I just surrendered my car (I owed $24,500 on it and it was only worth about $11,000). I tried everything to lower the payments but no one would refinance the car for a lesser payment ($685 a month), i have about $7k in collections, $11,000 in credit card bills, $3,000 in payday loans and about $12,000 in hospital bills. I make about $47,000 a year as a single mom of a 5 year old. I already paid $500 for a retainer fee for a lawyer but they sent me the filing draft and now im second guessing myself. I dont own really anything except a beat up couch, a single TV, a $4,000 beater car, my $50 desk since I work from home, mine and my daughters beds and our clothes.
When starting the process, I had to do the credit counseling class that is required before filing for. Bankruptcy and the credit counselor that went over my credit report recommended a company called MMI for debt resolution instead of doing Bankruptcy and they came back with a plan for $363 a month for 3 years (I can pay off early if I want to with no penalty) to pay off all credit cards, payday loans, collections, etc. Just not the surrendered car. The company for the surrendered car said once they sell that, I will get a letter with how much I still owe and they will do payments.
I rent and our current apartment only does month to month leases. I always pay about a week or two early before its due but am terrified I wont be able to find another rental if they give us notice if I file bankruptcy… plus the obvious scare of the stereotypes regarding people that file bankruptcy which I know I shouldn’t listen to but its hard..
Should I just file?
submitted by /u/YesterdayLonely7428
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