Should I file bankruptcy?

Question

I am 21 years old. Unfortunately due to bad money management skills and a gambling problem I have racked up over 10 grand in credit card debts and also overdrawn bank accounts, plus a few various other debts. Every month they keep adding interest and other sorts of stupid fees. I've already been reported to chexsystems by wamu so I don't even think I can open up a bank account in order to save money. I have debt collectors calling me all day saying they are going to sue me and that I will owe alot more money then I already do. So let me ask you, would I just be better off filing bankruptcy at this point. It's gonna be very hard for me to make this kind of money since I am young and unemployed and not many people are gonna higher me for a job where I could live and afford t o pay off debts. My credit is also in the low 400's. So whats the best option here?

Answer 1

Go meet with a Bankruptcy Lawyer. He/She will be the ONLY one who can offer accurate advice after reviewing your exact situation.

First consultations are always free (but you need to be prepared with all your info...you will only get 1/2 hr at most with the lawyer). When you first call them, they will tell you what you need to bring in.

Remember this is just a consultation, there's no pressure.  They will tell you the best course of action for you, AFTER seeing your exact situation.

Also, VERY IMPORTANT, all lawyers are different.  If you don't like the first one you meet with, go see a couple different ones. (like if they didn't answer all your questions, or seemed way too rushed, or pushy, or whatever)

You will certainly get all kinds of different answers here on this board, with all kinds of conflicting information.  It is essential to see a lawyer. They are the only ones who will be able to give you the correct advice.

Answer 2

NO do NOT file a bk this will only make life harder.  I was 18k in debt and im 24. I now only owe about 3500 and it only has taking me since the first of the year to pay it down this much. NO I don't have a great job where I make alot of money I just work alot.  I would suggest you find employment right away any job you can get is better the none.  Once you get one job then find another and work your a$$ off and use all money to go to debt.  I would recommend you go the library and get a book by Dave Ramsey called "The total money makeover".  This will open your eyes and really make you want to get out of debt and it will show you how to get there one step at a time.  It's not  going to happen over night but with alot of hard work you can probably be debt free by this time next year.  A few jobs that make decent money that anyone can get is delivering pizza(work friday and saterday night to make the big bucks), mowing lawns, racking leaves, sells jobs and work your butt of to make bonuses etc.. If you have your own place look into getting a roommate to split the bills with you can find roommates at roommates.com.  I hope this helps but keep your head up and just don't make the same mistakes again that you have already made. Use it as a lesson learned, go find a job and make it happen.

Answer 3

Bankruptcy sounds like the way to go at the moment, though even that is not without costs. As you do mention gambling problems, I might suggest you contact one of those help groups in your area (gamblers anonymous or some such). Not only do they have counselling in regard to gambling but they usually offer help in other areas, like the sort of mess you're in right now.

Answer 4

It will cost you about $1,600 to hire an attorney and file for Chapter 7 bankruptcy.

Your credit card debt may be discharged, so will medical bills, but you need to keep making car payments, rent, mortgage, etc..

Answer 5

Okay.  First and foremost, you need to get a job.  I don't understand how/why/what makes people with this situation, remain unemployed.  Get ANY job you can, and keep it until you can get something better.  There are no free rides, as I'm sure you've learned with gambling.  I lost several thousand dollars playing poker when I was your age, and to this day, I *will not* go near that game.  You need to make a firm decision that you will stay away from gambling also.  

This website has a lot of useful information for people in your situation.  http://clarkhoward.com/shownotes/categor...

I would recommend starting a program with http://www.nfcc.org/ prior to filing for bankruptcy.  $10,000 isn't a huge amount of debt.  They will negotiate with your lenders to a) stop tacking on fees b) stop calling you c) work out a repayment plan

This is dependent on you getting a job.

Answer 6

NO, I would NOT file bankruptcy.  It is a lot harder to file bankruptcy today than years ago.  Bankruptcy stays with you and you are young, so you seriously need to avoid that at all costs.  Contact all the companies who you owe money to and work out an agreement with them even if it is a small amount of money it is your commitment and sorry, but it is your problem and you need to fix it. Contact someone who can help you without judgement because this all makes you feel bad as it is: attorney, financial advisor, or credit counselor.  I understand you feeling as if you have no other choice, but you will have to bite the bullet and proceed on admitting you made the errors and are willing to fix them.  Collection companies are not going to work with you, however, all they want is the money because they get money for all the money they collect - never mind how rotten they are to you in the process.  I would advise you to also find some employment somewhere and the gambling problem you have should be focused on as well once you have everything else in it's place. Keep plugging along and get some people who can help you out and you will work through it - without claiming bankruptcy.

Answer 7

Pretty pompous on your part to call them "stupid" fees based on your "stupid" management of finances. Those "stupid" fees are assessed because the banks lose money due to "stupid" people like you mismanaging their financing and filing bankruptcy. That all being said, filing bankruptcy at 21 and only being $10,000 in debt may not be feasible.

Bottom line you need to become employed again. I don't know your skills (or even if you have any) but whatever happens to this $10,000 in debt, you need to increase your income and improve your "stupid" cash management skills. Good luck.