Chapter 7 Bankruptcy at 24

[Resisting Nut]

I didn't know where else to post this, so ill post here first.

I need some input on this option of filing Chapter 7 bankruptcy. I am 24, about to be 25 in January. I've managed to build up a considerable amount of debt in the past few years, mostly including credit card debt and medical bills. I am behind on all of my credit cards, in fact, I am so behind I dont even make enough money to pay the minimum payment. Constantly getting calls from debt collectors, it keeps me up at night knowing that I am so deep in debt. How deep you ask? $20,000 in debt and there are still bills floating around out there that havent been sent off for collection yet but they will.

Well its too the point where I dont make enough at my $8hr job to pay these people off. So my mother suggested that I file for chapter 7 bankruptcy. I have done my research and found many people around my age have been in the similar situation and filing for Chapter 7 saved them.

Basically, I'm asking for y'alls opinion/advice on whether I should go through with this or not. My credit score is getting fucked and at this rate, ill be living with mom and dad forever. Disadvantages/Advantages of filing Chapter 7.

-Resisting

 

[laughingdead]

I am no expert on bankruptcy but from what I understand from people I know... it can stop them from taking your assets which is important when you can't keep up on certain payments.

As for your medical bills... Was it a hospital? Don't they have charity care? You are independent. Usually if you are so broke you can't pay they have you taken care of under charity care. However, I don't know how it works in Texas. You would need to research it. But if that is not an option...if it is a hospital you can call and explain (if you decide not to file bankruptcy) that you are a young guy with no money and deep in debt. You can tell them you want to pay them back completely but at this point in your life that is not an option for you and if they want to see any money at all that they need to negotiate something with you. I have heard of people negotiating with a hospital to pay them $ 10 a month because that was all that was reasonable for them. You can try this out at least, worst that could happen is they won't negotiate but likely they will because hospitals have huge instances of dead beats.

The credit card debt is the difficult part. 20,000 is not that bad. I am looking at that number for when I graduate from college having had to take out federal loans even after all my scholarships.

If you file then your credit will be in the toilet, making it hard to finance anything in the future whether that be a car, house, apartment, etc. However, you can be more responsible in the future (if this is stemming from irresponsibility) and you can restore your credit rating eventually. I don't know how long it would take.

You should also figure out a plan so that you are not working at a minimum wage job forever. Or if you are it is one that you thoroughly enjoy and can do and eventually retire from. Do you have any talents? Speak any other languages? Interested in a particular topic? Maybe take on an apprenticeship or go back to school.

Bankruptcy can really alleviate an anxiety that otherwise ruins your life. But always remembers... it's just money, it's not the end of the world. And never get indebted to the IRS. They will come after you hard.

 

[Resisting Nut]

I am no expert on bankruptcy but from what I understand from people I know... it can stop them from taking your assets which is important when you can't keep up on certain payments.

As for your medical bills... Was it a hospital? Don't they have charity care? You are independent. Usually if you are so broke you can't pay they have you taken care of under charity care. However, I don't know how it works in Texas. You would need to research it. But if that is not an option...if it is a hospital you can call and explain (if you decide not to file bankruptcy) that you are a young guy with no money and deep in debt. You can tell them you want to pay them back completely but at this point in your life that is not an option for you and if they want to see any money at all that they need to negotiate something with you. I have heard of people negotiating with a hospital to pay them $ 10 a month because that was all that was reasonable for them. You can try this out at least, worst that could happen is they won't negotiate but likely they will because hospitals have huge instances of dead beats.

The credit card debt is the difficult part. 20,000 is not that bad. I am looking at that number for when I graduate from college having had to take out federal loans even after all my scholarships.

If you file then your credit will be in the toilet, making it hard to finance anything in the future whether that be a car, house, apartment, etc. However, you can be more responsible in the future (if this is stemming from irresponsibility) and you can restore your credit rating eventually. I don't know how long it would take.

You should also figure out a plan so that you are not working at a minimum wage job forever. Or if you are it is one that you thoroughly enjoy and can do and eventually retire from. Do you have any talents? Speak any other languages? Interested in a particular topic? Maybe take on an apprenticeship or go back to school.

Bankruptcy can really alleviate an anxiety that otherwise ruins your life. But always remembers... it's just money, it's not the end of the world. And never get indebted to the IRS. They will come after you hard.

The credit card debt is all from irresponsibility. Mainly from when I was using opiates, I would just do cash advances so I could get what I needed. I really would love to go back to school, I love love love working with plants, I just find it so therapeutic and studying plant biology really interest me. I basically stopped going to school because I was more or less high all the time, I found myself in a deep rut of depression after my best friend died 2 weeks before I started school which in tern led me to never go to class and sit around in my own shit and getting high.

You mention apprenticeship, which I tried out, in the Plumber and Pipefitters Union here in town, I despised that kind of work. Although I do enjoy welding, I just dont want to work construction. I've got a messed up back and knees from hockey injuries, I couldnt do construction for a living. I definitely dont want to work a minimum wage job for the rest of my life, as much as I love my job now, I dont want to do it for a living.

At this point my credit is so far fucked that filling for Chapter 7 is about the best thing for me right now. I know that its going to make things tougher for me in the future but I did this to myself, and now I've got to pay the price, no pun intended

My ultimate goal is to get back in school, get my degree and work with plants. There was a guy who came out to the treatment facility I was at and did Plant Therapy with us. That would be an ultimate goal of mine, and still is. I've matured mentally quite a bit since I was in school but there is no way in hell I can go back with this over my head.

As far as the hospital bills, I've told them, "look, i'm just getting into recovery trying to get back on my feet, I dont have enough money to pay you guys right now but once I can make payments, I'll pay $30 a month." Their OK with that, its just the credit card companies and this credit union in which I took out a loan and never paid back.

Young, dumb, and full of cum is what I was. I'm meeting with a lawyer tomorrow to discuss this, ill let ya know how it goes.

Thanks bro beans for the input!

 

[LuGoJ]

A few things to keep in mind..

Bankruptcy will not relieve you of your obligations to pay alimony and/or child support.
You will lose property that you own that is not exempt from sale by the bankruptcy trustee.
Bankruptcy will not get rid of your student loan debt.
You may still be obligated to pay some of your debts
You will lose all your credit cards for a very long time (this got you into your mess in the first place so it may not be a bad thing)
Bankruptcy will remain on your credit report for 10 years

I would go over everything with a bankruptcy attorney, they will be able to tell you what you will be on the hook for. Have you tried consolidating your debt yet? I would explore that option first and see how long it will take you to pay everything off. If you can get everything paid off in 5 or 6 years through consolidation, while building your credit back, that may be a better option.

 

[thujone]

if you have money coming in you should look at debt consolidation first, bankruptcy might save you now but it's going to hurt you later

 

[One Thousand Words]

$20 000 is not enough to justify filling for bankruptcy. I know at the moment it may seem like a lot of money, but by the time you are 30 it will be nothing more than chump change. Your best bet is seeking help from a debt consolidation business who will sit down with you and work out a plan to clear your debts. At the very least they will pay your creditors and stop them chasing you weekly. You can then start paying them back without the pressures of more ruthless collectors.

The social and financial hurdles that being bankrupt will create are immense. Jobs that require you to hold a company credit card are impossible, car loans for jobs that require proper transportation will be unattainable. Landlords, investing in shares, leasing equipment for future businesses endeavours will all want nothing to do with you. Short term pain will prevent long term gain.