Filing Bankruptcy

[Gomer_P]

What is the name of your state?New Mexico

I have about $15500 in credit card debt that I can't pay. I am still in school but this happened during my first 2 years at college. Unfortunately I didn't realize what kind of mess I was getting into when these people on campus started handing out papers, lol. My dad is an attorney and he told me not to file bankruptcy because it will ruin my credit but it is too late, my credit is already very very poor from late and non-payments, etc.

I live at home with my parents and I'm 22 years old. I have no assets in my name at all, not even my vehicle. My bank account currently has a $0.00 balance and I'm not employed at this time. What I need to know is how expensive it will probably be (ballpark) for me to file bankruptcy and get rid of this debt. I will come up with the money for bankruptcy, somehow.

Now before the criticism starts, I would gladly pay what I owe if I had it. I feel bad for doing this but I also feel like a judgement would be far worse for me than declaring bankruptcy. Please point me in the right direction. Thanks,
T.J.

 

[Ladynred]

How much it'll cost you for a lawyer varies widely by area. The filing fee for a Ch 7 is $209, which you can ask to pay in installments.

Your best bet is to go see a couple of BK attorneys for a free consultation and see what they tell you. If your local BK court has its 341 meetings on-line, look for the lawyers that are there all the time and call them first. You do not want a lawyer that only does BK's occasionally.

 

[Gomer_P]

Thanks for the reply. Is there any way that I could do this myself? I think I can go to my dad's office and get the forms I need. The $209 is no big deal really but I'd rather do the rest myself if I can since I have access to his law office and all the forms and books that are in it. The only thing is that he has never done any bankruptcy law so I don't know how limited my resources would be. However, the attorneys that used to work there before him left a lot of material behind and they had at least a few bankruptcy cases. Thanks again,
T.J.

 

[Gomer_P]

Some more info that may be important:

We have a '94 Plymouth Acclaim that is worth $650, trade-in value. We also have a wrecked '95 Chevrolet Camaro that is for some reason worth $4040, trade-in value. I transferred ownership/titles of both vehicles to my mother on 11/22/2004, as a late birthday present to her. She can't use the Camaro now but she will be able to within 6 months. The car titles are in her name and her name only. Do you think I should wait awhile before I try to file chapter 7? Another thing I'd like to mention is that I haven't charged any large amounts (over $200) on any of my cards since the middle of September, 2004. Thanks again,
T.J.

 

[Ladynred]

Uh oh.. big red flag just went up !! ANY transfer of assets within a year of filing for CH 7 can and likely will be scrutinized by a bankruptcy Trustee. It can be deemed a fraudulent conveyance .. trying to dump assets that would otherwise not be exempt. Now you really DO have to wait.. at LEAST 6 months and even that might not be enough. See why you need a lawyer ??

Yes, you can file pro se.. but its not advisable, BK is far from easy and you've already got a huge problem.

There's no way a WRECKED Camaro could be worth $4000.

 

[Gomer_P]

Well, how about I get my Acclaim back into my name and keep the Camaro as it is? I know it is wrecked but Kelly Blue Book priced it at $4040 earlier tonight with major body work needed and a salvage title, according to their "walk around" trade-in pricing option. I honestly believe that I couldn't get more than $2000 as it sits but who knows? I think I will consult one of my dad's law school buddies because the guy lives in Albuquerque and has done this kind of work before. I'm not sure how often he does it but I'll have to check on that. Thanks for the warning,
T.J.

 

[Gomer_P]

Since I don't own a home or any real property, can this "unused portion of homestead" of $8725 be used as a "WILD CARD" to make my vehicles exempt? Here is the page I'm talking about:
http://www.newmexicobankruptcy.com/fed.html

Also, would everything be okay if I went and had my vehicles transferred back into my name tomorrow, then went and talked to a lawyer to get the ball rolling on my chapter 7? Or would they still see that the titles went back and forth? Thanks again,
T.J.

 

[Gomer_P]

Another question: Could I keep my name out of the newspaper? My dad and I have the same name, which is Timothy, but I go by T.J.. If I can't keep it out of the paper can I at least change it to T.J. so that people won't think that its my dad who is filing chapter 7? I live in a tiny town and gossip spreads like wildfire and I don't want him to be affected by this.

 

[Ladynred]

Yes, the unused portion of the homestead can be used for 'any property', so it would be enough to protect your car(s).

I really don't know that flip-flopping the car titles is such a good idea, I don't know how closely the Trustee may check something like that. If the Camaro is worth $4040 wrecked, how much are the repairs going to be to get it back on the road ?? Deduct that amount from the value and then see what kind of number you get.

As for keeping your name out of the paper.. does your local paper even publish bankruptcy filings ? Not many do that any more from what I gather.

 

[anabanana]

It's not for you, T.J.

T.J.--

There. You got a lot of nice, judgment-free advice before the criticism, but now here is the criticism. This is a ballooning social problem and if people don't speak up about it, it's only going to get worse and worse until the banks and lenders get all sorts of draconian bankruptcy reforms and no one but the filthy rich will be able to declare bankruptcy anymore.

You are too young and there is really no need for you to do this, not based on the information you've provided, other than a lack of backbone and the ethical will to meet your obligations, right? No medical disaster, no legal calamity, no crushing familial collapse?

Basically, you were young and dumb and got in over your head and bought a bunch of stuff and now you don't want to pay for it. I sympathize with the predatory marketing. It's pretty disgusting that they can aggressively hawk debt to people who aren't even old enough to drink legally.

On the other hand, you used the cards, you ran up the debt. Be a man, T.J. Don't be a victim. Be a man, get a job, pay your bills. Even if you only pay them 10 bux a month until you finish school, you are fortunate to have a father who is a lawyer. You are fortunate to be able to get an education.

Why don't you go to the bankruptcy court one afternoon before you file and sit there and listen to some hearings and hear some of the tales of woe. You have no call to be filing bankruptcy. And your father is right, youngster. It's going to be on your credit for 10 years. You are too young to be doing this.

Think it over. The bankruptcy protections are not for you. You are not in danger of losing ANYTHING. You live with your family. You go to school. You have no dependents. Please do not exploit the system. It's not for you, T.J.

Be a man and pay your debt and finish school and go on about your life with a little pride and dignity. You're not impoverished or indigent or the victim of some calamity. Personal responsibility, son. Think about it.

 

[Gomer_P]

I'm pretty sure the Albuquerque Journal does and residents in my town get this paper every day. I'm just curious because my mom told me that she found out yesterday that our friends declared chapter 7 by reading the Albuquerque Journal. Also, please give your opinion on my other thread:
https://forum.freeadvice.com/showthread.php?t=216562

I'm not sure what the creditors can/will do about those assets. Thanks again,
T.J.

 

[Gomer_P]

Thanks for the response, anabanana. Unfortunately you do not know my whole story. In my particular situation the choices are either a judgement with interest or chapter 7 bankruptcy. I'll take chapter 7 any day over a judgement. I simply can't pay my debts and thats all there is to it. It may be on my credit report for 10 years but that is fine with me as long as I get out from under the harassments and relentless fees upon fees upon fees. When I'm 32 or 33 then maybe I'll try to buy a house or something, once I'm making good money. I know that I don't have any expenses and I'm living at home but I am having to work off a lot of debt that I owe a family friend already. I am working for the guy 30 hours a week with no pay to pay him back since I have no money. I will be doing this on and off for the next 6 years or so. If I found another job I'd only be able to put in 10-15 hours per week and I am not willing to do that, especially with how hard school is getting and how hard this guy works me. Try loading and unloading 60 pound hay bails for almost 5 hours per day and then come back and tell me that you can get anther job on top of that AND take 19 hours in college AND maintain a 3.75 GPA. I'm not trying to be mean but my situation sucks, especially when my parents are still mad at me for what I did to the guy and they will not help me with my credit cards in any way. Now that you know the jist of my situation do you still think chapter 7 is a bad idea?