Should I file for BK?

[Tyler19]

Thanks for the help. I make 10.50 Hourly and the min wage is like 7.15. Do they consider that close?

Info on Garnishment: Are you at or near minimum wage? If so you might be ok right now just not making payments while you decide what to do with the debt. Of course I wouldn't do that without the advice of an attorney. You will have to decide what is the best course of action for you. If you decide that filing is the best thing for you and you want a fresh start then that is what you decide. We all file for different reasons. I agree that if you file now you can't file again for 10 years, but if you know that going in then you are fully informed you you cannot get yourself in this position again. Take our advice and go see three attorney's for free consultations and see what they say. Welcome and keep us posted!!

Michigan Wage Garnishment

Federal statute limits withhold up to 25% of disposable earnings per week, unless the debtor's earnings are at or near the minimum wage, 15 USC 1673, in which case no withholding is allowed.

Time Limit: Garnishment writ expires 91 days after issuance, MCR 3.101(B)(1)(a)(ii). A new writ must then be issued and served.

Stay of Wage Garnishment: Courts may grant the debtor an "installment payment order," MCL 600.6201, MCR 3. 104(A), which bars wage garnishment, provided that the debtor pays as required by the order. Such an order does not prevent garnishment of bank accounts or income tax refunds. MCL 600.6245, MCR 3.101(N). Some courts nevertheless do not allow any garnishment while an installment payment order is in effect.

[chpxiii]

I agree with everyone else that you should pay off your debt.

If you can pay off your debt in 4 years, you will only be 25 and you will show that you have been able to sustain paying your debts. Bankruptcy is *NOT* a quick fix.

If you file chapter 7, sure, you will get a "fresh start," however, you will have a bankruptcy on your credit report for TEN YEARS. Your credit rating will take a hit.

If you end up filing chapter13, you will still end up paying off any secured debt and possibly some unsecured debt in 3 to 5 years. You will have the chapter 13 on your record for SEVEN YEARS from the time you file and there is the possibility that something could happen and you may not be able to finish paying off your chapter 13 payments - what eneds up happening is your case will be dismissed and you will be right back to right when you filed - still in debt. Further, you CAN NOT take out ANY credit while in a chapter 13 payment plan. There are some exceptions, but you will have to petition the court and ask permission from the trustee. And even then, they may not.

Bankruptcy will give a debtor a "fresh start" - but the "fresh start" fails if you still have no way to increase your income. You definitely need to increase your income. The number one reason why some people are not better off after bankruptcy is they have not taken the measures to increase income and so they're no better off.

Don't look at bankruptcy as an easy way out. It is not. You need to increase your income, regardless of whether you file bankruptcy. You can pay off your debt in 4 years and possibly have a *boost* to your credit rating and know that you have paid off what you owe ... OR ... you can file bankruptcy, take a HUGE hit to your credit rating, and possibly find yourself in the same situation if you have not taken measures to increase income.

You're right, bankruptcy is a business decision. But not all business decisions are the same for every "business." I suggest before you start talking about "business decisions," you learn about business and you consider looking at your money and your finances as a business first, before making a "business decision" to file bankruptcy. Because regardless of whether *you* are making a "business decision" to file bankruptcy, creditors will still look at you as a regular ol' person and treat you as someone who cannot handle credit.

Think long and hard before you decide to file if you are going to do it. There are consequences beyond just filing. IMO, paying a debt off for 4years and NOT having a bankruptcy on your credit report while things may still be "tight" financially is far far far better than filing bankruptcy, getting your debt absolved, and having a "black mark" on your credit rating for 7 to 10 years.

[Bandit]

What are your opinions on my situation.

thanks.

Hi Tyler19

If I was living at home right now or somewhere I did not have to pay much rent, I would stay right there for awhile & try to put the family life on hold for a couple of years. If you both really love each, that will be there through thick & thin & this is just a minor set back. You have a long time to make a family.

You already learned a lesson about credit & getting into debt too fast but you can still correct that with the position you are in without filing a BK. If you really want to make a good life for her & yourself, have a home with good things, then I would just stay right where you are for now & let those things come together naturally without trying to make it happen too fast.

I see most of you said look for a better job income. ......... I have no assets no savings no college and can not get a nice paying job plus I'm in debt 17k+.

I know how all these things feel. It is easy for one to say get a better paying job but not so easy to do in reality, yet not impossible in good time. Ever think about using one of your skills to do your own jobs part time with what you already have? or get side jobs where you get to keep all the money?

You can do better than 10.50 an hour but it is nothing to sneeze at either. Does your job offer health insurance, potential to move up & get raises? Does it offer some longevity & vacations? These things are very important especially if you want a family. One night in the hospital without insurance can put you right back into the same debt you are in right now. It happens every day.

If it took me 4 years to pay off the debt would i be better off in 4 years with a bk or with no bk.

If you pay about 400 or 500 a month for 4 years that should put you out of that debt you have right now. If you work part time somwhere you can pay it off faster.

Are you thinking the money you put toward the debt would be better invested in something else, like a small mortgage? If so, then that would be a better bet.
or put some to the side until there is enough to pay for a nice used car in full?
A truck with a plow on the end of it can bring home some real good extra wages when the white stuff comes down.

If you just want out of debt so you can be free for awhile & clear your head, I can understand that too.
If you want out of debt to start a family- then plan on being in debt from that time forward....so you really wont be getting out of debt just for filing BK.
Have a good look at the FAQ section & learn every law to make sure you understand it, then direct important questions to a good attorney.

If it were me, I would not rush into anything- It is already October, Think about it all through the end of the year before making any big decisions. That is my opinion.

[JRScott]

I understand about living in an economically depressed area. That's why I didn't really suggest necessarily a job change right now. There might be some things you could take as side jobs where you might could make some extra money like paper route, pizza delivery, waitressing (for gf) etc. Where you might could make a little extra each week and put it all towards the debt.

I doubt they would consider 10.50 an hour close to minimum wage .

My greatest concern is that without rent/mortgage and other related expenses its going to be hard to show that you don't have disposable income after your allowed expenses. I'm concerned that because of this you'll be forced into a Chapter 13 which as some can tell you is a very hard 5 years. (I suspect yours would be 5 years with almost 100% payback on all the cards).

However only an attorney really can tell you this for sure. I think maybe you should schedule 3-4 free consultations with attorneys in your area. They can give you a better feel.

One person above suggested paying the cards off from highest interest rate to lowest interest rate. That is economically sound advice, however most of us are emotional creatures. For the emotional creature it is sometimes better to arrange the debts from least amount owed to most amount owed irregardless of interest rates. You then pay minimums on all bills, any extra goes to the bill you owe the least until it is paid off, then to the next least til it is paid off etc. (This Dave Ramsey calls a debt snowball.)

If you go to Dave Ramsey's website you can get some free budget downloads that can help you manage a budget. They are kinda nice.

My situation wasn't entirely unlike yours. I had a relatively low amount of debt compared to some, it was though about twice my annual income. I have not been well in recent years though and have injured my back three times in the last 6 years. Thus it is hard for me to work more than 40 hours a week. If I had been a younger man without the health problems it is likely I would have chosen to work more and pay off all the debt but that was not possible for me.

Thus it is a very personal choice as to what you decide to do. I think going for some free consultations in your area with bankruptcy attorneys might help you understand your options better.

[JollyGG]

I see most of you said look for a better job income. Michigan's economy is horrible. I have no college so almost any place I go that pays decent wont even interview me. I cant afford to go to school with the current debt I have no. I cant really afford anything except for my bills and maybe a few extra things per month. I have definitely learned my lesson with managing money and I have learned a lot. I know that I will never get myself into a position I am in now. I have no assets no savings no college and can not get a nice paying job plus I'm in debt 17k+. If I ever get stuck paying for my own rent or an emergency happens I'm screwed. Right now it would take me about 4 years to pay off my debt.
I'm trying to look at this as a business standpoint. If it took me 4 years to pay off the debt would i be better off in 4 years with a bk or with no bk.

As far as the person who said something about the wage garnishments, how does that work and where could I find some info on that.

Thanks.

Once your are out of debt, either by bankruptcy or by getting a second job and paying the debt off then get yourself to college if that is what you want.

However, there is no reason to wait on this debt to plan your future. It is an excuse and if you allow it to be a roadblock you will simply find another roadblock once this one is gone.

Go to community college in the evenings and weekends. You can keep your job and keep up with your obligations. Or talk to some plumbers and electricians about being a apprentice journeyman either where you live now or where you want to move. You'd get a paycheck while you learned your trade. Take a job in a field that you want to be in that isn't your ideal job right now, but has room for advancement. For example a menial job in construction where you can learn more skills and move into a better paying position. Look at jobs in fields that need employee's, for example nursing. Many hospitals are so short staffed that they will employ you as an aid and pay for you to get your LPN, then employ you as an LPN and pay for you to get your RN. Then you agree to work for them for a certain number of years. There are plenty of opportunities out there. Decide what you want to do and go for it. This is your future and your life. No one is going to hand opportunities to you on a silver platter. You have to go for what you want, ask for what you want, and sometimes fight for what you want.

I got myself out of a similar amount of debt while my husband was a full time student and I worked as a nurses aid. So I know it is possible. However, I also declared bankruptcy on what many would consider a small amount of debt 30k. And that was the right decision. So I know it is not the debt load that is important but the situation you are in. When I got out of debt the first time it was just my husband and I. We lived in a cheap trailer, ate lots of mac and cheese and worked alot. The second time I had a mortgage, kids (daycare and less time to find additional income), student loans, car payments, ect. When we made our spreadsheet (as I recomended you do) we found that we didn't have one cent left over for debt payments. We actually had to trim areas of our budget just to make ends meet. If you find t hat to be the case then file. However, if you really can get everything paid off in 4 years. Then get a second job and make that four years one year or two years and pay off you debt.

[Tyler19]

I understand about living in an economically depressed area. That's why I didn't really suggest necessarily a job change right now. There might be some things you could take as side jobs where you might could make some extra money like paper route, pizza delivery, waitressing (for gf) etc. Where you might could make a little extra each week and put it all towards the debt.

I doubt they would consider 10.50 an hour close to minimum wage .

My greatest concern is that without rent/mortgage and other related expenses its going to be hard to show that you don't have disposable income after your allowed expenses. I'm concerned that because of this you'll be forced into a Chapter 13 which as some can tell you is a very hard 5 years. (I suspect yours would be 5 years with almost 100% payback on all the cards).

However only an attorney really can tell you this for sure. I think maybe you should schedule 3-4 free consultations with attorneys in your area. They can give you a better feel.

One person above suggested paying the cards off from highest interest rate to lowest interest rate. That is economically sound advice, however most of us are emotional creatures. For the emotional creature it is sometimes better to arrange the debts from least amount owed to most amount owed irregardless of interest rates. You then pay minimums on all bills, any extra goes to the bill you owe the least until it is paid off, then to the next least til it is paid off etc. (This Dave Ramsey calls a debt snowball.)

If you go to Dave Ramsey's website you can get some free budget downloads that can help you manage a budget. They are kinda nice.

My situation wasn't entirely unlike yours. I had a relatively low amount of debt compared to some, it was though about twice my annual income. I have not been well in recent years though and have injured my back three times in the last 6 years. Thus it is hard for me to work more than 40 hours a week. If I had been a younger man without the health problems it is likely I would have chosen to work more and pay off all the debt but that was not possible for me.

Thus it is a very personal choice as to what you decide to do. I think going for some free consultations in your area with bankruptcy attorneys might help you understand your options better.

I do pay rent, $565 monthly plus Electric which is about 75$
I have about 300$ left monthly after I pay all bills, rent, food, gas for car, etc...

[chpxiii]

I do pay rent, $565 monthly plus Electric which is about 75$
I have about 300$ left monthly after I pay all bills, rent, food, gas for car, etc...

Tyler, if you were to file bankruptcy right now, you'd most likely end up in a chapter 13 where you will have to pay a percentage of your debt over a 3 to 5 year time span.

Better to just pay off your debt over 4 years and you won't have the mark of bankruptcy on your credit report.

[JRScott]

Tyler, if you were to file bankruptcy right now, you'd most likely end up in a chapter 13 where you will have to pay a percentage of your debt over a 3 to 5 year time span.

Better to just pay off your debt over 4 years and you won't have the mark of bankruptcy on your credit report.

I agree with chpxiii, if you have 300 dollars a month left after all that then it would be better to decide yourself how to use that money. If you file for bankruptcy you'll be in it for 5 years and will pay 300 dollars a month. (which would be 60 x 300 or 18000 dollars).

If you take that and get some part time jobs on the side to help knock out the debt you can probably be out of debt in 2 years. Then you can leave the part time jobs and get back to your plan for schooling which I agree is very important wish I'd had more schooling in my youth. (You'd only be 23 at this point so you'd still be in good shape).

[guzzie]

good evening.....hope you can solve problems without the bk......you are both young and have your whole life ahead of you......look at any or all options open to you.....maybe you could find some aid for schooling to help you get a better job for now....as for your girlfriend,
the medical field is booming....maybe nursing school? or some thing else in that field...try to exhaust all options because you can't file for 8 years again and you may really need to someday....( hope not ) I wish you both the best of luck in your future....keep us posted....
good luck........guzzie

[Tyler19]

God I dont know what to do!

[Tyler19]

one financial diaster away from hell. If I were to crash my car or it stops working im toast. 98 pontiac sunfire 160K miles. I not currently late on payments but Im heading there.

[Bandit]

one financial diaster away from hell. If I were to crash my car or it stops working im toast. 98 pontiac sunfire 160K miles. I not currently late on payments but Im heading there.

That is kind of the way life is, no absolute guarantees & one financial disaster away from hell. Even the people with millions of moola feel like that at times as they have more to lose when hell comes.

I thought before you said you did not have a car. (?)

[CindyLou]

Tyler,
You have got to do what YOU think is the right thing to do!!! You need to make sure you have reliable transportation also. I would also venture to say if you sat down with an attorney and looked at your expenses and counted EVERY expense including medical, haircuts, etc that you do not have 300 left over. Before you make any decisions, please go see at least 3 attorneys for free consultations. We are all giving you our opinions. But for you and your future family, BK may (or may not) be the right thing. You have to make that decision. And at 10.50 an hour I can't see where you wouldn't qualify for a chapter 7 once you take into account your expenses for transportation allowances, food, etc, etc etc which an attorney can help you understand. I am not saying you should or shouldn't go either way, what I am saying is that you and ONLY YOU can know what is right. If you truly want a fresh start and you know in your heart that this is something that you want to look into then you have to go and see those attorneys to see if it is an option at all. That is the first step. Then just go from there.

[Tyler19]

That is kind of the way life is, no absolute guarantees & one financial disaster away from hell. Even the people with millions of moola feel like that at times as they have more to lose when hell comes.

I thought before you said you did not have a car. (?)

I have a car, But I do not have monthly payments for it. It was given to us by my girlfriend's mother. (thank god)

[Tyler19]

Tyler,
You have got to do what YOU think is the right thing to do!!! You need to make sure you have reliable transportation also. I would also venture to say if you sat down with an attorney and looked at your expenses and counted EVERY expense including medical, haircuts, etc that you do not have 300 left over. Before you make any decisions, please go see at least 3 attorneys for free consultations. We are all giving you our opinions. But for you and your future family, BK may (or may not) be the right thing. You have to make that decision. And at 10.50 an hour I can't see where you wouldn't qualify for a chapter 7 once you take into account your expenses for transportation allowances, food, etc, etc etc which an attorney can help you understand. I am not saying you should or shouldn't go either way, what I am saying is that you and ONLY YOU can know what is right. If you truly want a fresh start and you know in your heart that this is something that you want to look into then you have to go and see those attorneys to see if it is an option at all. That is the first step. Then just go from there.

Thank you very much .