QUESTION
What is the effect of my previous lifesytle if I file bankruptcy?
Asked on Jan 12th, 2014 on Bankruptcy - Florida
More details to this question:
Between my junior and senior years of college, I managed to accumulate nearly $20,000 in credit card debt. I've no idea how I managed to get that kind of credit, but I did. I spent the money on things I didn't really need, and I honestly don't know where most of the money went. I was an immature college student, but I didn't live like a college student. I managed to make my payments because I received a large refund from school every semester because I had a scholarship. I also have $15,000 in student loans, which I know cannot be discharged. Now, I'm about to graduate and I've no idea how I'm going to manage this debt. I want to go to graduate school, and I'm only working 18 hours a week at a part time job. My interest rates are absolutely outrageous. My mom thinks I should file bankruptcy and wipe the slate clean, and honestly that sounds good, because I don't think I need any access to credit for a couple years. I won't be purchasing a home or car anytime soon. I'm worried, though, because of my outrageous spending habits last year. I'm afraid I'll be denied. Any comments/suggestions?
8 ANSWERS
Don't fret about it. I would suggest a face-to-face meeting so we can discuss your specific situation. I have successfully filed THOUSANDS of bankruptcies, so I know I can help you. I like to tell clients, "The road to Hell is a two-way street". Again, don't lose any sleep. With the right attorney, you will be just fine!
Answered on Jan 16th, 2014 at 7:44 PM
Generally speaking, how you got into debt is not something the court or the trustee cares to know, unless you paid debts that really should be someone else's responsibility. Your mom's advice makes sense.
Answered on Jan 15th, 2014 at 4:23 PM
The bankruptcy court & staff has no interest in judging your past because everyone has an explanation for how they got into debt. They don't have time to judge your lifestyle either because it is only their job to determine whether you are complying with the requirements of bankruptcy law.
Answered on Jan 15th, 2014 at 4:22 PM
Credit card debt in the $20,000+ range is pretty run of the mill in BK court. Unless there was clear intent that you never intended to pay the debt when you incurred it, there is no fraud involved. Credit card companies expect a portion of their customers to default and rarely challenge in BK.
Answered on Jan 15th, 2014 at 4:22 PM
Bankruptcy Attorney serving Walnut Creek, CA
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Alan E. Ramos Law Offices
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Unless you lied on a credit application or otherwise took an action that could be considered fraudulent, you should have no problem discharging your credit card debt. It is wise that you recognize that you spending habits were irresponsible and that is the cause of your current situation. That bodes well for you in your future and strongly suggests that you won't have this problem again in your lifetime. A bankruptcy could truly give you a fresh start.
Answered on Jan 15th, 2014 at 4:22 PM
2 Awards
Your past irresponsibility with credit is irrelevant when filing bankruptcy. What matters is your current income, current living expenses, and your current credit habits.
Answered on Jan 15th, 2014 at 4:21 PM
Bankruptcy Attorney serving Hampton, VA
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Haven Law Group, P.C.
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Bankruptcy is a chance for a fresh start. Not only will your debts be discharged, you will be able to rebuild your credit. For example, my office enrolls all clients in a 720 program that rebuilds credit in a very short period of time. Once your credit is rebuilt and you are debt free, that opens a lot of doors for you.
Answered on Jan 15th, 2014 at 4:19 PM
Advocacy Attorney serving Boca Raton, FL
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Steven H. Meyer, P.A.
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I'm sorry to hear about your situation. It sounds as if you might be a good candidate to file bankruptcy. You really should consult right away with an attorney in your area. Make sure to find an attorney who has experience in handling bankruptcy cases. Most lawyers do not. Our office has handled many bankruptcy cases. I am not sure where you are located, bu if you live in Florida, we would be happy to speak with you about the situation.
Answered on Jan 15th, 2014 at 3:06 AM