I need info in a hurry... please.
Date: Mon, 04/02/2007 - 01:25
Hi - I owe approx. $45,000, about 9K of which are student loans. Honest to god, not my fault, up until this point I had maintained near perfect credit. A bad relationship did me in. I have retained an attorney and am in the process of filing for bankruptcy, although the filing has not yet been done. The law firm has $1,000 dollars of my money. I am flat out unable to work and am receiving disability pay from military service in the amount of about $800 (with the possibility of it rising to $2,400 per month, though that will take years.) It will never go down and cannot be garnished by any entity according to the lawyers. There is no way I can see to live in the U.S. on the current amount with any type of repayment or consolidation stuff in effect. So, I have been planning to go to Latin America where $800 per month should allow me to live modestly. Thing's are defaulting now, and my credit is doing a serious nosedive.
Q1. Is bankruptcy the right move for me? I have no assets to protect. Only CC debt, student loans, a personal loan, and a new truck that I'm way, way behind on. Should I file, the court will order me to surrender the truck. This is scary because it's the perfect vehicle for driving there and I can't scrape up the airfare I need and eat at he same time. Driving there would be ideal. I'd like to take off right now but need to know the repercussions of doing this. I'm not a bad guy out to screw people, I never have been. I'm just in a bad spot and very near the end of my rope. The next stop for me is a homeless shelter. I plan to contact the maker of my vehicle when I get to the Southern border of Mexico (can't go any farther without the title) and let them know where it is. I know for a fact that there are dealerships there. Time is pressing as I expect to just see the truck gone very soon (repo) if I don't get on with things. If I file, I'm guaranteed to have to stay in the states for another 45 days minimum. So... should I file? Would you?
Q2. Are there legal repercussions (jail specifically) if I go ahead with this plan (just take the truck south, and not file bankruptcy?) Will taking off now mean I can never return to the U.S.?
Q3. If there are no serious legal repercussions (the truck WILL be returned to the maker,) how long will my credit in the U.S. stay thrashed? Ballpark?
Thank you for reading this long-winded tale and please by all means shoot holes all through my plan. I need the info. If you're response begins with something about "moral responsibility" or "gradual repayment" I ask you to reread the part about me NOT being able to work. My disability prevents it. If there's someone who can just give me the facts or a better alternative I haven't thought of, then I will be grateful beyond what I can express. Thank you, email address removed as per forum rules - Mike
Q1. Is bankruptcy the right move for me? I have no assets to protect. Only CC debt, student loans, a personal loan, and a new truck that I'm way, way behind on. Should I file, the court will order me to surrender the truck. This is scary because it's the perfect vehicle for driving there and I can't scrape up the airfare I need and eat at he same time. Driving there would be ideal. I'd like to take off right now but need to know the repercussions of doing this. I'm not a bad guy out to screw people, I never have been. I'm just in a bad spot and very near the end of my rope. The next stop for me is a homeless shelter. I plan to contact the maker of my vehicle when I get to the Southern border of Mexico (can't go any farther without the title) and let them know where it is. I know for a fact that there are dealerships there. Time is pressing as I expect to just see the truck gone very soon (repo) if I don't get on with things. If I file, I'm guaranteed to have to stay in the states for another 45 days minimum. So... should I file? Would you?
Q2. Are there legal repercussions (jail specifically) if I go ahead with this plan (just take the truck south, and not file bankruptcy?) Will taking off now mean I can never return to the U.S.?
Q3. If there are no serious legal repercussions (the truck WILL be returned to the maker,) how long will my credit in the U.S. stay thrashed? Ballpark?
Thank you for reading this long-winded tale and please by all means shoot holes all through my plan. I need the info. If you're response begins with something about "moral responsibility" or "gradual repayment" I ask you to reread the part about me NOT being able to work. My disability prevents it. If there's someone who can just give me the facts or a better alternative I haven't thought of, then I will be grateful beyond what I can express. Thank you, email address removed as per forum rules - Mike
BK...stays on your credit report for ten years. BK will not d
BK...stays on your credit report for ten years.
BK will not discharge your student loans, unless you obtain a special hardship meeting, and are able to prove that you will not have any meaningful earning capacity for the next 25 years (I don't think anyone here can assess that for you, talk to your BK atty).
Regarding student loans...I don't know if the military has it's own disability payment, but if you are receiving SSDI, that can be garnished to repay a defaulted student loan, and a lawsuit is not needed to do so.
Have you looked into benefits? Food stamps, HUD, general relief, etc...
Quote:
Q2. Are there legal repercussions (jail specifically) if I go ahead with this plan (just take the truck south, and not file bankruptcy?) Will taking off now mean I can never return to the U.S.? |
Assuming you did this...anything can happen between the start of your road trip, and your destination. I suppose you could be charged with fraud/theft, esp if there is a stipulation in your contract about not removing the vehicle from the state/country. I really don't think this is a good idea.
Quote:
Q3. If there are no serious legal repercussions (the truck WILL be returned to the maker,) how long will my credit in the U.S. stay thrashed? Ballpark? |
If you don't file BK, then negative entries would stay on your CR for 7 years from the date of charge-off. Also, since you left the country, the SOL on your debts may toll (clock stops ticking), and you could be sued for payment once you return. I suppose you could also be sued, even if you currently are not living in the U.S., and subsequently have 1 or more default judgements placed against you (these are on your CR for at least 10 years from date of judgement).
Morningstar has a good advice on the SOL part. Maybe you should
Morningstar has a good advice on the SOL part. Maybe you should look into this factor before deciding to leave the country. More replies are posted here.
http://www.debtconsolidationcare.com/bankruptcy-discussion/about25208.html
