Time to bite the bullet and file Chapter 7. Googled for all the necessary "should I? Really" and after a glass of wine and a phone call to mom, I need recommendations
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if you're only in about $10k - filing bankrupcy is like hosing you credit for the rate of only about $1400 / year - seems kind of silly. may also hurt the insurance rates on your SUV (hmm... wonder what that would sell for...)
further - if you already aren't paying on some of these cards - you might be able to pay them off for pennies on the dollar (just get any settlements in writing - and pay them with a cashiers check - don't let them in your bank account)
She hasn't delivered a total, and I wish she would, because like you I'm not that shocked by "five figures of debt" having escaped $45,000 in my own debt.
really sounds like $5-$6k of medical plus another $5k in credit card debt.
from looking at the laws - it seems like they'll just hand out a chapter 7 to anyone making less than median income after they get "credit counseling."
part of the problem is when people don't dig themselves out of their messes when they really can - is that they never learn good financial habits....
I'm having this psychic vision - it's the year 2012 - someone is signing a loan for a used Toyota RAV4 at a car dealership on Aurora... the interest rate is 37%....
my ER visit and necessary monthly prescriptions weren't a fault of bad financial habits.
Like I said, it's not like I went on nordstrom shopping sprees or extravagent vacations. I live a very humble life. Just sucks I need to buy gas sometimes and eat occasionally, too.
about 11k in credit cards now , another 5k in personal loans (went straight to medical expenses), about 50k in student loans, and my 17k car loan.
hanging onto those 5 digits by a thread.
and yes, I have a spreadsheet for my finances, it's actually very pretty and color coded, but I don't have interest rates and individual cards. It goes something like this "Credit Cards: $400 / Student Loans: $200 / Money Leftover: None. Call Dad"
ok - with all the details - I gotta pick on you one last time (sorry):
$50k in student loans won't go away with bankruptcy (you probably already know this). there's a good chance you can "defer" (avoid paying) it for a good while though without bankruptcy.
the car loan won't go away if you keep the car - you'll have to re-affirm the debt.
is the car worth anything near $17k? why don't you sell it - and buy a $2000 junker?
you've then got the cash that was going to the auto-loan to work on the credit cards with.
seriously - you got no business in a $17k car if you're planning to file bankruptcy over $16k of other debt.
it may not seem like it - but it seems pretty clear from a distance this is the result of some risky decision-making (ie - buying a $17k vehicle with $50k of student debt, while having either no or minimal health insurance + very little savings to cover emergencies)
I'd call someone with Clark Howard for some free general advice:
http://clarkhoward.com/ (look for the phone number by "ask team clark")
if you're only in about $10k - filing bankrupcy is like hosing you credit for the rate of only about $1400 / year - seems kind of silly. may also hurt the insurance rates on your SUV (hmm... wonder what that would sell for...)
further - if you already aren't paying on some of these cards - you might be able to pay them off for pennies on the dollar (just get any settlements in writing - and pay them with a cashiers check - don't let them in your bank account)
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from looking at the laws - it seems like they'll just hand out a chapter 7 to anyone making less than median income after they get "credit counseling."
part of the problem is when people don't dig themselves out of their messes when they really can - is that they never learn good financial habits....
I'm having this psychic vision - it's the year 2012 - someone is signing a loan for a used Toyota RAV4 at a car dealership on Aurora... the interest rate is 37%....
Reply
my ER visit and necessary monthly prescriptions weren't a fault of bad financial habits.
Like I said, it's not like I went on nordstrom shopping sprees or extravagent vacations. I live a very humble life. Just sucks I need to buy gas sometimes and eat occasionally, too.
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but you are hardly alone in being told that high levels of debt and not saving are great ideas.
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hanging onto those 5 digits by a thread.
and yes, I have a spreadsheet for my finances, it's actually very pretty and color coded, but I don't have interest rates and individual cards. It goes something like this "Credit Cards: $400 / Student Loans: $200 / Money Leftover: None. Call Dad"
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My car is worth like $1k, maybe $2k. Why do people seeking bankrupcy almost always have nicer things than I do?
I don't think the attorney will tell you what you want to hear.
Have you been to a food bank?
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$50k in student loans won't go away with bankruptcy (you probably already know this). there's a good chance you can "defer" (avoid paying) it for a good while though without bankruptcy.
the car loan won't go away if you keep the car - you'll have to re-affirm the debt.
is the car worth anything near $17k? why don't you sell it - and buy a $2000 junker?
you've then got the cash that was going to the auto-loan to work on the credit cards with.
seriously - you got no business in a $17k car if you're planning to file bankruptcy over $16k of other debt.
it may not seem like it - but it seems pretty clear from a distance this is the result of some risky decision-making (ie - buying a $17k vehicle with $50k of student debt, while having either no or minimal health insurance + very little savings to cover emergencies)
Reply
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