Issue #1: I need a new job. On average, I apply for 20-30 jobs PER DAY. I have been told that, since the economy went bust, EVERYONE checks the credit of a potential employee. Obviously my current poor credit is enough to render me unhireable. If I declare bankruptcy, how much worse can (will?) my job hunting situation be? I currently temp at a front desk for just 30 hrs a week, no benefits.

Issue #2: I need to be able to move out of my mother’s house. She is very kind to have opened her home to me when I am in such need, and I try very hard to stay out of her way, but she makes it very clear that it’s a huge burden on her to have me around (I know she is right, but it makes it no easier). She is also 100% against me declaring bankruptcy, not only for the impact it will have on my life but for the stigma it will bear on hers. I need to be able to have my own place again. But, my current credit is so poor AND declaring bankruptcy would remain for 10 years on my credit report, that no one would possibly rent to me. Which is less devastating to a potential landlord? Terrible credit and a ridiculous debt-to-income ratio, or a recent bankruptcy claim?

Issue #3: My car is currently worth about $9k less than what I still owe. I have tried to sell it back to the dealership, they charged me $5k and even when I left the car with them, they immediately called me back to pick it up because apparently something in the undercarriage was repaired wrong (oh and getting my $5k back was a real hoot, let me tell you.) It has already been repo-ed once and I had to pay money I didn’t have to get it back. I have tried selling in private forums, I have tried refinancing, I don’t know what else I can do. No one will buy a car worth almost ten grand less than they’re paying. I want very much to keep it, but I can’t afford it. And yes, simply letting it go would COST ME MONEY. Dave Ramsay says, "sell the car." What would Dave Ramsay suggest in this situation?

Issue #4: I have no savings. If I declare bankruptcy, I will be living off of my income alone (my savings deteriorated during my time when I was unemployed, after which my debt increased exponentially. HOWEVER. If I declare bankruptcy and can divide my piffle paycheck so that at least SOME of it can go towards savings, then at the end of ten years when the bankruptcy falls off my credit report I will have something, instead of nothing. Or just…more of the nothing I have right now.

Issue #5: I can’t pay these bills. (see the price outline in the first paragraph.) Won’t these companies just sue me anyway, if I don’t declare?

Look. I love and respect my mother (who is not a financier.) I do not want to make her sad because her daughter went bankrupt before the age of 30. But let’s be realistic here. How much worse could my situation POSSIBLY GET if I declare, file for Chapter 7 and get my debts forgiven so that I may begin to rebuild.

I would very much appreciate ANY input, on a REALISTIC, REASONABLE alternative to me filing for bankruptcy. I have listened to "Financial University" by Dave Ramsey about 1000x and I’ve read Suze Orman’s books and seen her show.

It would bring me so much comfort, and I would so appreciate it, if my peers on yahoo who have experience or knowledge with this kind of thing could reach out and give me their honest, informed opinions.

Actually filing for bankruptcy is not as bad as you think. While it will take up to 7 years for your credit to repair. It isn’t so great now because you still can’t pay the bills. As for your mom. Why would she be shamed. No one would know you filed unless you or she told them.

The job - keep looking not all well paying jobs perform a credit check. I was unable to get a job as an airport screener but was able to get a well paying government job. (funny)

Living with mom - Moving will not be as big an issue as you think.

The car - filing for bankruptcy you can opt not to keep the car and they have no choice but to take it or give it to you for free. Sounds like they have bullied you into keeping a vehicle you did not want. However you may have trouble getting another car. Not impossible but you will not get the greatest deal interest wise. But you can get something more affordable.

Suing - Yes eventually they will sue you and most likely win. They are then able to garnish up to 1/3 of your paycheck. Which will make your situation worse.

Storage Bill - Have a sale and sell off most of your stuff. Keep your bed, dishes and some personal items. Everything else can be replaced once you get back on your feet.

Medicine - If you have a free clinic in your area. The health care is great and the medication they prescribe is free.

Long story short. It may benefit you to file. Consult an attorney

Must Bankruptcy be my only solution? I entered into a Debt Management Program (to have interest reduced), 4 months ago. Until then, I had not even had a "late payment" in over 8 years (no longer the case thanks to the DMP).

I was forced to file Bankruptcy in 1999 (so it is about to be removed from my credit file), due to my divorce and excessive student loan payments.

Now I am about to "start all over again" due to my inability to obtain reasonable interest rates on my debts.

Can anyone suggest alternatives to Bankruptcy?

Every creditor you have will be willing to negotiate with you rather than have you file a BK. Contact them individually, and negotiate special payment terms, and reduced or zero interest rate. Tell them your story, back it up with documentation of your situation.

You have nothing to lose by trying, they have everything to lose by refusing.

Go to free legal aid for assistance if you need more advice.

Contact your local Red Cross for a referral to the local free legal aide society to confirm that you are judgment proof. It sounds like you are. SSDI can never be garnished for credit card debt. You could just stop paying and they’d be powerless over you. Just prepare yourself for months of a lot of creditor/collection agency harassment though. It would be stressful, but after a while they’d give up. Under this condition you would not have to file for Chapter 7.
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Sometimes filing for Chapter 7 bankruptcy is in your best interest. Keep all options open. From your post I get the impression that you’d be paying on this debt till the day you die and the principal (actual amount owed) would not really go down much. I personally do not have a lot of compassion for banks and credit card companies in cases like this. If paying this debt back means living in virtual poverty till the day that you die, then explore filing for Chapter 7 bankruptcy.

Another option: SSDI cannot be garnished for credit card debt. If you do not own a home and you don’t have any real savings, then you are judgment proof. This means that although you still owe the debt, your creditor is legally powerless over you to collect on it. In this case you could stop paying on the debt and they could not really do much to you other than trying to annoy you into paying. If they took you to court under these circumstances, they’d be left with a judgment that is not enforceable.

So talk to your own attorney in person. That is the best source of legal advice regarding bankruptcy.

Issue #1: I need a new job. On average, I apply for 20-30 jobs PER DAY. I have been told that, since the economy went bust, EVERYONE checks the credit of a potential employee. Obviously my current poor credit is enough to render me unhireable. If I declare bankruptcy, how much worse can (will?) my job hunting situation be? I currently temp at a front desk for just 30 hrs a week, no benefits.

Issue #2: I need to be able to move out of my mother’s house. She is very kind to have opened her home to me when I am in such need, and I try very hard to stay out of her way, but she makes it very clear that it’s a huge burden on her to have me around (I know she is right, but it makes it no easier). She is also 100% against me declaring bankruptcy, not only for the impact it will have on my life but for the stigma it will bear on hers. I need to be able to have my own place again. But, my current credit is so poor AND declaring bankruptcy would remain for 10 years on my credit report, that no one would possibly rent to me. Which is less devastating to a potential landlord? Terrible credit and a ridiculous debt-to-income ratio, or a recent bankruptcy claim?

Issue #3: My car is currently worth about $9k less on what I still owe. I have tried to sell it back to the dealership, they charged me $5k and even when I left the car with them, they immediately called me back to pick it up because apparently something in the undercarriage was repaired wrong (oh and getting my $5k back was a real hoot, let me tell you.) It has already been repo-ed once and I had to pay money I didn’t have to get it back. I have tried selling in private forums, I have tried refinancing, I don’t know what else I can do. No one will buy a car worth almost ten grand less than they’re paying. I want very much to keep it, but I can’t afford it. And yes, simply letting it go would COST ME MONEY. Dave Ramsay says, "sell the car." What would Dave Ramsay suggest in this situation?

Issue #4: I have no savings. If I declare bankruptcy, I will be living off of my income alone (my savings deteriorated during my time when I was unemployed, after which my debt increased exponentially. HOWEVER. If I declare bankruptcy and can divide my piffle paycheck so that at least SOME of it can go towards savings, then at the end of ten years when the bankruptcy falls off my credit report I will have something, instead of nothing. Or just…more of the nothing I have right now.

Issue #5: I can’t pay these bills. (see the price outline in the first paragraph.) Won’t these companies just sue me anyway, if I don’t declare?

Look. I love and respect my mother (who is not a financier.) I do not want to make her sad because her daughter went bankrupt before the age of 30. But let’s be realistic here. How much worse could my situation POSSIBLY GET if I declare, file for Chapter 7 and get my debts forgiven so that I may begin to rebuild.

I would very much appreciate ANY input, on a REALISTIC, REASONABLE alternative to me filing for bankruptcy. I have listened to "Financial University" by Dave Ramsey about 1000x and I’ve read Suze Orman’s books and seen her show.

It would bring me so much comfort, and I would so appreciate it, if my peers on yahoo who have experience or knowledge with this kind of thing could reach out and give me their honest, informed opinions.

Make an appointment with a bankruptcy attorney. Having a bankruptcy on your employment-related credit report will be no worse than what employers see now if they do a credit check, and may be somewhat better (it shows that at least you are making an attempt to resolve your debts one way or another and get a fresh start).

Unlike what some people may say, it does not cost $3500 to file Ch 7 bankruptcy in most areas of the country, and CH 7 does indeed discharge your unsecured debts (with a few exceptions - like child support arrears and student loans). Perhaps for an extremely complicated Ch 7 in a major metro area on the East or West Coast it might come close to that, but in most areas of the country an uncomplicated Ch 7 will cost you between $1000-$1500 and many attorneys offer some kind of a payment plan.

IF you have no assets - for example House in ‘negative equity’ and old / second hand car … or there is NO POSSIBILITY of every paying off the debts (for example, you are long term unemployed / sick) then Bankruptcy is likley to be the better option ..

You need to do some research yourself (.gov.uk web site, Citizens Advise Bureau) NOT some ‘Debt Management’ Company that WILL ‘push’ you into a DRO because they get to take MASSIVE ‘commissions’ out of every monthly payment you make under the DRO ..

You can talk to your bankruptcy attorney about the possibility of filing a new bankruptcy case. This will cost you the same amount as it cost you to file the one that was dismissed. You will be starting all over again.