I need financial advice

I never really new my father. He was in prison most of my life. He got out when I was 18. To try to make up for his absence, he co signed for me to get a car. It is a red 2016 Nissan versa.

Fast forward 2 years, I lost my job and no one would hire me because I was pregnant. It took me 5 months to get my current job at Casey's. I'm scheduled to get my first paycheck in a week but the bank is telling me that I need to cough up $1,500 right now or they're going to take me to court and ask for it all then and there AND they're repossessing my car. I know it's my responsibility and it's been a long time coming. I deserve this.

I'm considering filing for bankruptcy. I still owe $10,000 among other debts.

I guess my question is, should I?? I took personal finance in high school but that seems like forever ago. I just wanted to learn through other peoples experiences before I make a definite decision. Please, helpful comments only. I know it was stupid of me and its all my fault. I just need some advice on this matter.

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Comments ( 10 )
  • SwickDinging

    I know that seems like a lot of money to you right now but honestly, big picture, that's not much money at all.

    People normally would resort to filing bankruptcy when they're hundreds of thousands, or even millions, down the hole.

    It's not worth it for such a small amount of money. Just call all of the people you owe money to (the bank that holds your main account should be your first priority) and explain to them that you're in trouble financially and can only afford to repay small amounts per month. Be honest about your household budget and agree to an affordable repayment plan. DO NOT LET THEM BULLY YOU INTO AGREEING TO SOMETHING YOU CAN'T AFFORD. Stand your ground. They don't have any authority to force you to do anything until you're in a court of law.

    If they refuse this and demand more money than you can afford then all that will happen is they will take you to court, the court will assess your financial situation and conclude that you can only afford to make the small repayments that you suggested in the first place. The court will not force you to keep up impossible repayments, it's counter productive.

    Being in debt is absolutely awful, I really feel for you because I've been there myself and it feels like it's taking over everything and stealing your future. Don't let it! It's just numbers on a screen. Debt collectors are assholes who have very little power and they make a living out of trying to intimidate people. Stay strong, study up on your rights and just face this shit head on. Remember that as soon as you decide to face your debts, that's the last time you'll owe that much money. It shrinks a bit every month, and so do your worries :)

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    • Tato

      I don't think there's too much to be added. +1

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  • raisinbran

    Here's some financial advice: don't buy something you can't afford. You put yourself in debt for a new $12,000+ car that you had to get a co-signer for, instead of looking for a used car. Even if you don't file for bankruptcy, you are destroying your credit over nothing. Figure out something with the bank

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  • JD777

    Bankruptcy will hang with you like a dark cloud for a very long time. Even if people say it’s erased after 7 years, the stigma can last longer.

    Just about any creditor is willing to enter into a deal for a payment plan to settle debts as opposed to taking legal action or taking property. Talk to them openly and honestly and you might be surprised how they soften their approach.

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  • leggs91200

    First, i am NO attorney but below reflect my own experiences with debt -

    Creditors always talk bullshit about how they will make the entire bill due immediately. If someone HAD the god damn money then they would pay. It is just the creditor version of a temper tantrum.

    Bankruptcy typically costs about $1,200 if you do it through an attorney. It is not a horrible or shameful process.
    Some say $10,000 isn't a lot of money but it sure as hell is if you do not have it. Even $1,000 is a lot of you do not have it. More on that later.

    About the car - They are not likely just making idle threats when talking repossession. How much money they can get out of you is a different story. If someone makes $217 take-home or less per week, they cannot take jack shit for consumer debt.

    Like Swickdinging said - yes they use every scare tactic there is. Here is my advice about the non-car debts - if you cannot or will not pay them, do not bother communicating with them. There is NO point. If you DO communicate with them, they will never leave you alone.

    NOW FOR THE FACTS...

    If the car gets repossessed - yes they will still try to get you to pay for it. If they get a judgement, they can likely take part of your paycheck if you do not make payments. They cannot leave you with less than $217 a week. The most they can take is 25%. examples -
    You make $400 a week, they can take $100 (100 is 25% of 400).
    You make $250 a week, they can take $33 (250 - 33 = $217)
    You make $200 a week, they can take NOTHING.
    BTW if you work a job with varying hours, how much they can get will depend on each week. If you get paid bi-weekly, they have to leave you with $435 after taxes.

    So should you file bankruptcy?

    It sounds to me like since you have a child on the way, that will limit your ability to work a lot.
    If you already have seriously past due debts PLUS the car, your credit is likely pretty bad so filing bankruptcy is not really gonna make things worse, but it WILL erase your debt (except student loans or money owed to the govt for tax, child support, etc).
    Be REAL honest with yourself about your situation. Do you have solid plans in place or more the "I will figure it out somehow".

    If they take back the car, I say file. Nothing more to lose at that point. Your credit will be fucked anyways and you will owe more than you can pay off anytime soon.

    My final advice is this - ask bankruptcy attorneys if they offer a free consultation. At the consultation, be completely honest about your situation and ask what options you have. They are not going to belittle or anything. They will stick to the facts. They do this for a living. Why shouldn't the want YOUR business?

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    • drat

      Goddamn nickvey, stfu.

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      • leggs91200

        Drat, please go be a needle dick elsewhere.

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  • nikkiclaire

    The bank doesn't really want your car. Work something out with them and stick to it.

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  • Also I didnt mention that I live in Missouri, if that makes a difference

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    • SmokeEverything

      I was going to tell you to have an abortion and do drugs or some boring shit like that but a lot of people wrote some really long stuff here and Its gonna take me too long to read it all to see if anyone suggested that already. Best of luck with your situation. You can get an old civic on cragislist for like $300 in missouri probably.

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