I know I need to file bankruptcy, but can I ever be employed again? (detailed post)

[Indigosage]

Hi, I am Nikki. I am a 26 year old female from Ohio and I am considering bankruptcy as my only option at this point.

A little backstory, I purchased a house back in 2006 when I was only 20, it was the biggest mistake of my life and has cost me nearly everything. I am seven classes shy of a Bachelor's degree in finance, and am afraid if I file BK I will never be able to find work using said degree.

Debts: (Everything is currently up to date, but I will not be making payments any longer)

Mortgage 64,000.00 (Purchase Price 87,000, current value ~30,000, if that)
Student Loans 20,000 (Private student loans that I know will not be dissolved)
Credit Cards(3) 14,000 (One card has already been closed on me due to late payment)
Medical Bills (could be more) At least 100,000 (Thank you insurance and your pre-existing condition clause!)

The only things I own outright are my car (2005 Honda Accord KBB value ~10,000) and my personal property within the house.

I gross about 1,450 a month, take home about 1,000 after taxes and insurance. The fun part about my job is that it is a two hour drive from my home, as there are no jobs in my area.

My biggest concerns:

Once I get settled I will be returning to college to get my business degree, most likely an accounting and finance degree. I am concerned that filing bankruptcy will ruin any chance of me ever being able to utilize said degrees.


I cannot lose my car, I live two hours away from my job and until I can unload the house I am stuck staying with my parents on work days and driving back and forth otherwise, which is 250 miles round trip.


Any advice that I can get on my situation would be GREATLY appreciated. If further details are needed please ask and I will disclose them. Thank you in advance for reading my thread and hopefully helping me to resolve my financial issues!

[keepmine]

Here are Ohio's exemptions. Looks like the car could be a problem.

http://www.thebankruptcysite.org/exemptions/ohio.html

[keepsmiling]

At least one member here (Freddy? I think) had a title loan put on her car for just this reason.
Sometimes it makes sense to buy a NEW car for just this reason.
And, to answer your other question-- sure, you will be fine. You have the advantage of youth on your side.

[Indigosage]

Losing my car would be devastating. Are there work arounds to keep vehicles? I paid it off probably two years ago, the only reason it is worth so much is because it has low miles.

[keepsmiling]

Sure, you can buy it back from the trustee. But why pay for it twice? Welcome to the bass ackward world of bk. This comes up every other week here on the forum btw.
Personally I think all states should have the same bk laws. But what do I know lol....
Think about buying a new one with as small a down payment as possible. You'd have to sell yours and use the cash for necessities. Maybe pay down your student loan.

[TheBajan]

Welcome! I am only a couple of months into a chap 13 and and I just got a job as a bookkeeper so yes... you will be able to use your degree! KeepSmiling is right, you have youth on your side. I'm assuming you are not trying to keep the house? If that's the case you should quit making the payments on it. Even if you aren't planning to file for a while you have time before they will force you out and it sounds like you have supportive parents. Your income is so low that even supporting the rent on an apartment seems difficult. Can you give us more details about your situation?

Chin up... everything will be okay. We're here to help and there is definitely life after BK.

The Bajan

[Indigosage]

I will no longer be making payments, and I am glad to rid myself of the house. I will be renting a place in the city in which I work once I get established.

[Flamingo]

Keep in mind that bad credit and/or a bankruptcy on your credit reports could keep you out of the running for certain jobs, that is not saying all jobs, just certain ones in the financial sectors. Many major banks and lending institutions have policies in place where they simply will not hire anyone that has filed bankruptcy and that is usually specified right up front. Always search a company/employer prior to the hiring process so you know what to expect. Many people do not encounter a problem but many people do. Just keep that in mind. If you need to file bankruptcy, I would not let the thought of not getting a job in the future due to that bankruptcy deter me from filing - you will recover - the issue you have to deal with is if you file a Chapter 7, you will have that Bk on your credit reports for 10 years and if you file a Chapter 13 for 7 years - that is from the date of the bankruptcy filing. Your BK is public information and can be found by anyone checking your credit or background, depending on what background check is run. Most employers in today's world run credit checks.

[Indigosage]

I have worked in the finance sector for the past five years, and it was the unhappiest I have ever been. I have no intention to returning to the banking world. Luckily a finance degree is versatile and usable in all industries. Right now I work for a call center, and while it isn't an ideal job I enjoy it very much. As a bonus I can have as many piercings as I wish, I make a decent wage for being in the rust belt, and the possibility for promotion is very high. I intend on enrolling at OSU in the fall to complete my degree, but to be honest the job situation in Ohio/Michigan is so poor I am best to stay where I am at for a while, unless a great opportunity presents itself.

The reason I am so scared of finding post college employment is because my very unsupportive parents have placed the fear of God into me over bankruptcy. To my family, it is a four letter word and I fully expect to be disowned forever once I file for bk. I made one attempt, and actually sold my house in a short sale, but was convinced by my parents that it was a terrible idea. After that I ended up in the hospital for a nervous breakdown because I could no longer handle the stress between having a low paying job and going to college trying to support myself and keep current on payments. I cannot say I was forced to purchase my home, but I was certainly coerced and conspired against to get me into a house.

[df04527]

I cannot imagine unsupportive family especially in this day and age but i do understand the four letter word. Focus on what is right for you and not someone else. Think of this as the best business decision you can make for yourself if you choose to do so. Also remember it is not the end of the world. this will pass and you will have a fresh start.

Hang in there.

[keepsmiling]

So sorry to hear about your family. It sucks that they have such tunnel vision. Do they have any ideas for you as to how else you may fix your situation? Just wondering. I love when people prefer to be part of the problem rather than the solution....

Maybe you can rent out the house for a while to get some cash? Just a thought.
Have you sat down with an attorney yet? I'd ask about paying off that student loan, and if there is any way to protect the car since you'd surrender the house ( I don't think so, as you don't have equity) Not sure if they'd go after that or not, or how long you might have to wait afterwards to file.

[jst4f]

Owning a house is part of God and country to a lot of people and BK is the 8th deadly sin. I grew up with the same point of view. There is life after BK and it is truly a fresh start. Whether you finish school and get employment that you enjoy will not be affected by filing BK in fact getting rid of your debt may actually help. Pre-filing was the most stressful time for us as there are so many uncertainties. Hang in there, talk to several lawyers, read the forum and you will come through this in fine shape.

[Snax]

I can only suggest that any employer that would exclude you for having filed BK is incapable of seeing the larger picture. After all, who is a greater potential risk to them, somebody saddled with massive debt, or somebody who was able to recognize being in over their head, who has removed much of the impetus of overwhelming debt that drives some to unethical behavior? Should the question ever come up in an interview, be sure to point that out!

On the other hand, I don't know that it would inappropriate to simply tell an employer that you are applying for a job, not credit, so that information is not their business. In fact, turning that around on any private employer and asking for verification of their credit makes much more sense because it is really you lending them your time and labor until the next paycheck. But that's not necessarily how the real world works. :/

Regardless, if you are in over your head and out of hope to change it any other way, BK will help you to get your life back. Just don't repeat the process!

[keepsmiling]

I just want to point out that most of Nikki's debt is from medical. As to don't repeat the process.... I blame the fricking insurance companies. They really need to take some responsibility here.
And she might want to point that out to her parents.

[Bell30656]

I think Nikki is overvaluing her car. What is the average trade in on that vehicle? You have to remember if the court takes it they are selling it at an auction. It won't bring much. My attorney was particularly good at valuing vehicles, in my opinion. He said something like this... "Let's see it weights 2500 lbs, scrap metal is selling at 15¢ per pound... add another $200 because you drove it in..."

Seriously though... The trade in for a 2005 Honda Accord LX with 100,000 miles in fair condition is $5675... Still over your vehicle exemption for Ohio but you also have that $1150 wildcard... When you get ready to file, talk to your attorney. That is why you are paying him/her. They know the exemptions and they know what will fly with the trustee in your area. Keep in mind that a 2008 vehicles is 5 years old maybe 6 by the time this gets to court.

On the house, if you are going to file bankruptcy consider staying in the house as long as you can so you can save money. It takes banks a looooooong time to foreclose upon a house these days. Especially if you file bankruptcy. Truth is, in my humble opinion you are a long way from actually filing bankruptcy. Once you have decided that you are going to file, you need to go have a free meeting with an attorney. Interview a couple of them. From the time you stop paying the bills until you actually file? It could be a year or more.

As for not being able to get a job in your field? Donald Trump has filed bankruptcy... Senator Marco Rubio... lots of big name, wealthy people have went through bankruptcies.