24 year old New Yorker

[jaker2731]

I could save on the gas and tolls by car pooling to work but I'm not ready to do that yet in a couple months

[keepsmiling]

That's a lot of tolls. Ack.
Did you ever schedule a free consult with an atty?
If not, you should.

[lotsahats]

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

It bugs me that people keep saying this. My debt totals about 15K, and it's just as crippling to me as 50K may be to others. My income and expenses will never allow me to pay it off in this lifetime. If I'm to have any hope of moving on with my life, then bk is the only way to go.

Granted, I did post recently that my husband just received a promotion at work, and I was going to try to pay off my creditors, but no matter how I do the math, it's not going to happen. We are still well below median, even for a single person, and we're a family of three. Some people would be amazed at the shoestring budget we've been living on for the past few years. We were on food stamps two months ago, but the promotion has made us ineligible for them, so now we have to buy our own groceries. We also need to get health insurance, and I don't think I need to point out how costly that is.

Having said that, if I were in OP's shoes--with the promise of a high income and no rent to pay--then I would pay off the balance. On the other hand, if I were in OP's shoes with a 50K debt, I might still be forced into bankruptcy.

The point I'm trying to drive home is that you should base your decision on the circumstances you're in, not just the amount of debt.

[jaker2731]

I spoke on the phone with a atty. para legal and she said everything sounded fine, but to come and speak to the atty. so he can review everything with me carefully

[doni49]

the car and the insurance I don't consider to be just for work so I really only count the tolls and gas for work, and lunch i guess I could bring with me and not have to spend that. As the months go by though my salary is probably going to increase by another 5 - 8k a year.

If you are correct in that assessment and your expenses don't increase, then you can get rid of the CapOne debt within a very short time.

[OhioFiler]

It bugs me that people keep saying this. My debt totals about 15K, and it's just as crippling to me as 50K may be to others. My income and expenses will never allow me to pay it off in this lifetime. If I'm to have any hope of moving on with my life, then bk is the only way to go.

The point I'm trying to drive home is that you should base your decision on the circumstances you're in, not just the amount of debt.

Just for the record, the amount of debt one has is a huge part of the circumstance the debtor is in. Given the immediate cost of filing bankruptcy AND the long term cost of same, the amount of debt is very significant regardless of whatever other factors one considers before deciding to file.

It bugs me that some people keep not getting this concept.

[mountanddo]

Just for the record, the amount of debt one has is a huge part of the circumstance the debtor is in. Given the immediate cost of filing bankruptcy AND the long term cost of same, the amount of debt is very significant regardless of whatever other factors one considers before deciding to file.

It bugs me that some people keep not getting this concept.

I think people are not getting the concept that the amount of debt vs. income is what makes people decide to file not the debt itself. Yes, it would be silly if you make a 6 figure salary to file bankruptcy on 20k of cc debt, however if you suddenly go from making that to $15/hour your life can quickly become a living hell. If you are facing garnishment and in a state where they are able to garnish 25% of your wages then bankruptcy whether chapter 7 or 13 can be the difference between surviving and living on the street. Delaying bankruptcy just because you don't have enough debt is ridiculous as well as the concept that you should delay filing because you might come down with some dreaded disease and won't be able to discharge the debt for 8 years. No one would tell someone that is 300k in debt to not file because they might have some medical problem in the future yet I hear this all the time with people that have 20-30k. Both people end up debt free, depending on their assets of course, with a fresh start. Each one of these people could come down with a finanically crippling medical issue equally. You have to look at your income vs. expenses and what the long term effect/outcome is going to be and how the consequences of not filing will affect you.
To look at only the debt itself doesn't tell the whole picture.

[OhioFiler]

I think people are not getting the concept that the amount of debt vs. income is what makes people decide to file not the debt itself. Yes, it would be silly if you make a 6 figure salary to file bankruptcy on 20k of cc debt, however if you suddenly go from making that to $15/hour your life can quickly become a living hell. If you are facing garnishment and in a state where they are able to garnish 25% of your wages then bankruptcy whether chapter 7 or 13 can be the difference between surviving and living on the street. Delaying bankruptcy just because you don't have enough debt is ridiculous as well as the concept that you should delay filing because you might come down with some dreaded disease and won't be able to discharge the debt for 8 years. No one would tell someone that is 300k in debt to not file because they might have some medical problem in the future yet I hear this all the time with people that have 20-30k. Both people end up debt free, depending on their assets of course, with a fresh start. Each one of these people could come down with a finanically crippling medical issue equally. You have to look at your income vs. expenses and what the long term effect/outcome is going to be and how the consequences of not filing will affect you.
To look at only the debt itself doesn't tell the whole picture.

I think, regardless of income, state of domicile or most any other criteria, a $20K debt should be handled via other means than bankruptcy. Bankruptcy should be reserved for when one is REALLY in trouble. You only get to use it once every 8 years.

[keepsmiling]

Definitely not a one-size-fits-all solution.
Weigh your options, decide wisely.
The OP has some other options. Not everyone does.

[mountanddo]

I think, regardless of income, state of domicile or most any other criteria, a $20K debt should be handled via other means than bankruptcy. Bankruptcy should be reserved for when one is REALLY in trouble. You only get to use it once every 8 years.

I think that if you think that people that have to have 20k in cc debt discharged aren't in trouble then you obviously have never been in this position before. I was facing a garnishment of $550/month. I wouldn't have been able to pay my rent and would of been homeless if I hadn't filed Chapter 13. I'm a bit offended by your statements. It makes it seem like people that only have 20k in debt don't deserve to file bankruptcy and get the same relief as someone who is more in debt. Your comments don't even make sense. Of course you have to look at the income, state garnishment laws and expenses of the debtor. To make a sweeping statement like this is incorrect.

[jacko]

So what do you think is going to happen to you if you ignored the 15k debt? I have over 60k, and have not lost sleep over it.

It bugs me that people keep saying this. My debt totals about 15K, and it's just as crippling to me as 50K may be to others. My income and expenses will never allow me to pay it off in this lifetime. If I'm to have any hope of moving on with my life, then bk is the only way to go.

Granted, I did post recently that my husband just received a promotion at work, and I was going to try to pay off my creditors, but no matter how I do the math, it's not going to happen. We are still well below median, even for a single person, and we're a family of three. Some people would be amazed at the shoestring budget we've been living on for the past few years. We were on food stamps two months ago, but the promotion has made us ineligible for them, so now we have to buy our own groceries. We also need to get health insurance, and I don't think I need to point out how costly that is.

Having said that, if I were in OP's shoes--with the promise of a high income and no rent to pay--then I would pay off the balance. On the other hand, if I were in OP's shoes with a 50K debt, I might still be forced into bankruptcy.

The point I'm trying to drive home is that you should base your decision on the circumstances you're in, not just the amount of debt.

[jacko]

Doesn't sound like that the poster makes enough for a garnishment.

I think that if you think that people that have to have 20k in cc debt discharged aren't in trouble then you obviously have never been in this position before. I was facing a garnishment of $550/month. I wouldn't have been able to pay my rent and would of been homeless if I hadn't filed Chapter 13. I'm a bit offended by your statements. It makes it seem like people that only have 20k in debt don't deserve to file bankruptcy and get the same relief as someone who is more in debt. Your comments don't even make sense. Of course you have to look at the income, state garnishment laws and expenses of the debtor. To make a sweeping statement like this is incorrect.

[mountanddo]

So what do you think is going to happen to you if you ignored the 15k debt? I have over 60k, and have not lost sleep over it.

I ignored 6k of debt and was sued. Not everyone gets away with just ignoring debt. You must not live in a state where the can garnish 25% of your wages.

[shark66]

Doesn't sound like that the poster makes enough for a garnishment.

My understanding is that OP had the wages garnished on and off, because of spikes in employment...

The bottom line is that everyone has to do their own math, depending on their own set of circumstances. There is no one-size-fits-all solution. Some folks may prefer having a 25% of their wages garnished as opposed to a 5-year-100% payback in a Ch. 13 filing, while the others will file and not think twice about it once any type of garnishment possibility appears on the horizon...

My $0.02 only...

Good luck to us all.

[lotsahats]

So what do you think is going to happen to you if you ignored the 15k debt? I have over 60k, and have not lost sleep over it.

Lucky, you.