Please help me.

[Bigjay187]

What is worse filing chapter 7?

Or doing one of the deals where a company help get you dept settled for .40 of a dollar?

Will these affect my ability to get student loans?

How long before I could get a buisness loan?

Thank you for any help y'all can give me.

[Viper]

Need more information to be able to help you. How much debt? what kind of debt? what kind of business loan? what state do you live in?

Lots of variables here, fill in the blanks.

-Viper

[Bigjay187]

Live in pa
21000 in credit card dept only, I have a car loan but will not fill on the car. I owe 8k on the car but its only worth 6k. I also have student loans but can't fill on it.

Buisness loan not sure of the type but would be in the 100k range after collage about 4 years from now.

[Viper]

Well for starters, if you choose to file bankruptcy, you do not get to choose which debts you want to include/exclude. You MUST list all debts regardless if they are dischargable or not. Still need more information.

Do you work or go to school or both?
married?
how much do you earn?
how much in the bank?
own any other assets (house, land, boat, etc...)?
have you started paying back student loans? what is their status?

-Viper

[Bigjay187]

I work, but I will be returning school. Single. My current job is at 32k per year but this years taxs will show only 18k income. I just borrowed money from a friend so I have about 2500 in the bank. Don't own anything accept a truck worth 500 bucks. Student loans I just started repaying currently owe 6600 but its with the gov.
Why won't I be able to keep the car?

[StaciMM]

If you file BK-you won't be able to pay your friend back until after. (The trustee will make your friend turn over anything you pay to the BK court.)

Whether or not BK is for you is a simple math equation. Take your monthly take home pay, deduct expenses (do not count credit cards as an expense) and if there is ~$100 left over, ch. 7 is NOT for you. When calculating your expenses, think about the small things as well as the big things. Consider expenses that happen occasionally, such as renewing your car tag. For things that you don't do every month, calculate an annual total and divide by 12.

If you do have some money left over, and you are already in collections on your accounts-don't pay one of those settlement companies. Instead, set the $$ you have extra each month in a savings account (as long as you have no judgements) and do the same-without paying a fee. If you have a $2000 debt, when you get $600-800, call and offer them $500. They might offer to settle for a little more than you offer them. Get it in writing, but be aware that you may end up paying taxes on the amount that they forgive.

[StaciMM]

No one said you can't keep your car. What he said was that you have to include everything in the bankruptcy. If you owe it-you list it. For a secured debt, you would have the option of reaffirming it (keeping it and agreeing to be responsible for it after the BK) or surrendering it.

The BK petition should be your complete financial picture.

[Lightning]

How do you plan to support yourself while going to school? if you file bankruptcy, you won't have credit to supplement your student loans and income. How much do you currently owe in student loans, and how much more do you plan to borrow?

How do you plan to repay all this student loan debt if you're then going to go right out after graduation and borrow more to start a business?

You need a better plan. There's a whole lot more involved in qualifying for a business loan than your personal past credit. You'll at least need a solid business plan.

[StaciMM]

Very well said, regarding needing a better plan. Perhaps after school, plan to work for someone else for a few years, to save and better preapare for starting your own business.

I don't think anyone should ever plan to support themselves with credit, whether you are in school or not. Relying on credit is never a good thing.

How do you plan to support yourself while going to school? if you file bankruptcy, you won't have credit to supplement your student loans and income. How much do you currently owe in student loans, and how much more do you plan to borrow?

How do you plan to repay all this student loan debt if you're then going to go right out after graduation and borrow more to start a business?

You need a better plan. There's a whole lot more involved in qualifying for a business loan than your personal past credit. You'll at least need a solid business plan.

[Bigjay187]

If I don't have C/C payments I can have a job and go to school and make ends meet. You don't have to pay for student loans until 6 months post grad. The buisness loan would be after school and 2-3 years in the field.

What is worse it one or the other.
Filing BK Or going into default and settling with the C/C companys?

[StaciMM]

That is a personal decision, and no one here can really tell you what you should do. It would be like going to a stranger and asking them for advice on who you should marry.

We can help with info, and help you to understand the process. You have to evaluate that, consider what your ability to pay is/will be and decide what is best for you.

If I don't have C/C payments I can have a job and go to school and make ends meet. You don't have to pay for student loans until 6 months post grad. The buisness loan would be after school and 2-3 years in the field.

What is worse it one or the other.
Filing BK Or going into default and settling with the C/C companys?

[Bigjay187]

I realize your not trying to tell me what to do or whats best or whatever.
If your a bank manager and you look at my credit report and see
Bk 5 years ago or see went into default on 21k in C/C debt and then settled.

What one is worse or what one is going to make them say no to a loan?

[StaciMM]

I honestly don't know the answer to that, and even among 'bank managers' different ones may have different views.

Bottom line-if you think you'll have the ability to resolve your debts somehow, BK may not be right for you. Generally, BK is a last option.

[Bigjay187]

Ok fair enough

[StopNAF]

It depends!

If you do settlement you have to have alot of cash flow and have the ability to react quickly and then your account is shown as settled NOT paid as agreed. Unless of course you negotiiate with the creditors yourself before you pay them off you need to get in writing that your account is paid as agreed. If you don't your credit will scarred further.

Settlement charges a commission on the amount that they save you, but keep in mind your credit card balances will rise quickly as well. In other words their not really saving you anything and you are paying them for nothing.

Additionally, the credit card companies can file an I-9 leaving you responsible at tax time!

Try to negotiate with your creditors yourself and avoid settlement, especially if you have no judgements pending.

If you have any substantial income your creditors will see that in your credit report and that usuall determines if it is worth pursuing.

Which one is worse. That depends on what worse is and your situation.

I have 2 creditors seeking summary judgements (MBNA and Citi) and these guys are aggressive.

CH7 BK will save my butt!