck. perfect timing huh
I would do this and try and see if you can get through by dumping it all and starting over.. if the stuff hits the fan then file bankruptcy..