Anonymous
Anonymous asked in Business & FinancePersonal Finance · 5 months ago

What should I do in my situation? Will I never be able to get my own place?

So I’m in my early 20’s and have been in debt with a credit card company for a few years now (I owe 5K) and never paid them a dime. I got a letter in the mail saying they’re going to sue me if I don’t set up a payment plan. I called to set up a payment plan but never paid them like I was supposed to. Not only am in debt with them but I’m also in debt with my phone bills, hospital bills, doctors office bills... I probably owe close to 10K if not even more. I’m thinking about going bankrupt because I have a small infant that I need to take care of and I’m never going to be able to pay off 10K+ if I’m raising a baby. I’m afraid that bankruptcy will make me never be able to get an apartment and a house down the road because I still have to save up thousands of dollars to do it and I can’t find a job that pays really well and gives me a lot of hours so I can earn money and save instead of having a job where I make just enough to support my baby. All my debts are in collections. I started working at my new job but I’m not getting a lot of hours and I’ll probably make just enough to buy my baby stuff they need. My baby’s dad is not in the picture and I’m currently in the process of getting child support but there might be a chance that I’ll never get it, who knows but hopefully I do. I’m just worried that I’ll never be able to get an apartment or house since going bankrupt will ruin my credit and not going bankrupt will take decades to pay off 10K+.

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  • Jay
    Lv 6
    5 months ago
    Favorite Answer

    You will have to pay a lawyer $1,000 or more to complete and file the papers for you.

    AND

    Your credit was ruined when you failed to make payments on the credit card debt. So that already RUINED your chances of getting a decent apartment or rental.

    Bankruptcy will not make it worse.

    AND...another thing...Bankruptcy will no longer wipe out your debt. Yep. Now the court analyzes your debt and your ability to repay it...and they will look at if you are a healthy adult capable of working. Then they will abate some of the interest that was compounded - LIMIT the rate of additional interest and then determine an amount that you are capable of paying even if it is only $50.00 a month for 20 years.

    AND - finally - if you have the court decide... then you are UNDER A COURT ORDER to pay it back..if you miss payments then...you are totally screwed. Totally.

    You seem to have computer access ...so go on line to your city, state and federal government websites and look for the section that lists the jobs open and start applying for every job.

    Focus on the jobs people hate...like trash pick up...recycling center...animal control...

    Apply for jobs with FEMA. The pay is great - but it can take 6 months to get hired in some cases.

    Contact a credit counseling service...sometimes they can get the credit companies to reduce the amount due without you having to declare bankruptcy.

  • 5 months ago

    You don't really have enough debt to go bankrupt to be honest...but regardless, your credit is currently garbage anyway...so bankruptcy wouldn't be the end of the world.

    Get a second job if you are earning enough in your primary one...

  • 28AKO
    Lv 5
    5 months ago

    First u nd to obtain a copy of your credit report to see whats all in collection. Credit card company can sue you for unpaid bills. Having an infant doesn't exclude u from paying bills. It sounds as you're not making any attempt to pay anyone at this point. If u attempt to file bankruptcy u still going to have to pay attorney fees and filing fees for that. Stop getting things u know you're not going to pay for. If u were pregnant and recently given birth u shouldn't have unpaid medical bills cause of your health insurance should of covered 100% of it

  • ?
    Lv 7
    5 months ago

    Your credit is likely to be fairly tanked anyway. Having multiple debts in collection doesn't do it any favours.

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  • Anonymous
    5 months ago

    You won't be able to get your own place for many years. And bankruptcy will not change that.

  • Judy
    Lv 7
    5 months ago

    It won't mean you can NEVER rent or buy a house, but will affect you for quite a few years. When you get to where you're making enough money to afford an apartment to rent, you might be able to find one from a private owner.

  • kavana
    Lv 4
    5 months ago

    You will never make enough money too do what you want too do unless you are a millionare.The trick is too save abit at a time.They say 10% aside of your income is a gd start.wether its 10-100 put aside a week is an improvement.Pay your debt off slowly.as you make more money you put abit more on repayments,no matter how long it takes.If we all just worry about paying bills and debts than we will have nothing.A little means alot.Life is a marathon not a sprint.1000 steps starts with the first step.you get my drift.As long as we still alive,things can always get better.dnt stress,life is too short.Dont worry be happy!!

  • 5 months ago

    That is not enough debt to declare bankruptcy. Further, overspending - spending what you cannot afford to pay off at the end of the month will not qualify you for bankruptcy. Those debts will not be dischargable. Dischargeable debts are those that you have been paying on a regular basis, interrupted by a loss of a job or a similar disaster that "suddenly" made it impossible for you to continue paying an ongoing debt. Your bank statements would be examined going back several years. Living beyond your means will not discharge those debts. So you can forget buying a house, forget renting an apartment, forget a loan, forget about a lot of things. But you should not be forgetting about child support. You have an obligation to your child to get it so go after it. Also, stop spending money on what you cannot afford. Pay off your debts, what you can afford every month. Budget - write out a plan to get it paid off, hopefully within five years. The sooner the better because court interest is at 10 percent. When sued, you are also going to owe court costs and possibly attorney's fees. Get a second job and ask your parents if they would babysit your child for some of the time while you are at work. If you continue to do nothing, you will have bad credit for the rest of your life. Lastly, show some responsibility for G*d's sake and quit with the excuses. Excuses are not going to help the situation.

    Source(s): Certified Paralegal, with 25+ years' experience.
  • A.J.
    Lv 7
    5 months ago

    You spent money that wasn't yours as never paying it back, and had a baby you cannot afford, and apparently lack of education and skills for a decent job. With your history, landlords cannot expect that you will pay the rent as due. Your credit is probably already fairly dead. Bankruptcy just extends the time it would remain dead.

    People do things to themselves, whether on purpose or lack of knowledge. You probably should declare bankruptcy.

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