Is Bankruptcy right for me and do I qualify?

[rybo2k7]

Hi everyone, im new here so I am posting for the first time. Thanks to all who read my post and take the time to reply and if its in the wrong section I apolgize in advance.

Im 22 years old and I have a few debts right now. I owe for an old phone bill with rogers which I also co-signed for my ex girlfriend and got stuck with the bill of course which ran up to 4700 dollars now. I also owe for a payday advance which now with interest is about 2000 dollars. I have my car which is financed and I still owe about 6000-7000 on and its not even worth that itself. To make matters worse I just lost my job and was laid off. Im finding it very tough financially. I have to be out of my parents place sept 1st and Im starting a new job next week.

Can anyone give me some advice here on what to do? I would really like to file and hopefully someday start over with a clean slate and get credit counselling. Thanks everyone have a great night.

[jeep75]

You shouldn't file bankruptcy for $6700 and two bills that's for sure. You should be able to settle that phone bill for about $470 with a collection agency when it gets that far. I don't know anything about payday loans to help with that.

[bcohen]

He's not thinking about filing for bankruptcy over $6700--the total debts are around $13k. Nevertheless, in your situation I would not recommend to file, at least not now. Suppose that for whatever reason, the job doesn't work out, and you therefore need to "skip out" on your house/apartment lease, utility bills, and other debts. Or suppose that in the time when you start working and don't have health insurance you become sick or are injured in an accident.

If you've already filed for BK then you're stuck with these debts, and you can expect the collection efforts to be really aggressive since the creditors know you can't file again for 8 years. On the other hand, if you haven't already filed, then it's no problem to discharge these additional debts in BK!

That's why for most people it's smart to avoid bankruptcy until/unless your situation stabilizes and you have assets to protect.

[kornellred]

My 22 year old son just got a Chapter 7 discharge. It was definitely the best thing for him. Best to learn your lessons early - the debt you have will never go away and will only get worse as time goes by.
I am in my 2nd bankruptcy myself, and can tell you from experience that bankruptcy is not anywhere near as bad as most people think it is. Of course, I am in my 60's and more than a tad cynical.

[sunshinepa]

Well, you certainly would qualify right now however, you don't say how much the new job will pay. I think the other folks are right and you should not file at this time. Take the time you still have at your parents and save money. Apparently, you will need to find a place to live and pay rent or do you have another place to go?

Right now you are pretty much what is known as "judgement proof" because you have nothing for a collector to take. As long as your state does not have wage garnishment, I would not recommend filing at this time. Some folks take the position that they can wait out the SOL, you may want to think about that. Or, call the phone company and work out a deal. The payday loans....ugh. If you haven't changed your bank account, do it because it sounds like you can't afford it and won't be able to in the future.

As far as BK, only you can make that decision but in your shoes, I would wait!

Good luck whatever you decide.