Bankruptcy
 

Anybody here ever do it? What was your experience with it? I have a lot of very old credit card debt that I couldn't afford to keep paying on, and a lot of student loans that I have yet to really start on. Got my degree (in theater = dumb). I was teaching guitar lessons for cash through most of college and living off of student loans, then I was out of work for a while and now I'm living back home at the age of 29 (ouch). I did get a job on the production line of a fiberglass company for now, but the job isn't supposed to last past November. Got my summons a few weeks ago for a Discover Card debt. They want their money, and I don't blame them. But man, I really don't want to get my wages garnished and bank accounts frozen. This is a HUGE hole. Need out.


Any advice?

Hang in there and remember It's not your fault

Gun....bullets......nah just drink the poison under the sink.

Ha ha ha. (I assume that's sarcasm)


Seriously, I know I made this hole. Regardless of how I got here, I'm here. Now it's about what to DO.

when i was having my credit problem i went to a self help group (which was surprisingly cheap 30 bucks a week or so). some of the steps were

1.) admitting that it wasn't your fault this happened. Credit companies use preditory tactics to seal your fate.
2.) trusting a higher power to get yourself out of debt
3.) Try to hold on to as many things you worked so hard to get.
4.) Reconize the kindness in others to help you get out or DON'T BE AFRAID TO ASK FOR HELP!

It tastes like shit. I'd go buy some differently flavored poison, but it's precisely that kind of frivolous spending that got me here in the first place!

I don't think bankruptcy gets you off the hook for those student loans. I'd start working 2 jobs if I were you.

in one of the lessons we learned to turn ourselves and credit over to a higher power. So I went to church and they put out a second collection for me. It wasn't enough to save my beloved sound system, but I was able to keep my bread maker.

From what Ive heard if there has already been a court date set you're screwed, bankruptcy wont help you. And bankruptcy doesnt wipe out student loans either, you're still responsible for those no matter what.

I would think about asking your parents for help, or pawning in someof their stuff. Good thing about parents they will love you no matter what, and when you do get the money back you can buy it cheap at the pawn shop

ROFL

Don't listen to this crap. Society owes you. The American people will pay your debt off. Consult an attorney and file Chapter 7.

You can no longer discharge student loans under any chapter of bankruptcy, unless you can credibly argue that you cannot repay them without undue hardship. This basically means that there's no chance for you to repay them and maintain a minimal standard of living. Since he's living at home and presumably could indefinitely I don't think he has an argument for undue hardship.

Antifreeze

I don't want to kick you while you're down, but you waited a bit too long to act on this one... you need to seek professional help (many sites to view and places to call, just do a google search).

Society does owe him, but bancruptsey is just another way the game gets you hooked. You will never get out of debt unless you take responsibilty and steal some shit and pawn it in.

No offense but the only way to get a job with a theatre degree is to teach......Theatre.

[QUOTE=Demonpenz;6168184]Society does owe him, but bancruptsey is just another way the game gets you hooked. You will never get out of debt unless you take responsibilty and steal some shit and pawn it in.[/QUOTE]

ROFL

Well, I should have known better. I didn't have the money, and thought I was going to be a rockstar (not literally) in a few years. Stupid. But I def agree that the credit card companies have dicked me with interest rates and penalties. I paid them for years without ever using it and never even made a dent. As for holding on to the stuff. The stuff is all gone. I sold some of the bigger items to pay for my move and some stuff I had to pay off when I came home from college. Had to sell stuff quick and cheap too. (instruments and electronics). As for asking for help... I guess that's what bankruptcy is for. And I certainly wouldn't be the first. But it's embarrassing to have gotten so far behind the 8ball. My debt is quickly going from nuisance, to problem and now I'm afraid it's going to wind up being a "gateway to a shitty rest of my life" if I don't act on it now.

have you ever thought about selling drugs?

Most theatre majors have two hands and two feet, which means they can find work somewhere.

The first step through that gate will be a bankruptcy.

Well, it's definitely going to suck for a while... but you'll get through it.

Alot of my friends needed money to get their gigs going to by decent guitars etc, and then the bars they were playing at wouldn't pay them shit. Well you could see that they weren't going to make their money back playing at bars. Their only choice was to start selling weed and picking up a few more gigs on the side. It was hard work, and they even had to swallow their pride and play mustang sally instead of their original songs, but it seems like they are doing better now. You just need to play more gigs.

he paid for his degree, he is above working labor jobs for sure.

Shooting Heroin has gotten me through some rough times. Keep your chin up!

And, sometimes... when life has you by the balls (by your own doing) you have to buckle down, set your priorities correctly and focus on a more consistently paying line of work.

So your advice is for me to NOT do it, huh? Care to elaborate?

This is the kind of thing I was hoping to get out of this thread. (besides getting flamed a bit by the crowd)

It used to be that bankruptcy was on your credit for 10 years. Don't know if that is still the case.

I am not sure that at age 30, doing something that will cause no one to loan you a cent until you are 40 is a good solution. No cars (unless you want to pay a rate that should be criminal), no buying a home, in some cases getting rejected for rental housing, paying more for all forms of insurance. The cure is worse than the disease, and it will last longer than the suffering would in actually paying the debt off (which is how it should be).

I would think it would be much better to just live at home and work two jobs for the foreseeable future to start digging out. Waiting tables, tending a bar, whatever.

I'm currently working a "labor job," thank you very much. :)

I would listen to this, we finally sucked it up and started playing cover songs at bars. It was hard work, and no one wants to play Sweet Home Alabama, but we made it through, there were times where we thought we wouldnt't make it.

If you don't mind saying, how deep are you?

Sounds like good advice. Just not sure it's feasible. The job I have is swing shift now. It's good money, but like I said, when they hired me on, it was with the knowledge that I probably would get laid off sometime in November.

You're going to be carrying that bankruptcy around with you for a long time. You need to give Mr. Flopnuts a PM. He can give you good advice.

Ever think about going in the service? Since you have a degree you might get accepted as an officer.

The good part of that is even if they garner your wages you'll still have food and a place to live. Even if they both largely suck.

Good lord. ROFL

About 10K in credit cards and unsecured debt.
About 70K in student loans. Most of it government loans. Some private.

That's actually great advice.

Thanks. I appreciate the honest feedback.

Move three states away and start using an alias.

Good God Man, he already stated he didn't want to die.

I know, it was hard sucking it up and realize we were going to have to stop with our own music, but sometimes it's time to face facts. Our Album Microwave waffles needed to come second, and first came getting our bills payed off.

I would move to Mexico and refuse to speak Spanish. :clap:

That is all true, plus you could acquire some skills that would be more marketable.

The mortality rate is slightly less than 100%. :D

Have you ever thought about dating a fat chick? Ususally you can find a really sorry one that has a good job and steal her money long enough to leave her.

Man credit cards suck. Have you called the companies and tried to work with them? It seems to me you just decided fug it, and stopped even trying to pay the minimums...

I don't know a good solution, but the first step is calling them and working out a payment schedule!

I've never been late on my Credit cards, and haven't used one for over a year. I called when they tried to raise my interest rates from 9% to 18% just because of the economy, not because I had been late or delinquent.

I had been paying 50 dollars over the minimum, but the increase in interest rate caused the mins to jump over $100. I called, told them that I could not handle that big of an increase, and was there anyway we could talk it out.

They said no problem, we'll just agree that you won't ever use the card again until balance is zero. Also I can't apply for or get any more credit cards during this time. While we have this agreement, your interest rate will be a flat 4.97% and you will pay such and such payment every month until paid off.

Pretty sweet deal, and it keeps my credit clean. I only have two credit cards, one has a rate of 3.97% (American Express) and it is almost paid off. Didn't negotiate with them, it's just always had a low interest rate.

My other card (Visa) has a ways to go yet, but definitely going down every month.

ROFLROFLROFL

The 10k in CC really isn't much... but 70k in student loans, wow... that's a lot for a degree that you're not targeting a line of work in right now. Again, not trying to judge, but you should be able to work something out with the CC companies.

Your issue is the student loans. You mentioned that you "lived off" your student loans... you did more than just pay your tuition I suppose? I guess that's the part I don't get and that's the reason you're in a mess, other than not having a consistently good paying job.

See if there is something you can do to work out a plan with the CC company... and if all else fails, enlist.... or bust your ass to find an actual job with a paycheck every 2 weeks.

You don't have to go in the military, there is always the air force




<-- not qualified to make that joke

Dave Ramsey is a pompous douchebag. Tricking Americans to slave away, trying to pay off impossible debt. fuck you Dave Ramsey!

Is there anyway to pay off your debt using a different credit card?

This. The CC companies can be pricks, but if you proactively call and work with them... they can be very good to you. Then, it's up to you to never use them again.

I don't use CC's anymore and I canceled my AMEX... we let our debt get a bit crazy and we're working to get it down and ultimately paid off. Budgets can be a pain in the butt, however it's amazing what you learn you can do with out and not miss.

Well, I'm not saying I agree with everything he says... but the people that find themselves to be in crazy debt can only look in the mirror for blame. There are ways out... they are all going to suck and be painful, but one has more long lasting pain.

While usually good advice, they won't accept him more than likely.

Credit problems (even pretty reasonable credit problems) are a major no no in the military. And since he's been ordered to court already, and is on the verge of Bankruptcy it will be dicey.

I would say zero chance a theater major is going to be commissioned with debt problems. I mean zero offense by this, but military deals with a different kind of theater anyway.

If you were a doctor, engineer, lawyer, something of high demand they might work with your debt problem.

They view debt as a liability, as you are prone to take bribes. This keeps you from getting a security clearance, which is important for enlisted folk, let alone officers.

I'm not saying don't try it, can't hurt and he is right. You'll have a house and food. O-1s make around 26k a year, plus probably 10k more in nontaxable/ungarnishable food and housing money.

There's a cycle that would never end... he can't pay the minimums on the one he has, he has a summons to appear in court... his credit is likely SOL.

its also important to not gain what we in the biz call "stress debt" somethings you replace the debt in money with stress I.E. working more gigs, picking up extra work passing out flyers at the mall. You need to take care of yourself first and not worry so much about the money once you get to that place, you will be debt free

Are your student loans in deferrment? Have you the ability to put together some cash to settle with Discover? Maybe parents? You could probably get them to take $0.30 or $0.40 on the dollar to settle. Someone said $10k isn't that much CC debt nowadays. You should be able to work something out like others have said. If you haven't yet, I would try to defer the student loans also.

Demon, demon, demon

I don't have much advice, except -- don't take this man seriously.

<---- qualified to make that joke.

I laughed and I was in the Air Force. We do our part, but we are by no means bad asses or at anywhere near the kind of risk that the other branches are in.

If he's been summoned to court, I'm guessing Discover has turned his debt over to a collection agency... so, he's likely dealing with them now on behalf of Discover.

70K for your student loans? **** me.

Anyway, shoot Flopnuts a PM. I think he is one of the best resources on the board. Fraz had a good suggestion also.

My suggestion is cut all of your unecessary expenses (cable, internet, get a prepaid cell, eat Ramen, live in a buddie's basement, etc.) And get to work. Work 2 jobs and do as much as you can on the side.

Prioritize your debt by interest rate and get to work.

For your student loans, you may be able to get on a graduated plan that allows you to pay less now, and increases your payments. You have to understand what you're doing there, but it may allow you to get out from under CC loans.

The biggest thing you can do is change your lifestyle to free up cash.
Posted via Mobile Device

I don't even have to be in financial trouble to lose my security clearance. Just not maintaining excellent to good credit is enough to cost me my job.

When I was at the Dept. of Homeland Security about 1/2 the poeple they hired were fired within 6 months for financial issues. They didn't lie on their background checks but the check goes much more deeper than just a credit score background check.

Just go back to school. While you are in school you don't have to repay student loans. Just stay in school the rest of your life.

FInd a non-profit debt consolidation company, like Consumer Credit Counseling Service. I've used it, and it's great. For a nominal fee (25.00 a month) they will work out everything with all your creditors, get them to stop interest and late fees, and they come up with a payment you can afford and a timeframe. Then you just make your payment to them once a month until it's paid off.

The student loans...well, that just sucks. But you need to get 2 jobs. If you kNOW you are going to be laid off in November, then don't sit around waiting for that crap. Get out there and get a couple of jobs, quit the one that's only good for another month anyway, get your credit cards in order like I mentioned above, and just start pounding on those things along with your student loans. If you ever want to get out of your mom's basement and buy a house or even rent an apartment, the last thing you want is a bankruptcy on your record.

Good luck!

Mcan - question for you.

Have you been consistently paying 'anything' to the CC or the student loans each month ... or have you just said 'to hell with it, I don't have the money'?

If you're making any effort at all to pay something monthly, while it isn't making a dent, it's showing you are trying and could help your cause. If you are months behind with no payments and no proactive phone calls to state why... I don't know that they will do anything to help you.

I think there are teaching programs out there that forgive some student loans if you serve in an underprivileged public school in the same state you went to college in. Might want to look into that. You'll have to take the Praxis and become certified, probably have to go to grad school and work on an Education degree as well. Just a thought. I don't know.

The resources are out there, you just need to work for it The pet business right now is booming, try stealing a dog, then call a local chinese place and see what they offer for it's pelt and meat, then wait to see what the rewards are for lost dog, then take the best offer.

Sadly there are a lot of poor pet owners that would be oh to happy to pay you for bringing back the dog you stole from them.

Dumb bastards like me think of them like kids. Ransoming a dog probably doesn't have the same penalty as ransoming a child though...

Nice cross thread humor Demonpenz, was good meeting you the other night too.

Well, I don't know much about where you live... but, knowing your current job is ending in about 3 weeks... I would wait as many tables as I could. Do some telemarketing or something like that.

simple income statement can help you keep afloat

Wow. I wouldn't even think about the military doing credit checks on new recruits. That's ****ed up.

I agree with these points in this thread:

1. Avoid bankruptcy at all costs
2. Call your creditors and try to work something out
3. Work 2 jobs. Don't be proud about what kinds of jobs they are either. Take what you can get.
4. Don't spend any more money. If you buy your own food, eat cheap. No cable, no cell phones, no monthly expenses that aren't absolutely necessary.
5. Sell what you don't need. If you have a car that's worth something, sell it and buy basic transportation to get to your jobs. Take any surplus and apply it to debt.
6. Consider the military option that Frazod suggested.
7. Talk to Flopnuts.

Good luck.

You should not be allowed to declare bankruptcy, you should be spending time in prison for grand larceny.

You might be right, but I'd look into it anyway. It's hard to believe that we'd have an inflexible policy of rejecting people with credit issues while we're involved in 2 significant military operations.

mcan's the victim here.

a little judgemental today, are we?

No. Theft is theft.

this is the kind of negative stuff you are going to encounter but you need to focus on your stress debt and ignore this crap. I remember I was a theatre major too and I was working at quick trip. I told my boss I DON"T need this shit I am a theatre major, I was lord tybolt in romeo and juliet, he then said i should apply my major to ACTING like a quick trip employee. Well I stole a bunch of sunflower seeds and rooster booster energy drink and quit and applied the stress I saved to my stress debt. I am still in debt today. but i don't let assholes like that get too me