20 years old and need advice quick!

[ibanez5str]

Okay where do we start I still and always have had a steady income. I did some stupid stuff in the past year with money. I am almost sure bankruptcy is my only option but I need help and advice quick.

Here is my debt:

Car - $25,000 financed
credit cards:
$500
$500
$3000
$6000
personal loans:
$2000
medical bills:
$3000
appartment break lease fee (I left 1.5 months early at a $400 a month place):
$1700

My total debt is over 40 grand and I'm only 20. I am going to voluntarily have my car repossessed because I'm over 12k upside down on it! The dealership I got it from ripped me off!

I may buy a mazda mx6 I found tonight for $1800 cash.

My problem is not my ability to pay my minimum monthly payments but moreso the looming debt I have and how long it will hinder my life for. I make at least $1400-1600 a month.

I need advice please.

[Flamingo]

Where are you staying now? Do you have parental/family help available? Filing BK at age 20 will hang like a headstone around your head as you step out into the work force. Are you in school? Considering school? I am wondering how you were able to get credit cards/financing at your income level. You only have $9,000 in credit cards, $2,000 in personal loans and $3,000 in medical. If you could stay with your parents if that is possible for a while you could put one heck of a dent into that debt and save some cash. You need to provide further information as to your monthly expenses, where and how you are living now, any other assets, etc. for anyone to really help you out. If you are close with mom and dad, I would be knocking on their door right now for some help and advice; my youngest daughter is one year older than you and you have no idea what you would be up against filing BK at such a young age. But if it's necessary, it's necessary...Just make sure you put things in place afterwards for it not to occur again.

[JRScott]

Not really enough info to make an informed choice.

Most likely based on what you say and without further info you probably looking at a Chapter 13.

As Flamingo says we need more information, is the amount listed gross or net? What is your current housing cost? What are your current utilities etc?

[AngelinaCat]

Flamingo is right.

You are 20 now, and if you have a BK on your record--DO NOT THINK THAT THE HR DEPTS of ANY company you wish to to become employed with--can't get your record. They CAN and WILL!!!! Any application and resume you submit--once they have searched your record--yours will be tossed down the toilet.

This economy is very bad, and the head-hunters for employees are becoming ruthless as more and more qualified people are being thrown out of work.

Do yourself a very HUGE favor and cut your expenditures to the bare bones, and learn to live within a budget.

Hang your head low if you have to and go home to Mom and Dad if you have to. Just be prepared to work at something and to pay Mom and Dad at least $200.00 a month in rent. They are suffering too.

[ibanez5str]

I have an appt. with a BK attourney on the 17th.
I have made up to $4k+ a month and am very good at making money.

Here are the other details:

-I run a business with my dad
-I recently moved back at home because of all this
-I don 't have to pay them rent
-I hate the fact that I got beyond a bad deal on my car
-The car is worth $12-14k right now yet my financed amount is $22k
-I drive a mazda rx8 and had a paid off mazda 6 that I had before the 8. Unfortunately someone hit and totaled it so I had to get the rx-8, thus the bad deal. I've had a lot of fun with these cars and my gfs since I got out of high school.
-I am very car saavy and know the ins and outs of my car.

-$8,000 of my debt is due to me loaning money to my dads business cuz hes broke. He has been giving me the money for those payments lately but couldn't for a while. One of them is $1400 past due but they are working with me.
-My parents are extremely in debt and have tried not to file bankruptcy, but are going to have to.
-My credit is already wrecked due to the past 6 months and my stupid financial decisions (went multiple months without paying anything)
-I am past due on the car by a couple payments. They are willing to re-do the loan and make it current by dropping the payment and extending it from 72 months to 84 months. Makes me sick just thinking about it.

Ok so with that extra info can I get some more refined advice? Thank you so much guys.

[Flamingo]

I have an appt. with a BK attourney on the 17th.
I have made up to $4k+ a month and am very good at making money.

Here are the other details:

-I run a business with my dad
-I recently moved back at home because of all this
-I don 't have to pay them rent
-I hate the fact that I got beyond a bad deal on my car
-The car is worth $12-14k right now yet my financed amount is $22k
-I drive a mazda rx8 and had a paid off mazda 6 that I had before the 8. Unfortunately someone hit and totaled it so I had to get the rx-8, thus the bad deal. I've had a lot of fun with these cars and my gfs since I got out of high school.
-I am very car saavy and know the ins and outs of my car.

-$8,000 of my debt is due to me loaning money to my dads business cuz hes broke. He has been giving me the money for those payments lately but couldn't for a while. One of them is $1400 past due but they are working with me.
-My parents are extremely in debt and have tried not to file bankruptcy, but are going to have to.
-My credit is already wrecked due to the past 6 months and my stupid financial decisions (went multiple months without paying anything)
-I am past due on the car by a couple payments. They are willing to re-do the loan and make it current by dropping the payment and extending it from 72 months to 84 months. Makes me sick just thinking about it.

Ok so with that extra info can I get some more refined advice? Thank you so much guys.

I have been known for a long time on here to cut it to the quick sometimes and I read your second sentence above and just shook my head. You state you may be good at making money but do you realize you are also good at spending it and not making correct decisions. Probably cause you are learning from mom/dad and are used to everyone always being in debt. Unless you focus on changing your lifestyle now, I see you ending up filing BK again in the years to come...I will leave my advice at that and let some others chime in here. While I think you mean well in what you do and think, you do need to start changing your financial outlook as to debt and "that you are good at making money."

[ibanez5str]

Sorry I just wanted to convey I'm not a stupid bum. I made dumb decisions and now I will either pay through chapter 7 bankruptcy or through biting the bullet and paying them back over the next 6-8 years.

Right now, in this economy, and how quickly it has changed things, I make $1500 or so a month. I will never finance again. I do not think it is acceptable..ever.

The only reason I am in this debt to begin with is because of what I was grown up with. I have learned my lesson. My parents encouraged me to finance a car and to have credit cards. Trust me I have learned my lesson. I will never finance anything again..for real.

[DustinLH00]

I think your biggest problem that you are going to have is that you have no expenses to offset your income. If you make $1500 a month take home and you file BK on all of your outstanding debt and you have no rent, utilities, etc... I think it will show that you have $1500 a month in disposable income. I believe you are going to have to prove that you will spend at least $1400 a month after BK on expenses to file a Ch 7. And that will be very hard to prove when you are living at home and do not have any bills...

Sorry I just wanted to convey I'm not a stupid bum. I made dumb decisions and now I will either pay through chapter 7 bankruptcy or through biting the bullet and paying them back over the next 6-8 years.

Right now, in this economy, and how quickly it has changed things, I make $1500 or so a month. I will never finance again. I do not think it is acceptable..ever.

The only reason I am in this debt to begin with is because of what I was grown up with. I have learned my lesson. My parents encouraged me to finance a car and to have credit cards. Trust me I have learned my lesson. I will never finance anything again..for real.

[ibanez5str]

Well if you add up my monthly bills..

$150 a month for gas MINIMUM (gas guzzler)
$468 a month on the car
$200 car insurance
$240 cc1 (minumum payments)
$100 cc2
$25 cc3
$70 cc4
$100 medical
$50-100 lease agreement
$130 unsecured loan
+____________________________
= $1583

That's bear minimums folks not to mention food, car maintenance, etc

Plus I get paid under the table so I could just go ahead and have my dad throw me on a legit payroll for like $700 a month or however low I need in order to qualify.

[ibanez5str]

BTW the reason I was able to get all this credit was I bought a mazda 6 the day I turned 18 and had it for 1 yr 10mo. and then paid it off. After that I had great credit so I financed my current car. The big problems came with the gas bill + ex gf + appartment lease + car payment + the 8 grand I got for my dad. It just all started going down hill after a while and some unexpected money pits that came up forced me to not pay my bills for a while. Now my credit is soiled pretty good.

[DustinLH00]

You cannot include payments that you are discharging in BK. If you are filing a Chapter 7 and are including all those debts in the BK, then you cannot count them as payments for post BK. What of that stuff in the list are you going to have after you file BK?

Well if you add up my monthly bills..

$150 a month for gas MINIMUM (gas guzzler)
$468 a month on the car
$200 car insurance
$240 cc1 (minumum payments)
$100 cc2
$25 cc3
$70 cc4
$100 medical
$50-100 lease agreement
$130 unsecured loan
+____________________________
= $1583

That's bear minimums folks not to mention food, car maintenance, etc

Plus I get paid under the table so I could just go ahead and have my dad throw me on a legit payroll for like $700 a month or however low I need in order to qualify.

[ibanez5str]

I would prefer none of it. I don't need any of it and would include it all.

[DustinLH00]

Ok, so if you file bankruptcy on all of that debt then you will not have those payments afterwards. In order to file a Chapter 7 and wipe out all of that debt, you have to show that you will have less than $100 a month income after expenses. They will look at your last 6 months income and base it on that. They will see you bringing in $1500 a month. Then you have no bills, utlities, rent, car payment or anything to show them you will be paying. They will see that you make $1500 and will still have $1500 a month after BK and make you do a Chapter 13.

Let me give you an example:

I make $4000 a month. After I file a Chapter 7, I will still have a $1200 mortgage payment and $500 car payment. I am allowed to deduct more expenses because I am single and live alone. So I am able to deduct another $2100 for utilities and costs of living. After that, I would have $200 left a month according to them. They will say I need to put that $200 a month toward my debt in a Chapter 13 and will not let me file a Chapter 7...

I would prefer none of it. I don't need any of it and would include it all.

[ibanez5str]

I'll do whatever it takes..even if it means not working or hiding the money I make. I do not want to live at home for the next 4-6 years while attempting to pay off this debt and getting NOTHING OUT OF IT. I'll be 21 in 1.5 months.

[ibanez5str]

I really appreciate the help man this is a tough decision, and is kinda stressful =(