unable to file chp 7 right now, what to do?

[Irina]

i filed chp 7 in 2003 after a divorce left me with a great deal of debt. i dnot have that much debt right now, not even close, but i just seperated from my boyfriend of 9 years, and after a year of trying to make it on my own, i can't pay my bills again. i can't express how frustrating this is b/c all this time i didn't aquire new debt. but i did have to buy furniture when i moved in alone, vacuum, stuff like that. since i haven't been making it i have had to borrow. like i said, i dont have a huge total amount, but i can't pay my unsecured debt.

i havent paid in about 3 months. i'm getting calls and now letters. i can't file chp 7 again until 2011.

i know people say not to pay, but im afraid they'll take me to court. how long before severe legal action is taken? are they likely to garnish my wages for a small debt, like 3k? that's my highest debt. the other 2 are under 1k.

now i cant' even pay my car.

i dont care about my credit, i just am scared of waht can happen to me if i'm taken to court, or if my wages are garnished. i can hardly make it as it is.

any advice?

[StartingOver08]

Based on your post, it sounds like you have a problem that BK will not fix - you have an income problem. Can you get a roommate or a second job? Can you post your details so we have an idea of what you are facing and maybe can help you formulate a plan?

[Irina]

my problem isn't one of income, it's living in one of the highest cost of living cities in Florida....50% of my earnings go strictly for rent. the remainder goes to living expenses (food, gas, utilities). i have no disposable income.

i could qualify for chp 7, but just can't do it right now.

[StartingOver08]

my problem isn't one of income, it's living in one of the highest cost of living cities in Florida....50% of my earnings go strictly for rent. the remainder goes to living expenses (food, gas, utilities). i have no disposable income.

i could qualify for chp 7, but just can't do it right now.

Maybe I am not understanding your situation very well.
If you only have about $5000 in total unsecured debt and you are currently renting, then how much do you owe on your car? Is that the only remaining debt?

You are eligible time wise for a Ch 13 filing, but unless the car debt is extremely high, it would not make much economic sense to file for a 13 now.

[Irina]

my total unsecured debt is about 6k. my car is a lease and the remaining payments are 5500. i pay 1400 rent. that's 50% of my monthly income. understand, taht is the market price here, i'm not living in luxury housing...trust me. i work 40 hpw as it is, in an administrative job.

chapter 13 wouldn't be cost effective b/c it would cost me 3500 to file and the amount of debt wouldn't be that great. also, my repayment plan is probably one i couldn't do anyway....so my idea is to wait till i can file chp 7 again, (unless i come into some money) b/c i know that at the rate of cost of living where i live, i won't be able to pay my debt now, or in the very near future.

but i can't file for another 2 years, so i'm concerned about what the creditors can do to me in the meantime, 2 years is a long time.

i want to buy myself some time and i'm doing the best i can to do that. i haven't stopped paying the car yet, but every month i pay later and later. i know i can't really afford it anymore.

[nc73]

6k unsecured, are you kidding me? Move or get roommates. Rent out a room somewhere that costs 4-500 and you will be fine.

[Irina]

nc, that's why this is so frustrating b/c i dont have nearly the amount of debt that others on this forum have, but i still can't make it. i live in a very, very small town so my housing options are very bad. i pay 1400 a month rent, and it's the lowest rent i could find for a reasonably sized apartment. our studios here go for about 1000 to 1250 and they are tiny. i can't reduce my living space any more than i already have. i've thought about leaving this city and moving elswehre, which would mean a lower paying job but maybe better housing opportunities.

this is very frustrating indeed.

[tjs1970]

this is going to sound offly harsh and i dont want to offend anyone........but it might time to think about moving.......if you cant afford to live there because of the rent, go somewhere it is cheaper......even if out of state

[Irina]

tjs, you are not offending me. trust me, that thought looms over my head every day. i have a good paying job where i live, but it's not ENOUGH to make it here on my own. and like i said above, our housing options here are very, very few. for the first time ever i seriously feel like i'm being pushed out of my community which has been my home for over 20 years.

when i look at my total debt, and what i make, i can acknowledge my biggest problem isn't my debts (credit cards), its the huge amount of rent i pay, and my car payment/car insurance. those two things are sucking me dry.

thanks for listening. i might have to seriously consider a relocation.

[DeadManCrawling]

I feel for you. I have a similar situation, but it is due to income loss from an injury. My debt skyrocketed because of the injury and left us in an unaffordable home. We are trying to get a mod, but it looks gloomy.

You may be able to drag things out to 2011 if you make an occasional, sporadic payment and communicate with your creditors about your situation. Don't mention filing BK, of course, but you may be able to buy a year or whatever you need.

We stopped paying everything three years ago. Wife has two judgments, and only one of them is getting serious at this point. We have to file before December or the judgment could result in a contempt of court hearing and a warrant. So we will file before then. My point is, you CAN buy time, with a little luck. You will have to be prepared for endless calls, threats and letters, though. If you can stand the stress, it can be done.

Good luck, and I do hope you can improve your situation whatever you choose.

[nc73]

nc, that's why this is so frustrating b/c i dont have nearly the amount of debt that others on this forum have, but i still can't make it. i live in a very, very small town so my housing options are very bad. i pay 1400 a month rent, and it's the lowest rent i could find for a reasonably sized apartment. our studios here go for about 1000 to 1250 and they are tiny. i can't reduce my living space any more than i already have. i've thought about leaving this city and moving elswehre, which would mean a lower paying job but maybe better housing opportunities.

this is very frustrating indeed.

I just find it hard to believe that there isn't cheap rent somewhere. Someone must have a spare room. It doesn't have to be long term just until you can pay off your debts and be in a better position.

[StartingOver08]

[QUOTE=nc73;347639]I just find it hard to believe that there isn't cheap rent somewhere. Someone must have a spare room. It doesn't have to be long term just until you can pay off your debts and be in a better position.[/QUOTE]

This is excellent advice. There are only two componets to the equation: Income and Expenses. Your choices are limited to increasing your income; reducing your expenses or both. That is it.

To file over $6k of debt does not make any economic sense. You can negotate it out better than filing BK over $6k. How much is your car payment? Insurance?

If you look at either getting a roommate or renting a room that will solve your immediate problem with the unsecured debt. Or you could get a part time job to pay the unsecured debt. Maybe the issue is the car payment. You could get a used car for cash and not have that car payment.

[EbbTide]

$1400 a month for rent? Even in Miami.. that is way over market! The rental market all over the state of Florida is in the dumps. Take a look at Craig's List. Rent should be no more than 35% of your income.

You will need to move. You will also need to establish a strict budget.
$6000 of unsecured debt...what are the mininum payments each month?
My minimums on $35,000 of unsecured and my car loan of $30,000 only totalled $1700 a month.

How many more months on the lease? Once the lease is up, what were you planning on driving? What's the monthly lease payment? If it's over $400 a month, you are in too much car for your income.

If you can save even $400 a month by moving, that would make a big dent in your credit card bills!

I've been in your shoes... only difference is.. my income went down by 70%... and the expenses went up... to the point... I just said I'm not doing this anymore. I now own my car free and clear. Don't particularly care for the neighborhood I'm living in, but the rent is below market and I have a nice landlady. As for the unsecured debt.....well it ballooned to $87,000 with interest and fees.......and I filed Ch 7.. because short of winning Powerball, with this economy there was no way I could repay $87,000. I stopped using credit cards 5 years ago when I lost everything in Hurricane Charley. I've been strictly cash ever since. No cash.. I don't buy it. It took me 4-1/2 years to furnish a one bedroom apartment.

You CAN do it. It's just going to take willpower and a little sacrifice on your part.