I need some help/guidance badly

[henktank]

Hello all, my name is Jesse, I'm 26 years old, live in New York. I don't know what to do at this point, please help. I put myself in a bad situation.
The first day of college was the day i saw them there, in the hallway, sitting at a table giving away free gifts for signing up for credit cards, me being an idiot signed up for 2 and now im here.

Here's my current situation, people I owe
Citibank $2500 ( current in client services, step before debt collector)
Chase $5500 (Currently in client services)
Chase $2500 (Currently in client services)
AmEX $12,000 (paying $300 a month to a collection agency to get them to stop calling)
Sprint $550 (currently in collections)
Sears MC $2500 (got a form a week ago it's going to arbitration)
Car $ 8000 (payments on time to day)
Capital one $500 (missing payments left and right)
Student loans $42,000 ( just signed a forbearance because of christmas)

Here's my story.... I just signed up for cards through the years, payed on time, had great credit. I was one of those people who would charge everything even if i had cash on me. I would miss a payment here and there after I started losing track on who i owed money and when. My interest rates started to sky rocket 25% per card, I was going to school up until 2 years ago. My school was one of those schools that took forever with the student loans, so it was a normal thing to be barred from class, so the last semester I was there i kept getting letter from the financial aid office about, payment. What happened was i always filled out my student loans apps every semester, but i let my fin aid adviser fill in the amount, they messed up, it was too late, went to collections. Had to stop going to school and start working full time to pay back $3000 to the the school. By the time i paid it off, my debt was starting to catch up to me. I couldn't go back because i needed the full time money and I'm so in debt that i cant see my self spending another $20,000 on school.
I want my freedom back, i don't want to be one of those people making $35,000 a year forever, i can't switch my job, try new things because i depend on this paycheck, i can't save, i cant pay my bills. I tried going to a credit counselor agency MMI 1 year ago, got all the paperwork but couldn't get the money together for the down payment. I lost my father in January of last year and i was in a depression, missed bills left and right.

I make about $35000 a year
$1900 a month.
I pay like $500 after consolidation on my student loans.
I pay $80 on my cell phone
I pay $400 rent a month ( stuck with my mom forever)
I pay $225 for my car
I pay $160 for my insurance
I pay $300 to amex collection ageny (all goes to interest)
and food, gas ect

I can't go out with my friends, hard to put money together for birthdays, christmas, embarrassed at all the bill collectors calling my family. I can't take out my girlfriend for dinner, can't go on vacation, im stuck in the life forever.

Now here we are today trying to find a solution, i call MMI again and they want me to talk to the collection agencies, to work something out. So I called each one of these guys(the annoying people calling my house every minute) trying to find a solution. All of my money is just going to interest, these companies won't help me even a little bit. I offered Citibank $2500 one $60 a month, they don't me we don't want peanuts, we're Citibank, we'll get our money back, borrow in from your family. I told him my mom is in as much debt as me, i can't, no one else could help. The he told me to goto prosper.com, i checked it out we're talking about a high risk like me taking out an impossible loan with 30% interest, not going to happen. I just got served arbitration papers, by a law firm. I have creditors calling off the hook. If i pay them whatever money it's all going to my interest on the cards. I will be in debt forever. I have a steady job, been there for 8 years, full time for 2, but my hours make it hard to even a second job. I want a fresh start, if its possible, i want to make things right, start my career.

I'm asking you all for some guidance on what I should do, I really feel like it's only going to get worse. I am candidate for bankruptcy, what would you do?

Thanks for your help.

[CATCHMEIFYOUCAN]

WELCOME ! and YES, I would file for BK !

If you have a steady income you are a candidate for BK, even if you didn't. Go throughout the post and check out the links. This forum is very helpful and supportive, don't feel bad. WE ARE ALL IN THE SAME BOAT, just have different situations.
Lawyers usually give initial consultations for FREE, get a few qoutes and a feel of what you'll need when you file.
Make sure you go through an approved Credit Counseling Agency, plenty will chime in here to make you feel at ease!

Have a certificate approved by a CCCS ready when you file
Have at least 6 months worth of your last paystubs together
Have at least 2 years of tax transcripts (FREE from the IRS - just call them)
Have at least 2 months worth of bank statements

I did a little scoping the forum for you !

http://www.usdoj.gov/ust/eo/contact.htm

Provides phone numbers, fax numbers, email addresses, and some websites for debtors to share complaints or concerns about:
* Required pre-filing and before-discharge debtor education programs
* Means testing
* FOIA and Privacy Act
* Regional US Trustees
* General comments/inquiries/questions

http://www.usdoj.gov/ust/

Link to the Dept of Justice website for info about Means Testing.

Includes Means Test, Median Income figures, and Schedules Allowables.

http://www4.law.cornell.edu/uscode/h...sup_01_11.html

Title 11. Key parts of The New US Bankruptcy Law from the Cornell Law Library.



Best Wishes, Catchmeifyoucan ! ! !

[henktank]

I still would like to know what everyone would do, so please tell me.
I just went to the doj website and it said that the median income was 41,000
I did the means test by hand, very easy cause i own no properties and stuff, all i had to do was answer like 1-14 and it seems i passed the means test? Does that sound right to you guys as well?

[BK&Filer]

I still would like to know what everyone would do, so please tell me.
I just went to the doj website and it said that the median income was 41,000
I did the means test by hand, very easy cause i own no properties and stuff, all i had to do was answer like 1-14 and it seems i passed the means test? Does that sound right to you guys as well?

Yes, if you fall below the median income the means test is very short and easy. In reading your story it sounds to me like bk could be a good option for you, although you have to remember that the student loans are not dischargeable. I filed pro se - but it seems like a good idea to at least take advantage of a free consultation with a bk lawyer (or two, or three) to review your specifics.

[BKTango]

You've made the first step, now make the second. Find two or three bankruptcy lawyers in your area, and have a meeting with them, most are always free(the first meeting). They will help you figure out the best route for you. You cannot discharge your student loans, and I am not sure if I understood your post correctly and you live with your mom, how that would play into household income. Again this would be where a lawyer would really help you with all of the ins and outs of everything. We have all been there, currently are there, or are just starting there. You will be fine, so try not to worry too much, there is always a way through everything. Good Luck!

[SinkingFast]

And I would suggest you just stop talking to the Creditors. Every time you do, you give them little scraps of info about you.

"I offered Citibank $2500 one $60 a month, they don't me we don't want peanuts, we're Citibank, we'll get our money back, borrow in from your family. I told him my mom is in as much debt as me, i can't, no one else could help."

Just don't answer the phone. User Caller ID or an answering machine to screen the calls.

Keep paying the bills you need to to live. Your rent, auto, insurance, and student loan. Keep your utilities paid current. If you don't, you may have to come up with huge deposits later to get services. If the cell phone is with Sprint, maybe look for another carrier and let Sprint go in BK.

Chat with a DOJ approved Credit Counselor. Get their take on your situation. Consult with 3 or 4 BK attnys. Get their take. Learn what your options are and work from there.

[HHM]

Ok, you have $26,050 in unsecured debt, and significant student loans. Right now, your debt is 74.4% of your gross annual income. You have at least one account in collections (the AMEX), and apparently some creditors have already involved law firms. Based on a standard 2.5% minimum payment, your total minimum payments on just the unsecured credit card debt is probably around $650 per month. Even if you could afford to pay $650 per month, each and every month, it would take you 63 months to pay off that debt. And you apparently have no savings of any kind and no one with any money who is willing to help you.

I don't really see how you have any choice but to file BK. The question you have to ask yourself is, how are you going to deal with this debt? You can't afford the payments, collectors and law firms are already involved, you have no savings, and no one willing to help...that leaves only ONE option, bankruptcy. What else could you really do (except ignore the problem and allow it to get worse).

Just start the Bankruptcy process and get it over with...trust me, you will wonder why you didn't do it sooner.

[niteflytes]

If I were in your situation I'd file. When I was thinking of filing I searched and read old posts on here for hours and learned a lot and that would be my added bit of advice...learn all you can about BK. The lawyers I talked to were all very surprised that I already knew the terminology and the basic process of filing and it helped me know what questions I wanted to ask.

niteflytes

[henktank]

This my be the best site ever, filled with all people who have been through rough and strenuous situations, but everyone is so helpful and so positive, i thank you all. I'm meeting with lawyers this week, wish me luck, just adding my bills/ expenses and finding all my old bills and paperwork, again thank you all.

[cso5@]

Sent you a PM

You are new, so you might not have seen it.
I'm in NY, too -- wondered if you are in the same general area and if you'd like to hear my experience with how things went in this part of NY.

cso

[miss puff]

I would file if it were me in your situation.

[silturbo]

hey friend, i'm another new yorker in debt. we should come meet together someday