Should I file or not? Help me decide.

[jacko]

So, you get a judgment, big deal. I have two, from nearly two years ago and they have yet to get a penny from me. If you have low income, no health insurance and that your assets fall with in the state exemption amount, there is no reason to file yet.

One other thing to consider. If you do get judgements, I believe they can be "renewed" or extended. Not sure if that's the term, but I believe they could drag out as long as a BK. So when you do want to own something down the road if and when you get on your feet, it could be up for grabs at that point in time.

Not likely to happen but it could.

I'm sure you will make the right decision for you.......for me, BK was the way to go but my debt was double yours. Good luck!

[jacko]

What are you worried about than? You make little money. The first $290 in weekly earnings are exempt from garnishment. You still owe $2000 in back taxes which can't be discharged yet and will survive a BK. They still could come after you for a garnishment despite a BK. You are looking at this wrong. You need to think about your needs and save every penny to live on. I have over 60k in CC and medical debt, and there is nothing they can do to me due to my low income.

I see. Well I don't foresee that in the near future, and don't really think like that. I am constantly looking for full time employment, so I don't expect to stay in this situation forever. If I do then that might be the only thing that will put me in the hospital since it is unbearable.

The only problem is even with full time employment, I don't see myself making more than $2000 a month before taxes or take home ~$1600-$1700, which is going to be exactly what is going to cost me to rent a place, pay monthly bills, food, gas and live on my own again. I can't go back into sales, which is the only domain I can earn a decent living and the only thing I have experience in, as I have come to the realization that the stress in that domain was my biggest health hazard. Unfortunately I have no choice but to live on much less for the foreseeable future, since I will be lucky to land a job paying even $12-$13 an hour with no experience until I can work my way up in a different field, or go back to school.

The amount, 24,000 may not seem a lot to some, but to someone that is making $1000-$1600 a month, that's the equivalent of $80,000-100,000 to someone that's making $5000 a month. After I pay my share of current bills I am left with literally $100 for gas and food to last me an entire month. When filling out the expenses form in the BK packet I actually had to leave out expenses just so I wouldn't go under 0. I owe $2000 in back taxes which I have not started paying them, and do not qualify for a discharge, so I can't even start making payments on those until I increase my income.

I'm having to file myself and make payments on the BK cost because for the past year I cannot even save up $1500 to pay an attorney to do it for me.

[AlSmith2011]

Jacko I understand that, but part of the reason I want to file is to begin re-establishing credit, and figure out the quickest way to get back to where I was prior my divorce. If I get a judgment that is the equivalent of filing for BK as it stays on your report for 10 years. Plus you also have to deal with the fact that you are still legally responsible for all your past debt and they can hound you.....well....forever.

My mother took that route. She didn't file. And has had horrible credit for the past 8 years. 480 beacon or lower. This year everything has been wiped out. She qualified for a credit card, and now has an 850 Experian FICO. From last year to this year she went from a total bust to a prime customer(kind of crazy how that works if you ask me.) But she has been living paycheck to paycheck, under the radar, renting without the ability to finance anything and basically giving money away to someone else for the past 8 years and even now still gets collection calls for accounts that are 10 years old. They can no longer touch her credit, but they can still legally call you or attempt to collect. She has good credit again, but at what costs?

PS: I have every intention of paying back the IRS, BK or no BK. That's one collector I don't mess with. I just have nothing left over at the moment to start making payments.

[disconapper]

I agree with you Al, it all depends on how you wish to live your life the next couple of years.....judgments are bad news...

[jacko]

So you want to establish a debt score again. Are you planning to purchase a home? I have not used a CC in 3 years and it seems your mom did fine with out them either. Before you think of re establishing your debt score again, you may want to look at reality that your previous high income is a thing of the past

Jacko I understand that, but part of the reason I want to file is to begin re-establishing credit, and figure out the quickest way to get back to where I was prior my divorce. If I get a judgment that is the equivalent of filing for BK as it stays on your report for 10 years. Plus you also have to deal with the fact that you are still legally responsible for all your past debt and they can hound you.....well....forever.

My mother took that route. She didn't file. And has had horrible credit for the past 8 years. 480 beacon or lower. This year everything has been wiped out. She qualified for a credit card, and now has an 850 Experian FICO. From last year to this year she went from a total bust to a prime customer(kind of crazy how that works if you ask me.) But she has been living paycheck to paycheck, under the radar, renting without the ability to finance anything and basically giving money away to someone else for the past 8 years and even now still gets collection calls for accounts that are 10 years old. They can no longer touch her credit, but they can still legally call you or attempt to collect. She has good credit again, but at what costs?

PS: I have every intention of paying back the IRS, BK or no BK. That's one collector I don't mess with. I just have nothing left over at the moment to start making payments.

[AlSmith2011]

Yes I do plan on eventually purchasing another home. And I understand that my previous high income is a thing of the past, but that's only currently or in the foreseeable near future. I am 29. In 5 years I do plan on being in a different place and back on my feet financially just hopefully in a different field.

My mother did fine, sure, but she is working under the table, no health insurance, renting, and hasn't secured or prepared herself at all for her retirement. She has nothing and I know who it's going to all fall back on eventually and who is going to be taking care of her so I BETTER be ready in 5 years. I have no choice. One way or another I have to get back to making good money again.

[lillymarlene]

Al, I agree with what you said here, "The amount, 24,000 may not seem a lot to some, but to someone that is making $1000-$1600 a month, that's the equivalent of $80,000-100,000 to someone that's making $5000 a month" That isn't a lot of money, but I don't blame you for wanting to do something to stop the "financial bleeding" anyway you can. I think you are doing the right thing to either file or somehow settle. It seems that some of these debt collectors just don't give up, though as you said, they can't really do anything, but they keep after you forever.

[oicu812]

I think you should make a poll. graphs and pie charts dont lie.!!

Maybe let it ride untill you actually get a summons for a lawsuit.and file a answer (check creditinfo,com for sample answer) that will give you the time to file bk or fight the lawsuit.I read somewhere SOL plan rarely works.

Maybe debt consolidition plan...debt negoation plan. cccs or somthing (for my story this was not an option).

On a BK website you will most certianly get advice TO file...try and ask the folks on Dave Ramsey's website..they drink a whole different kind of juice over there.

When I figured out what I had to do after all the facts where presented.I had a great sense of relief and when I actually file ch13 the relief will be permanant.

and if the one lesson I have learned and will advocate for is never use/abuse a credit cards.they are truely evil

and good luck on what ever you decide

[AlSmith2011]

I think you should make a poll. graphs and pie charts dont lie.!!

Maybe let it ride untill you actually get a summons for a lawsuit.and file a answer (check creditinfo,com for sample answer) that will give you the time to file bk or fight the lawsuit.I read somewhere SOL plan rarely works.

Maybe debt consolidition plan...debt negoation plan. cccs or somthing (for my story this was not an option).

On a BK website you will most certianly get advice TO file...try and ask the folks on Dave Ramsey's website..they drink a whole different kind of juice over there.

When I figured out what I had to do after all the facts where presented.I had a great sense of relief and when I actually file ch13 the relief will be permanant.

and if the one lesson I have learned and will advocate for is never use/abuse a credit cards.they are truely evil

and good luck on what ever you decide

Thanks I will check out that website too.

I never really abused my credit, though I admit I was tempted after my divorce. I already knew how important and fragile credit is, had learned everything I could about it, and shared it with my family. I was drilling it in their heads. "In this country you are a dead man without credit. It's the most important thing".

All I had was 4-5 credit cards with 10,000 limits but never carried a balance on none of higher than 3,000(always tried maintaining them at 35%) and most of those were from my wedding, a few balance transfers and a bedroom suite for my new house. I tried paying what I could by myself for almost 2 years and didn't really start missing a payment on anything until a year and half after she left and I lost my job.

The only problem was me putting my faith in my family that didn't believe in the importance of credit, and thought they would care about it just as much as I did and not abandon me and leave me in financial ruin if relationships became strained. I never thought if I ever split up from my ex-wife that it could not be done amicably, or that she would not at least care about how she is leaving things behind, but I was dead wrong about the person I lived with. She just took off, racked up her CCs when she got to Europe, because she knew she would not be responsible for anything. She also didn't care about what would happen to me here. I mean I had complete trust in her, even had a discussion about this 2 weeks before signing that if things ever got bad between her and I that we would end things amicably and not ruin each others lives and credit. I trusted and got burnt. That's all there is to my story.

[debee]

I think jacko's point about waiting until you have health insurance is valid. If you got into a car accident on the way home from your 341 or came down with appendicitis, you could end up with a bigger debt than you have now and no way to ever get rid of it. It's happened to forum members before. Maybe you could find some insurance coverage on your own until you land another job.

As for the rest, The #1 regret of almost every person who has ever filed bankruptcy is "I wish I'd done it sooner".

[AlSmith2011]

Thank you everyone for all of your input. I'm leaning even more towards filing now but perhaps I should wait a little bit longer and see if I can land some full time employment with health insurance. I'll just make sure to have everything ready just in case a judgment or lawsuit comes my way.