I need help badly. Should I apply for bankruptcy? Or continue to make minimum payments on my credit cards?

Question

I have three credit cards that have a combined balance of $5,500. I have student loans which amount to $5,000. Lastly, I have medical bills that amount to $2500.

That's a total debt of $13,000. I'm currently working at Fedex as a package handler and I make about $110 per week. My salary varies because we don't work a set amount of hours. Sometimes we work 15 and the next week we might work 18. Just depends on the volume of packages.

I have tried to pay my credit cards first, but even if I pay more than the minimum payment, the interest rate will just make the balance higher. If I keep going like this, I will never pay my credit cards, student loans, and medical bills.

It's been three years since I've finished college with a B.S. in computer networking and I have not found a job yet. This is embarrasing and sad that I wasted all my time and money to end up working as a package handler at fedex.

So, should I file for bankruptkcy? Which kind? Chapter 7 or 13? Thanks for the advice!

Answer 1

you should look into a debt consolidation loan. Its where you can get a loan from a credit union where they will combin all your debt and cut  a check for that amount which will payoff you bills and instead of having 5 sperate bills you will have one with the credit union for a set amount a month with a lower interest rate. Alot of people do this to avoid bankruptcy.

Answer 2

$13,000 is a significant amount of debt but it is not nearly enough for you to be considering bankruptcy.  While your debt is a problem, your income is a problem as well.  You said you couldn't find a job (I'm assuming that you mean you can't find a job using your degree).  However, working 15-18 hours a week will never earn you enough money to get rid of that debt and stay afloat.  Ask your boss for more hours.  If they can't do that, then find a second job working 20-25 hours.  This will double your income.  By doing that, you'll be able to pay all that debt off in a couple of years without much trouble at all.

Answer 3

Are your expenses more than your income?  You need to figure this out.  What are your monthly bills such as rent, credit card payments, loans payments, utilities, etc.  Add food and gas costs, plus other occasional expenses such as haircuts, toiletries, etc.  Is it almost or more than what you make?  At $110 a week, I would think it is.

Are you making minimum payments and the balances stay the same or actually keep going up?  Are you already behind?

Do you think that you would be able to get a better paying job in the NEAR future?

If you answered yes to these questions, your first step is to consult with a credit counselor.  Also call your student loan lender and ask to see if you can get a deferment or forbearance.  If you can get:  1) a forbearance on your student loan, 2) a reasonable payment amount for your credit card that allows you to have discretionary income monthly AND pays down the debt, then first try credit counseling.  If not, then see a bankruptcy attorney.  At your current income, you would probably qualify for a Chapter 7 liquidation.

Answer 4

Contact   www.cccs.org

This non-profit will set up repayment plan for you, if that is a workable option.

Answer 5

You could default on them but not get another one. If you have savings of any kind then you shouldn't need credit. If you need a credit car for rentals or something then you can now use your bank card as a credit card.

I would not file for bankruptcy because then you would never get a job in cmputers. It won't affect your renting but will affect your job qualifications.

Now when you file for bankruptcy you have to repay everything anyway. It is not in your best interest.

Honestly, I would go for default and deposit the amount you would've paid into a savings account. Then in 4 or 5 years when they are sending oyu nasty letters they will send you one around tax time that offers you to pay half and settle with them. You can settle for half the amount and use the savings to pay it off.

If you are looking for a job in computers try applying in "The Woodlands, Texas". They are all over the internet and they are listed underneath Houston sometimes. There are plenty of jobs there for computers that would appreciate your B.S. in networking. Give it a whorl on the google or ask search engines, and good luck. There are some major computer companies here in Texas, like Hewlett Packard, and IBM, just have to do a search for them. The HP office is also in a great part of town where it is not too expensive to live. You might pay about $600 a month for a one bedroom apartment, while making $4,000 every two weeks. Not too bad if you ask me. Groceries aren't that bad out here either. There are some apartments within bicycle rides close of the HP office, and some right across the street from it.

Hope this helps you out.

Answer 6

Hm I have a lot of debt like you, and I'm doing debt consolidation. Going bankrupt is a bad idea. :/

Here's the site I got started consolidating with: http://www.ifreebies.info