24 year old New Yorker

[BrewCity]

I'm not going to suggest what you do financially but as far as a car, if you have even the slightest mechanical knowledge, find yourself a rust free Geo Metro from the mid 90's. For a car in decent shape your looking at $1-3k depending on where your get it and anywhere from 30-50 mpg depending on what engine and transmission it has. Our 4 door just had the frame rust out this summer and I picked up a clean '97 two door hatchback for $800 and I love it, it's like driving a little go kart, no power windows, locks, mirrors or even power steering.

[ValleYum]

Oh, *I* wasn't necessarily saying that mountanddo - just telling you why I think others may say it and you see it a lot on here. I would hope they just want everyone to consider all sides - that is what is great about discussion forums.

Folks just want to make sure you really need to throw a grenade if a bullet will do the same thing - and to be perfectly honest some folks just have no concept of how little money some people make and live on.

EVERYBODY'S need for BK is different and is for a different amount of money.

~~~~~~~~~~~~

Link to the $19.99 PDF version of the book, How to File for Chapter 7 Bankruptcy:

http://www.nolo.com/products/how-to-file-for-chapter-7-bankruptcy-HFB.html

PS: Filers can now use the Federal bankruptcy exemptions in New York State - they are very generous with a large Wild Card amount in lieu of a homestead exemption since the OP has no home.

[jaker2731]

The car situation is not as bad as you think, I have a 2009 Mazda, Its just that as part of my fresh start I'd also a new car that would also help me start being independent with my credit, insurance etc.. I don't necessarily need it. Sorry about the confusion.

[BrewCity]

IMO then, you need to reconsider where your priorities are. A car is a machine that gets you from point A to B, that's it.

[jaker2731]

Brewcity, I know and I appreciate your suggestion on the car, I'm sorry if I made it seem like the reason I wanted to file for bankruptcy is solely because I want a new car, the car is the least of my worries, I'm turning 25 soon I want to establish a decent credit history. Its hard not having any credit cards at all and having to have everything under someone else's name just because I made a childish mistake in the past. Sometimes I sit and think what's gonna happen when I'm ready to move out or if I have a financial emergency and don't have enough cash on hand where am I going to go?. I can't rely on my parents to be there for me everytime I'm in a bind and need something to carry me over until my next paycheck I hope everyone here see's more than just a person trying to find the easy way out, I've tried to do right by paying everything back, but capital one won't accept a payment plan because the debt is in judgement, all they will do is either Garnish or take the settlement offer in full which is in the mid 7k which I don't have.

[mountanddo]

Everybody's priorities are different. To some a car is a prized possession and something some get great joy from. I certainly wouldn't fault anyone for that. Just like some people like the security and comfort of owning their own home. I like the fact that I can move at anytime *aside from my lease* and not be chained to one place.

[ValleYum]

Everybody's priorities are different. To some a car is a prized possession and something some get great joy from. I certainly wouldn't fault anyone for that. Just like some people like the security and comfort of owning their own home. I like the fact that I can move at anytime *aside from my lease* and not be chained to one place.

Girrrrlll - I can't wait to be a renter again! It gives us the freedom for hubby to apply for jobs in other states, too (maybe even closer to my grandbaby!!)

[Gonzo]

Brewcity, I know and I appreciate your suggestion on the car, I'm sorry if I made it seem like the reason I wanted to file for bankruptcy is solely because I want a new car, the car is the least of my worries, I'm turning 25 soon I want to establish a decent credit history. Its hard not having any credit cards at all and having to have everything under someone else's name just because I made a childish mistake in the past. Sometimes I sit and think what's gonna happen when I'm ready to move out or if I have a financial emergency and don't have enough cash on hand where am I going to go?. I can't rely on my parents to be there for me everytime I'm in a bind and need something to carry me over until my next paycheck I hope everyone here see's more than just a person trying to find the easy way out, I've tried to do right by paying everything back, but capital one won't accept a payment plan because the debt is in judgement, all they will do is either Garnish or take the settlement offer in full which is in the mid 7k which I don't have.

I understand completely. I did something similar when I was young. Sadly, you have limited options. If you want to start repairing your credit, the judgment has to be resolved. And there are only 3 options: bankruptcy, pay their full settlement, or keep paying via garnishment.

I agree with the prior poster's comment about never knowing when a greater catastophe will occur. God keeps that a secret.

I only asked about whether Capital One sued versus a junk debt collector because these collectors, as you probably know, only pay "pennies on the dollar" for delinquent accounts and often can be enticed to settle for something more reasonable. Dealing with Capital One as the plaintiff is a bear. Capital One is tough even before judgment.

You can still try building up your credit with secured Visa/Mastercards.

Much luck.

[JackBondLove]

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

I would concur if it were that you did not have any delinquencies. If there were delinquencies already, I would use a lower threshold. Are you planning on buying a home soon? A lot of mortgage underwriters don't look so poorly on folks who get delinquent, but make it up eventually - and really penalize a BK filer for quite some time. The same goes for a car loan - although you could still get such a loan, but would pay through the nose for it.

[jacko]

Since you are living at home, you should reset your w2 exemptions to zero for max deduction and a extra $100 per pay period. Garnishment is determined by after tax deductions.

Hi, 24 year old New Yorker here, Capital one approved me for a card when I was 18 with a $4,500 credit line which I never paid of course and grew to about 8k, over the years a few other smaller card and cell phone bill debts, total debt now about 15k, Capital one sued me and the marshal manages to find me every couple years where I'm working and starts garnishing, about 5 months ago I started working at a job were i make and will hopefully make every more than I was ever making.. 35k now with lots of room for growth. Not only do I not want to start getting garnished again but I also want to start rebuilding credit, as I want to buy a car my own car and not be turned away everywhere I apply for credit. Any suggestions?

[keepsmiling]

Those fees are probably for a 7. If you don't get yourself some expenses, you won't be able to do a 7, even though you are under median. A 13 is more but you can roll the fees into the plan. Also those fees probably don't include the filing fee. You must not be in the city, because those fees are low. Lowest I found in NJ was 1800 plus fees.

Lots of people file pro se but you will have a lot of homework to do. The tt will see that you have lots of DMI. I don't think you are a slam dunk. And tt's tend to go hard on pro se filers; you 're going to have to prove payments to your mom. Could be sticky.

[keepsmiling]

Taken from another angle:
You are actually filing over 7K, since that is your offer. Minus 2k atty's fee's. So that kinda equals 5K. Now we are talking pretty small numbers.
That's not a bad offer, actually. You will probably have to pay some taxes on it next year tho.

I am not one who agrees with what that couple who owed 100K and paid it off by killing themselves working but this is totally different. You are a young guy, plenty of time to save up, sounds like a bright future. You are living at home and your expenses are 200/mo. With your salary, you ought to be able to either save up 7K pretty quickly and settle. Tighten your belt for a few months or deliver pizza and take the settlement. You don't need a cannon when such a small bullet will do.

Personally, that's what I'd do. I doubt you will pay less than that in a 13.

Then save up some more cash and buy your car that way. You won't have to worry about equity and exemptions.

[helpmeout]

I don't pay rent at all.

Then why not work out a repayment plan with the creditors? With it only being around $15K, you making around $35K and having very little living expenses, you should be able to pay it off in a relatively short time. With a household of 1, no rent and making as much as you do, you will be in a Chapter 13 anyway.

[helpmeout]

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.

If you think paying off debt around $15K on a $35K income while you have very little living expenses is unrealistic then you have issues that a BK will not help with. You need to get more realistic regarding finances, debt and budgeting.

[BKAttyMI]

I agree with everything said here (well, mostly).

My questions are: Where the heck is all of your income going every month if you have so little in monthly expenses? Entertainment? Going out? Will you be living with mom forever? Renting your own apartment is a good way to cut down disposable income. It sounds like you should have around $1,000 a month disposable income right now, where's the money going?

Once you have a judgment in place, I find settlements are very hard to do. Definitely sit down with a few attorneys.