Daisuke
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Well... since you have a salary and pay for a car you are technically not bankrupt.
You have $5,000 in outside debt and $7,000 family debt. If you can settle for a cheaper car and pay off the $5,000 in 1 year @ $ 416 per month, it would be a good start.
Cut down on extravagance and go for cheap. If you file for bankruptcy you will lose everything. |
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Johan
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Id ask under the legal section. Personally, I don't think you should file. You will have bad credit for several years. This could mess you up, especially if you get married and want to buy a house. Credit counseling is a scam set up by credit card companies. Just sell some of your junk, discipline your purchases, and pay minimum payment on all except one or two cards, which you try to pay off in a reasonable amount of time.
By the way, a $700 car payment sounds very excessive (what are you driving, a BMW M6?). It would be much better to trade down and reduce that payment than to file for bankruptcy. |
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TOUCH
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SELL UR CAR....please call everybody and pay a little bit at a time....bankruptcy is the worst credit
in the WORLD |
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papabear098
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Your in great shape and you make 2 grand first get rid of the 700 a month car and get a used car that you can buy out right within 6 months and get rid of the cable bill that's nearly 500 a yr. Ask yourself can you just live without it and carpool to work. No collect calls and no long distance calls no cell phone or house phone choose one or the either and cancell one of them that's another 500 saved. No dating or going out to eat, theater or movies Get a 2nd job and not full time take the extra money you earn and pay the principal of the loan You should be out of debt in about a yr and go talk to your creditors The WORST THING YOU CAN DO IS NOT TALK TO THEM AND EXPLAIN YOUR SITUATION. Most people will work with you. Bankruptcy should be your last option |
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Katze
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Don't do it. Get rid of your car payment first and buy something less expensive. Either live with your parents or rent only a room and you should have plenty of money to pay of your debt. You should make a budget and stick to it. You can do it. Another thought, maybe you can get a second job as well. |
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momma_m_47280
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HOW IN HE WORLD DID YOU GET $19,000.00 IN DEBT AT 19 YRS OLD? MAYBE YOU SHOULD LEARN THE WORDS I DON'T NEED THAT! WHY SHOULD YOU TRY TO GET OUT OF PAYING OFF THAT DEBT? YOU OWE IT! BE AN ADULT AND FACE THE DEBTS! IF YOU HAVE TO DO WITHOUT FOR A WHILE THEN TO BAD! TRADE IN YOUR CAR FOR A LOWER PAYMENT! I GUESS YOU STILL LIVE AT HOME! YOU SHOULD HAVE SAVED INSTEAD OF SPEND, SPEND, SPEND! IF THESE WERE MEDICAL BILLS, THEN I COULD UNDERSTAND ! |
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Socks
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Don't file for bankruptcy or you'll never be able to get a credit card or buy a house or a car again.
Sell your current car, even if you lose money on it. $700/mo for a car payment is outrageous (and stupid). Buy your next car at a police impound lot. For $500-1000 you can get a decent car and it'll get you from A to B just as well as your $700/mo car.
Look at other things you own - computer, stereo, misc junk. Have a yard sale and get rid of everything you don't NEED. This includes the $1500 speakers in your $700/mo car.
Cancel all your credit cards. Seek a debt consolidation (AFTER selling your car) to combine them into one payment. If you can get a written promisory note from your family and get the lender to accept it, go ahead and include that in your consolidation loan.
Eat cheaper. Less (no) fast food. No junk food. No more pizza and beer. No more parties on the weekends and no more fun. No more ladies.
At 19, most people are lucky to be making $500 a month. That you make $2000 is quite honestly incredible. I'm 24 working a job I've worked my *** off to get and qualify for and I barely make $1600 a month. Follow the advice I laid out above and you'll start seeing immediate improvement in your financial situation. If you ignore this and file for bankruptcy then you'll still have to pay off all of your current debts (you'll just have more time to do it) and you are more likely to get many of your things reposessed. Not to mention the black mark that will forever remain on your credit (forget that 7 year limit that people are supposed to follow - they never do). You'll never qualify for another car loan, a house loan, or credit cards again. Especially in our tight economy.
Good luck. Start managing your money smarter and maybe you'll even have enough to start saving some. Put it away and maybe even invest it somewhere and you'll be glad you did in another 5 years. |
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la-la-lauren
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Sit down with a parent or a friend and analyze your finances. Look at how much you can scrape out of your paycheque to put towards your debt. Sell your car and take the bus. There are ways to get out of debt if you are willing to sacrifice until you reach the other side. Bankruptcy haunts you for 6 or 7 years after filing, if you're lucky. It's easier to get out of debt than to recover from bankruptcy. Talk to someone at your back about savings plans and how to pay off what you owe. Get a line of credit or a loan to pay off your credit cards, cutting your interest rates in half. There are ways out of this. Make an appointment with a personal banker. |
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te144
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Bankrupcy is like tatooing 'I'm a bum; don't take a chance on me" on your forehead. Don't stop trying until you find another solution. |
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lisa s
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hi, I am sorry to hear that you are in such a huge pickle.
You say you dont know how you got into this mess and until you find that out NOTHING WILL HELP.
Not being smart but if you dont know what you did to owe 12 THOUSAND dollars then what will stop you from doing it again?
First and foremost you need a budget.
TO do that you have to write down exactly where themoney goes
EVERY CENT OF IT
rent, car, electric
If you make (bring home?) $2k per month you should be able to wipe out your debt in 2 years with a bit of discipline and effort.
I would start by selling your car.
700 a month for a car is waaaaaaaay more than you can afford and if I were your family EVERYTIME I saw that car in my driveway I would be pissed knowing that you owe me part of $7k.
They guy above has the right idea...he oversimplified it a bit since your 12k debt will double since i am sure you have a horrible interest rate and several late/non payments...so it might take you slightly longer to get out of the debt but it CAN be done.
In addition to spending wiser and living more frugal, try to sell stuff you dont need. Sure the car has to go but what about the expensive cellphone/plan, the fast food daily lunch meal etc.
There are plenty of ways to trim your budget but all will require an effort at this point.
Since you already owe your family...why not skip the major gifts this year...instead of some present that you cannot afford, why dont you give them the gift of your new found maturity....telll them that you love them and you are going to pay what you owe them so xmas will be different this year. Give them the gift of your time. Make them 'coupons' that offer your time (clean out the gutters of your mom's home, mow the grass etc).
put the money you would have spent to your debt with them. Also share your plan with them. If you plan to sell your car and they know about it they can 'hold your feet to the fire'.
If they love you (and I obviously think that they do since they loaned you $6900 more than I would loan anyone driving a $700 a month car payment person), they will be happy to help out (ordering pizza instead of insisting on a fancy resturant) etc
Dont know about the debt settlement but any attorney from the phone book could let you know...but until you find out the MOTIVATION for your spending problem (and yes it is a problem to spend 12k and not know where it went)
then whatever you do to get out of it is only putting a bandaid on it! |
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fred9923456
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Sell the car get something with a 200 dollar car payment. No reason at all a 19 year old making 2000 a month has a 700 a month car payment. You were all happy that somebody loaned you 12000 dollars and another 7000 from family you need to do the honorable thing and pay it back. Dont be a scumbag. |
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Bill P
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http://www.daveramsey.com/
This guy is great. DOnt file for BKruptcy, you will regret it. Listen to Dave and call him first. |
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Magick
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Stop spending so much money and pay your bills. Learn about money now while you are young and have time to recover.
Maybe you need to sit down and really start to develop a budget. Go to school and take an accounting and an economics course.
Welcome to the adult world. |
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foltz41042
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Froggy hit this one on the head....what could you have possibly spent this much money on at 19, unless it was for drugs.....crazy....you are screwed for a long long time.... |
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