24 year old New Yorker

[IamOld]

I think you need a few more postings for PM's :-)

[markinva]

Agree - Avoid BK for now. Budget, live below your means for a while and pay off your debts asap - Pay rent to your mom. Lowers your DMI if things get bad and you really do have to file for BK. What she chooses to do with that $ is her business. Please, please also think about saving in your name for your retirement in a protected, low risk retirement savings account. Never dip into the retirement account for loans or to pay unsecured debts. You have many years to work. Believe me, you will appreciate the savings in your retirement account when you are in your 50s/60s!!! True - 401Ks count as assets but those funds generally are exempt.

[jaker2731]

The only thing is the car is not mine although I pay for everything my mom is the reg owner and borrower on the loan

[markinva]

That's great that u and your mom apparently have a great relationship but u both are prob missing out on potential tax deductions, etc. Are u (or mom) in a line of work where it might make sense to have a car lease in your name instead of a loan? (write-offs) So many variables. At 24, u have your whole future ahead of you! Best professional friend to have is a trusted attorney that is also a CPA. Best of luck to you!

[Gonzo]

Judgments are dreadful, as you know. Many creditors are reluctant to settle after they have a judgment, at least not for any deal that's really good for you. If they know you are working, they believe they can get all the money from you + some. Judgments like this are a trust fund for them.

The amount will keep growing and growing too. Be sure you keep good track of every dime they take from you. Their records are awful - intentionally.

Did Capital One sue you or did a third party debt collector sue you.

[jaker2731]

The idea of me paying off these is unrealistic, I need to buy a new car soon, my credit score is too low, and even if i was to try to pay it off it would take for ever. I don't mean to sound like im looking a easy way out, But I really just want a fresh start and put my teenage mistake in the past.

[jaker2731]

Gonzo, Capital one sued me.

[keepsmiling]

You are in a bit of a conundrum. If your credit is trashed, you may not be able to get a good rate on a car. You will have to see what your car exemption in NY is and avoid paying more than that in cash, plus set up some more expenses if you want to shoot for 7.

Probably, you will wind up in a 13, but maybe with some payment less than what your cc mins would be. Keep reading and posting.

[mountanddo]

I doubt I would file over a $15K total of debt.

I have to respond because I see this A LOT on this board. It all depends on the circumstances, whether you have judgements, garnishments and what your income is among other things. I filed with 20k and it was necessary to do so.

[ValleYum]

I have to respond because I see this A LOT on this board. It all depends on the circumstances, whether you have judgements, garnishments and what your income is among other things. I filed with 20k and it was necessary to do so.

You do see this a lot. But let me tell you a story that may make you understand *why* you see it a lot.

My son is 24 and in nursing school. He waits tables to pay for gas, car insurance, rent and food. He had aged off our Tricare insurance when he turned 23.

He flipped off a 4-wheeler on spring break in March of this year and had a traumatic injury to his pancreas. His medical bills were almost 500k for trauma surgery, ICU, hospital for 2 weeks and aftercare.

So, mountanddo, I think that is why a lot of folks encourage people to be REALLY sure that they absolutely need to file bankruptcy. That one big accident that you just never expect could be your bill to pay if you've filed a recent BK.

The saving grace in my son's situation was the new healthcare law that allowed us to insure 'adult children' to age 26 that started this past January. We added him and his sister to hubby's policy at work. After 3 months of having coverage, he had this horrible accident. Instead of him having to file a BK over these bills - as there is no way any of us could have covered that amount of medical expenses - we owed less than 2k out of pocket for deductibles and co-pays. We are blessed because hubby has fabulous insurance.

I was just trying to show you a real life example of why so many people say don't file over a lower amount if there is any way you can avoid it. Life turns on a dime.

[mountanddo]

There is alway's something "worse" than can happen and it can happen more than once. He could of had that 500k debt and filed bankruptcy and then 2 years from then had another catastrophic event in his life. He'd be just as stuck as someone that discharged 15k of debt and had the same thing happen. After bankruptcy we all start out at zero. Even if I only had 5k in debt I would of had to file because I live in a state where they can garnish my wages 25%. If they took that much out of my wages I would be homeless or living in my car. So one persons 5k debt can be as devastating as someone elses 500k debt. Both people can have devastating circumstances happen right after filing equally. So you have to look at your current situation NOT what might happen in the future. You should never "save" bankruptcy as an option for insurance if things go bad. I do see your point as well but as I've said before, you can't just make a statement like "15k is too low to file" because that is not alway's true.

[jaker2731]

Again thank you all! give me a lot to think about!

[df04527]

I have to respond because I see this A LOT on this board. It all depends on the circumstances, whether you have judgements, garnishments and what your income is among other things. I filed with 20k and it was necessary to do so.

Ditto - we had to also @22k.

[jaker2731]

I think I need to start getting consultations with lawyers, I called one who had a fee of 1400, another well known one had 1700. With these fees I'm even considering filling myself!! Would that be even a bigger mistake???

[mountanddo]

It would depend on how motivated you are to do your own research and go through everything with a fine toothed comb. I hesitate to say your case sounds easy because every bankrupctcy case can become complicated if done incorrectly but if you provided all the information it sounds un-complicated. I'd start out by going to a couple of free consultations to see if you could qualify for a Chapter 7 or a Chapter 13 and then go from there. One of the reasons why I didn't file Pro Se is because I was able to pay my Chapter 13 fees in my plan less the filing fee so I wasn't really saving any money. Also, there is the Nolo book that someone posted you can get a .pdf version for $19.99. Get the book and read it and if you feel confident enough then you could file on your own. Be sure to use this board for any questions you might have during your research.

Good luck!