Interested in bankruptcy... |
|
|
|
MrAmazing09
New Poster
Cash: $ 0.45
Posts: 2
Joined: 18 Jun 2013
|
Interested in bankruptcy... |
|
|
Hello! I'm a 22 year old who is looking to go back to school here in the fall to finish my bachelors. Unfortunately I've made some mistakes financially and now have a 26k car loan for a car thats worth 15k as well as 7500 dollars in credit card debt. Basically i cant afford the car anymore. So I'm looking into a voluntary repo or to declare bankruptcy. Now I can afford my credit card bills, just not them and my enormous car loan... I'm also worried if I go with bankruptcy if that will effect my financial aid. Thanks in advance!
|
Tue Jun 18, 2013 5:00 pm |
|
|
oldguy
Senior Member
Cash: $ 751.85
Posts: 3656
Joined: 21 May 2006
Location: arizona |
quote: to finish my bachelors
What field will your BS be in? How many more credits are needed?
Do you live with your parents - and do you have a job?
The FAFSA factors your financial history, your ability/willingness to repay loans. So the govt will look very hard at a bk (the tax payers may not want to lend much to you).
Yes, that's too bad about the car, $11,000 underwater - you probably rolled previous car loans into thei car? You probably pay over $500/m for te car - if you sold it and got a loan for the shortfall, your payment would be about $200/m. That might be better than putting a bk on your record (that clears in 7 years in most states but it is actually something that you live with forever, job interviewers, etc, will always have that info.
|
Tue Jun 18, 2013 6:32 pm |
|
|
MrAmazing09
New Poster
Cash: $ 0.45
Posts: 2
Joined: 18 Jun 2013
|
My BS is going to be a major in French and a minor in secondary education as of now. And I probably am going to need 3 more years of school at the moment. I have 2 part time jobs and live with a friend of mine but can choose to live at home at any time. The rent is cheap so it wouldnt have much affect on whether or not I can pay my car loan. And yes I rolled 2 cars negative equity into this one which i now HIGHLY regret. And honestly I never thought about that... it could be useful.
|
Tue Jun 18, 2013 6:49 pm |
|
|
oldguy
Senior Member
Cash: $ 751.85
Posts: 3656
Joined: 21 May 2006
Location: arizona |
That will make you a High School French teacher?
Is there a community college close by where you can get your core courses out of the way - that's way cheaper than a state school. And these days the CC corses all transfer, the CC students don't lose credits when they transfer to State.
Is there a way that you can get better jobs? It sounds like your two jobs are min wage, part time? (I say that because your income hasn't been enough to live on). When I was in college, I drove truck - gravel truck at first, then 18-wheeler after age 21. That paid a lot better than min wage, plus I could get a lot of hours, close to 70 hours /week in the summer.
|
Wed Jun 19, 2013 12:17 am |
|
|
Guppy2
Contributing Member
Cash: $ 8.20
Posts: 36
Joined: 26 Jun 2012
Location: Fullerton, CA |
This will hurt but I will be honest. You need to know that you are 20k in debt and you are way behind on becoming financially stable and I am not sure if you are willing to take the steps to get yourself out of the hole.
Well first unless you are paying anything less than $50 a month on rent, then you should move back in with your parent. Second sell your car that's worth 15k, because you don't really deserve driving a car of that value in your current situation. If is possible get a bike, that's how I commute to school when I was in college. Also looking at going back to school might not be the best option, as someone mentioned before a French degree really doesn't worth much, and most likely will put you in extra debt.
I don't normally post on here but I feel bad for you so I gave my honest advice. I am typing on my iPad so I got to keep it short, but if you got any question please feel free to ask me.
|
Wed Jun 19, 2013 8:46 am |
|
|
Guppy2
Contributing Member
Cash: $ 8.20
Posts: 36
Joined: 26 Jun 2012
Location: Fullerton, CA |
quote: Originally posted by coaster quote: Originally posted by Guppy2 I don't normally post on here but I feel bad for you so I gave my honest advice.
Heartfelt words honestly expressed are the best possible kind of post there is. Feel free to post as many of those as you have time for; they're most welcome.
I love to talk about money related topics "did my undergrad in economic", almost every answers for this type of situations are so simple and basic. It is easy to achieve financial freedom, I wish op the best but if I have to bet on it, I don't think he will change.
I am sure the op will keep his car and keep on paying rent when he can move back in with his parents, most likely he will still be in the same amount of debt 5 years from now. Nothing personal but just an education guess from all the people I helped and seen before in real life. I hope op can prove me wrong, I rather him getting out of debt and make me look like a troll then me being right.
|
Wed Jun 19, 2013 2:52 pm |
|
|
littleroc02us
Moderator
Cash: $ 384.35
Posts: 1891
Joined: 09 Feb 2009
|
I agree with the CC approach. I went back to college for the second time to a Tech school to get my Computer Administration degree for about a 1/3 of the cost and had a job before I was out making over 40k in 1997. Make sure you get into a field that a return on investment and that there are actually jobs in the field your interested in before going further into debt.
Sell the vehicle and take a loan out for the difference, then take public transportation and start paying down the credit cards by working. It's funny how when you put your mind to it you can find ways to work. I have a family, I work full time and I have a side business. There are nights I only sleep 3 hours because I'm trying to save money to buy real estate property.
Risk comes from not knowing what you're doing. (Warren Buffet)
|
Wed Jun 19, 2013 9:03 pm |
|
|
norrisgallagher45
Member
Cash: $ 2.00
Posts: 10
Joined: 20 Aug 2013
|
Many people wonder if they will be able to obtain credit after a bankruptcy, and the answer to that is an astounding YES. There are plenty of lenders who cater specifically to people who have had a bankruptcy, but when you see the ridiculously high interest rates on the credit card offers you may wonder if you can do better. This article will give you some information on interest rates on loans and credit cards after bankruptcy.
|
Tue Aug 20, 2013 9:41 am |
|
|
|