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Buying a cheap vehicle before filing and school payment on credit card. Also, advice

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    Question Buying a cheap vehicle before filing and school payment on credit card. Also, advice

    Hello,

    I'm new here, but I'm still thinking about filing... but had a few questions...

    I've been reading up on filing for bankruptcy and generally understand what is required...

    but there are a few things..., and if you could read up on my situation below and see how I should handle it...

    1) If I bought a cheap car for $1300 before filing (to act as my new driver so that I can get rid of the other one under the loan), would that be looked down upon by the trustee?

    2) I just recently paid $1300 something on my one credit card to pay for classes at my local school... if I paid that card off before I filed, would that look bad? As in preferential? My idea is that I want to pay that one off because I used it knowing that I might have to file in the future, and think that it's correct and fair to repay the company back.

    Regarding my financial situation:

    Furthermore, I'm in dire straits right now because I had taken a trip to the Philippines in late 2009 and early 2010... and spent around $3000 on my one credit card... (but the idea of bankrupting to get rid of it wasn't my desire) - the whole trip revolved around a lady I had met on the internet and wanted to pursue a relationship, and it actually worked for a time. Furthermore I had found a house on eBay and bought that on my credit card as well (sounds bad, I know), but the desire of the house was to get it ready for when I was going to get married to her (and when she had come over and had been authorized to work, she would have made contributions to the household income)... yet there were problems between us and she broke up with me shortly afterwards and the promotion I was expecting to get at my job, fell through because I angered the boss (though it would have been an assistant management position at a fast-food restaurant, I thought I would have had enough weekly hours Plus around $10 an hour, and that would have covered the credit-card expenses). The house was way too bad, and I ended up giving up on it, and sold it. But the money I got from it, left me about $10,000 under (the house was $12,000 + some fees, and taxes paid, plus supplies to fix the house, and then resold for $5000 [the house really was probably only worth this much anyway]). The current owner finished paying the land contract in March of 2011 and I transferred ownership over to him. However, because I got so little for the house, and had to use the money from the land contract payments to pay off other debts, most of the debt on that one credit card, never got paid... so in effect I'm still on the hook for a huge amount (besides my monthly payments made).

    Currently, I work at a good job... but it's part-time and for a home improvement store. We get great hours during the later spring, and during the summer times... but things slow down in the fall, and drop dead the day after Christmas. So what should I do? I have four outstanding credit cards, plus student loan payments from a previous degree, and my car payment, that are around $53-56,000 total. Obviously I know the student loans cannot be gotten rid of. But if I file, will they lambast me for buying the house on my credit card? Can I buy a cheap car before filing, s I can give up the other one? What about the debt I put on the one card to pay for my classes for my new degree? Once the fall hits, and we get into winter, my current job will dwindle to one day a week, at about 4-7 hours... my manager at the restaurant job (which I never quit) has only promised me one day a week from now on. He hated it when I made my other employer primary. So between the two jobs I might push 20 hours or so a week. But credit card payments, student loans, car, insurance, food, gas push me to about $800+ per month (and even then, I still live at home with my parents, who would like me out by next summer )

    #2
    Why the hurry to file? You have nothing anyone can take.
    Were I you, I'd concentrate on just finding a better job{s} . After all, you still have to support yourself post bk and from what you've posted, it doesn't matter if you file or not you'll still be living at home next summer.
    I'd let all that credit card debt go and the car loan. Keep the student loans current.
    I'd wait about the bk until you have fulltiome hours with a job that offers health insurance benefits.

    Comment


      #3
      Again, I second 'keepmine' post. You have enough time between all the large credit card withdrawals to not look like abuse. Pay the one you want off if that makes you feel better. Once you file, you will lose it anyway. Start a small savings for essentials and your lawyer. As 'keepmine' said, what do you have to be taken from you?

      Stop paying on all your cards (except the one of conscience) and put that towards your savings. Remember in time they will dun you for the payments then sue. File once you get papers for a suit. After about 90 days from there, you are free of debt and with a better job, will rent a place away from parents. You already know they would like their nest back and you are a bird that has already learned to fly, so get on your way. Sounds like you are a pretty sharp young man and will do well. 'Hub
      If I knew it all, would I be here?? Hang in there = Retained attorney 8-06, Filed 12-28-07, Discharge 8-13-08, Finally CLOSED 11-3-09, 3-31-10 AP Dismissed, Informed by incompetent lawyer of CLOSED status, October 14, 2010.

      Comment

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