In desperate need of help

[struggling]

My financial life is a mess and I don't know what to do. Bankruptcy seems my only option but I can't even afford the cost to file. I have about $20+ in debt, an upside-down car loan that I'm 2 months behind on, I haven't filed my income taxes in 2 years (one reason because a creditor got a judgement against my income taxes and I was afraid to file, and two because I owe over $800 for 2006). And to make matters even worse I just got a letter from my bank that it's being garnished by Chase for $3,600. I only had a few hundred in there and that was to go to my car note, but now it's all gone. I only make $17k/year and this is a new job I just started 3 months ago.

I spoke to someone at a lawfirm and she said I must be current on my car, and I must file my taxes before they can do anything. Also, although they advertise payment plans, I would have to pay a $500 retainer fee before they can do anything. Although I'd still have to pay the entire $2000 before they even file.

I'm very depressed...if I lose my car I lose my job. And seeing as though my next check is only gonna be $500 for 2 weeks and at that point I'll be behind 3 months on my car, and that's the ONLY $$ I'll have to my name, I don't know what to do.

I keep hearing about payday loans and such. Can I get one of those to help pay my legal fees if I file BK?? And what do I do about my car? That situation and the garnishment is taking a toll on me...I'm really at dire straits. Please someone help me.

[MaryAnn]

What kind of car payment do you have that you only earn $17k a year? BK will wipe out your debts, but the bigger problem is how will you live on what you currently earn? You need to make more money.

Filing taxes is a federal law. You have to do it regardless if you file BK or not. Everyone files taxes.

[lrprn]

DO NOT get a payday loan! If you do, you can't file for at least six months afterwards, and you don't have the $$ to wait that long.

Sounds like you are living beyond what you make and have been doing so for awhile. However, it's a good sign that you are trying to get control of your financial life now.

Here are some ideas to consider:

- Since you are already two months behind on your car payments, you are now in the zone for repossession. If the car is fairly new, you could wake up tomorrow with the car gone. If you can't make a car payment and quickly, then keep everything out of your car that you need. The chances of getting back belongings from a repossessed car are about zero.

- Find a way to make more money and fast. Do they have LaborReady or another temporary job agency in your town? Although it's hard to work two jobs, many have done it. You do what you have to do to get through a rough patch.

- Do you have anyone in your family who can lend a hand?

- If you are renting, can you move in with family or friends and free up your rent money for several months to pay your car loan and save for the lawyer to file?

In your situtation, there aren't any easy, quick answers, especially with a judgment already against you. But there are ways out if you are willing to do the hard things that may have to be done - that may include giving up your car and job, then finding another job that doesn't require a car so that you can file.

You've dug a deep hole for yourself, but you've realized that and that's half the battle. Climbing out is going to be hard, but it's do-able. Hang in there - keep us posted on what you decide to do, ok?