Should a 19 y/o file Bankruptcy

[polospy]

What is the name of your state?Colorado

I defnitely know that this new bankruptcy law passing in Oct. could put a lot of us college kids who had a little too much fun our freshman year paying off this burden and buckling down for the next several years.

So here's my question.

Banana Republic is taking me to court, or offering me a settlement for $502.00 (The original amount allegedly is $680) but I can't really afford that right now.

I owe over $5,000.00 to other creditors whom I havent paid on a regular basis for some time and so my min. payment is sky rocketing.

I also owe $7,000.00 to the university, because they're saying that my financial aid didn't go through, so I owe that money DIRECTLY to the university IMMEDIATELY.(Will a BK even get rid of that?)

So altogether it's well over $10,000.00, should I do it? I don't have any property in my name or even a car. Just the shirt off my back and some shoes.

[bigun]

That $7K to the school will very likely survive bk.
I just wouldn't file over $5500 {or $12K}. When you get out of school and start a fulltime job, you'll have the income to deal with the situation.
BK should be reserved for a true disaster and a multiple of $12K.
Are you working at all?

[sunar27]

I'm most likely going to file for just 12k in credit debt. I have 26k in school loans myself but those wont be discharged. It's all based on your income to debt ratio and right now, my income is much less than my debt. You really should try to pay off Banana Republic - borrow money from someone. The school debt you can just defer or talk to the financial office - they'll work with you.

[polospy]

Yes I am working at a measily $8.00/hr so that means I'm making about $1,000.00. a month. 590 a month, banana republic wants to take that 500, and then I have to pay a phone bill. Should I even take the settlement? Christ, and then next month to top it all off I go to court for a DUI.

Yes, yes life is grand in colorado.

So I'm seriously sweating it but, in all honesty, that new bankruptcy law that's hitting the playing field in Oct. (Has anybody heard about this?) makes anyone who hasn't ever filed, want to pull this wild card out of their deck. It'll make it so, even after you file BK, you still have to pay the creditors back some of the debt.

Oi, Oi, Oi.

[bigun]

I'd absolutely take that settlement. Get the terms in writing.
I'd strongly suggest you consider dropping out of school for a semester and work all the hours you can and get these finances straightened out.
You really don't need to file bk over this amount. Heck, filing fees and legal fees will be $750 to $1000. That would be better spent getting these accounts current .

[sunar27]

Originally Posted by polospy

Yes I am working at a measily $8.00/hr so that means I'm making about $1,000.00. a month. 590 a month, banana republic wants to take that 500, and then I have to pay a phone bill. Should I even take the settlement? Christ, and then next month to top it all off I go to court for a DUI.

Yes, yes life is grand in colorado.

So I'm seriously sweating it but, in all honesty, that new bankruptcy law that's hitting the playing field in Oct. (Has anybody heard about this?) makes anyone who hasn't ever filed, want to pull this wild card out of their deck. It'll make it so, even after you file BK, you still have to pay the creditors back some of the debt.

Oi, Oi, Oi.

I don't think you understand the changes to the BK laws. Nowhere does it say that if you file and get discharged you have to still pay back creditors. You would if you get a 13 which more people will have to do but those that truly deserve a 7 will get it after jumping through a few more hoops.

Anyway, you got a DUI at 19 y/o? Man, you have issues.

[Ladynred]

Nowhere does it say that if you file and get discharged you have to still pay back creditors.

Oh yes, it certainly does. There are certain circumstances and more types of debts that will survive even a Ch 7 and it gives creditors far more power to intrude into your bankruptcy, powers they do not currently have.

I would have to agree with Bigun, postpone school for a while and work 1 or 2 jobs to pay off the credit cards. The school loans aren't going to go away regardless and bankruptcy won't erase any fines thrown at you for the DUI either.

[sunar27]

Originally Posted by Ladynred

Oh yes, it certainly does. There are certain circumstances and more types of debts that will survive even a Ch 7 and it gives creditors far more power to intrude into your bankruptcy, powers they do not currently have.

I would have to agree with Bigun, postpone school for a while and work 1 or 2 jobs to pay off the credit cards. The school loans aren't going to go away regardless and bankruptcy won't erase any fines thrown at you for the DUI either.

Ah didn't know that... i have a lot to learn too.

[polospy]

The school thing isn't a loan, it's a debt. I had received student financial assistance from the university at the time, but they found that I wasn't eligible for it and therefore I owe the UNIVERSITY the money. It isn't a loan, as traditionally is recognized, it is an actual debt to the university. I took the classes, now they want the money.

Well, I'm certainly thinking of just paying everything off. We have the family lawyer that will do the BK for $300.00. I'm really concerned about this new law and have no belief that I'll have any reason to file a BK in the future (but who, does, huh?) stuff happens, I'd rather have a clean slate at this age, honestly.

I am taking a semester off, but dont have the time for two jobs. and as I'm self reliant not even really the money to pay off the credit debt, under the terms of the creditor.

I hear a lot of legal counselors actually SUGGESTING people file BK, before this law goes underway, get 'em while they're hot. But, BK at 19... yeesh, it is pretty unheard of. But for my situation, especially facing these legal fees for the DUI, wouldn't you say it could be...plausible? (and no I have no false beliefs that the DUI monies will be erased by the BK)