thinking about BK..need some advise!

[raykinder]

Thanks in advance!!! Going to try and make this as brief as possible;

I haven't worked in a year, ate up savings and rearranged debt, had family help with over laying bills. As of today 22k in unsecured debt. If I factor in money parents have lent me it's 2-3k more(some in straight cash some via checks/direct payments) The last few months i've been using my CC's to live period.

Now I need to move, which will increase my month to month bills(rent etc) by about double. There is no way around this. On the flip side hopefully this will give me access to work. I've read that you can't file for BK unless you've lived in same place for 6 months. I see moving as the only option The move is in state(pa) but will take me across the state, so commuting for court seems extreme

I have no serious education and the job i'll be looking to get will be paying roughly 25-28k a year(service industry so no set amount) I should if all things go properly start pretty much right after the move. I've seen some posts about maybe wanting to wait to have income until after BK ? I don't know how i'm going to eat etc etc without working asap. This amount of money is under the median of the area i'm moving.

I have no assets, no expensive furniture or anything. I also have no car.

I'm current on all payments and thanks to mom haven't missed any in a long long time. However even if I made the maximum I could expect with a new job, after factoring in needing a car sooner rather than later, making the minimum payments on my debts seems unlikely. Rough figures of 1400+ in month to month expenses, plus the min. CC payments would put me really really close to over the max earnings potential. Unless I would be expected to work more than 40 hours a week.

Now for the questions

Will I qualify for BK ? Is this a route I should pursue? The idea of spending the next nine years hand to mouth at best is unbearable. Even at lower interest rates it seems like 5 years is gonna do me in..Is chapter 7 viable?

I'm current on all payments, should I stop paying now or wait until I file?

I will need to purchase household items for my move. Bed, lower range tv, lower range PC, all sorts of small items, food. All those things total +/- 1800. Would it best to buy those things now, and no longer pay? Buy and try to make min. payments for a couple of months? Or could I have a family member "gift" me those basic comforts. Would having someone purchase those things be cheating the system, from a legal standpoint?

Should I look into a car purchase while I have good credit? Specifically while I haven't missed any payments...Is there a cap or would there be any questions If I were to buy something on the sportier side of economical. Not a BMW but not a smart car. Would it look better to buy used or new? That said I don't know how easy it will be to get a car without a job.

Since I have no money, no assets, and currently no job is legal aid a serious option?


whew...a lot to digest there. Hoping to get a better direction on my next step. Thanks so much for any help!

[keepmine]

First thing you do is stop paying all cards and stop using the cards.
If Mom is willing to buy you some pots and pans that's no problem. It's not against the law to get some help when you're down and out.
We always advise people to get there transpotation needs arranged before tey file. How are you going to buy a car with no money? Best bet is see if you can borrow one form your parents until you get a job.
If you move instate, you should be able to file in whatever district you live. In fact, 6 months is only part of the rule. It actually says, wherever you spent the majority of the previous 180 days. So, on day 91 at your new address you could file.
Frankly, you're not ready to file bk. You can't support yourself post bk and you have no insurance. What happens if you file bk and 6 months later get seriously ill with large medical bills and you already played the bk card?

You have nothing anyone can take. Don't be in a rush to file. Set this thing up and file on your terms.
First thing you do is get some sort of job now. Even if it's flipping burgers, some income beats no income. Look for fulltime work after your shift.
I'd be leary of a long move away from your support system without a job in hand.
How about spending a week job hunting in the new location before you move?
You really need to spend some more time thinking about this. Bk will always be available after you get a job and can support yourself.

[raykinder]

Thanks for your thoughts..

I guess i'm curious if I find a decent paying job will that affect my ability to get my debt's discharged? Would it be more beneficial to file up front with no income, rather than have income and then be forced to pay?

Would it be a bad choice to purchase the things I need to make a habitable house, now. Fall behind on payments while saving money working and then file? I know it is a dick move, but I'm more worried about the legality more so than the morality.

As far as the car situation goes, i'm sure that I could get a car with little or no money down. I could borrow a down payment if long term it will save me money with interest rates.

I'm wondering if buying a car, pc, etc, and falling behind on my CC payments for 4-5 months would be in my best interest. Then filing for bankruptcy after having my job situation/rent/utilities/transportation settled.

thanks again keepmine and anyone else who could lend a hand, this is a very stressful scary situation.

[Overmihead]

22K is not a lot of debt really, relatively speaking. Remember, filing BK again will be out of the question for a long time. I'm not sure how old you are, but I gather you are young, able-bodied, willing to work, and without a spouse/dependents. And you have family willing to help you out a bit. If I were in your shoes, I would not file BK. I would focus on finding work asap, while keeping my eye out for even better employment opportunities and/or working my way up, and live as cheaply as possible while paying down the debt. If you are looking into a service industry position, does that really require a move? Is it an option to live with family for a while and find a job in your area to get back on your feet financially? Moving is expensive. Really consider the position you are going to put yourself in if you file, and think about what you are willing and able to do and/or sacrifice to get yourself on solid ground with an unblemished credit history. I don't know all of your specifics, just something for you to think about.

[raykinder]

Thanks for your advice overmihead!

I'm not that old but at 28 I feel like i'm not that young either. True I'm without dependents. I feel like the prospects for work as far as advancement are slim to none, so my salary range is very limited. Even with a move to "management" it really wouldn't be an increase in pay.

The move was predicated on previous living arrangements being unable to continue aka a break up. Moving offers me more options for work, but brings my monthly bills WAY higher. The current situation wasn't going to work, sadly. Living with relatives is also, sadly not an option.

I'm just not sure if i'll be able to make minimum payments let alone truly make a dent into the balances with the interest rates as high as they are(and they aren't defaulted or anything yet)

[forgotten]

Should I look into a car purchase while I have good credit? Specifically while I haven't missed any payments...Is there a cap or would there be any questions If I were to buy something on the sportier side of economical. Not a BMW but not a smart car. Would it look better to buy used or new? That said I don't know how easy it will be to get a car without a job.

Since I have no money, no assets, and currently no job is legal aid a serious option?

First, you need to stop using credit. You have no job and no reasonable ability of being able to pay it back (according to you).

If you can't afford the credit card payments and need the money to live on, then stop paying them.

No, you should not finance a car. How to expect to make car payments? You just aren't going to be able to afford it. Since your mom seems willing to help out, if you *need* a car, see if you can borrow(gift) money from her for a CHEAP car from craigslist.

You have no need to file bankruptcy right now. Stop paying your unsecured debt, if you happen to be sued they can't collect (no assests, no job).

You can revisit the idea of filing when you are settled down, employeed, and able to support yourself without credit.

You don't really have many other options.