No clue what to do

I have a major problem, I am unemployed and have about 12,000 in debt that I cannot pay back. I receive just enough unemployment to cover my living expenses. I have no college degree, which in Michigan is a death sentence for decent pay, so being able to repay my creditors is next to impossible. I have a car loan which, I have a co-signer, for 5,000. I also have unsecured credit card debt which is around 3,000. I have past due medical bills which are around 3,000. I also have other small debts that I cannot pay back. I am 22 and need a fresh start so I can build a responsible credit history. I have since taken money management classes and have a budget that I follow meticulously.

My living expenses are as follows:
rent- 650/month
food- 250/month
utilities- 150/month (gas/electric/water)
gasoline- 100/month
communication- 35/month (phone)
lawsuit settlement- 40/month

My income is 300/week and most times 1200 in a month which leaves me with 10 dollars to pay my debts. What do I do? Am I too young to file a bankruptcy? There are other issues involving the possibility of getting a checking account which are also making me consider bankruptcy.

I am sorry to hear you are having difficulty.

You are not too young to declare bankruptcy. If you are old enough to incur debt you are old enough to declare bankruptcy.

However, I would consider other options because bankruptcy is a serious step. I would contact the local unemployment agency and ask for public assistance venues. There are job training programs, and other resource available. You are clearly articulate and well read and perhaps could consider college through a hardship program or a grant of some kind. You are young and obviously intelligent. There is no need to limit yourself in that regard at this point.

Bankruptcy isn't really going to help you in the sense that it is going to make a difference in your day to day life----your budget as you have written it, doesn't include any of those other expenses ( such as medical bills, car loan etc). So, even if you do declare bankruptcy, all that will do is deal with the debt you AREN'T paying right now. And even then, it may not dismiss all of that.

I am not sure I understand your statement about a checking account and bankruptcy. The two are not related. You can be bankrupt and have a checking account. Checking accounts are not primarily credit based. If you have not had an account previously and had it shut down, you shouldn't have a problem. If you had an account that went negative and the bank shut it down for NSF, you would have been reported to ChexSystems or some other such agency so if you attempted to open another checking account, a bank, even if it was a different bank, would not allow you to do so.


You can get a free or low cost attorney to discuss your options and see if bankruptcy is right for you. But unfortunately it can and will follow you well into adulthood, when you may be married and have a family even. But only you can make that decision, hopefully with the help of a qualified attorney.

Good luck.

I am currently trying to go through the state aided college tuition assistance programs, but so far to no avail. My original intent with the bank thing was that ChexSystems sent me a report that I requested that stated that the banking institutions are under no obligation to remove a report even if the debt is satisfied. My budget is everything that I get in, and spend to survive. I would like an idea on where to go for the other public assistance programs that could help me. I have tried food stamps, medicaid and other assistance programs and have been denied for making too much for the 2007 tax year. At this point, it is impossible for me to get housing on my own. I had to get someone to co-sign for me to get my apartment. Even then, I have to pay more because I am a "liability". I know for a fact that half the jobs that I have applied to have disqualified me because of my credit report that contains these debts that I can only pay 10 a month until either I can get a degree or get lucky and get a better job. I am not sure though that I can trust a lawyer around here. Half of them are scuzzy to begin with, with more of them having bad reps being sprouted by the minute. Thanks for your time.

I am afraid you are being misinformed.

Public assistance programs such as medicaid and foodstamps are based on the past thirty to sixty days worth of income. I routinely used these programs with the moms-to-be when I was a social worker for an adoption agency.

Also, with chexsystems, the bank can give you documentation when the debt is satisfied. A friend of mine has his name on his elderly mothers bank account. When she passed, the account was negative. And he paid it current and closed the account. But when he tried to open accounts, it showed his name, but showed the debt was paid So you need to follow that up with whatever bank it was--did you have a negative balance? If so, you cannot do anything until it is paid. Chexsystems Can't Stop You From Getting A Bank Account... Not Anymore!

With regard to the assistance programs---get out the yellow pages and look for soup kitchens, food pantrys--even if you dont need food, they can help you with other resources, such as Catholic charities, other outreaches that are perhaps religious based. It is a starting place.


Why are you not able to get student aid? Go online to FAFSA and fill out an application. It is very simple--and its NOT credit based. Virtually anyone can get a federal loan---they don't do a credit check ( unless you defaulted on a previous loan).

Good luck.

I am in a unique position. My parents are absolutely unwilling to help me with the FAFSA. Because I am under the age of 24, I am only able to receive 5500 dollars of federal assistance to a full-time institution because I am considered a dependent adult. Only after I turn 24, I become an independent student and am eligible to receive 9500 in assistance because of post-24 grants. My parents have to be on the loans that would get me into school and they want nothing to do with that because they are in bankruptcy situation themselves. It is one heck of a situation to be in. Darned if I do, darned if I don't. I will have to wait until fall 2010 to get into school at this rate. I am going to check to see if I have been misinformed about Michigan's food assistance programs. I wonder if they do this so that they do not have to pay as much. I tried my local pantry and they are out of food. I am keeping my eyes open in the papers for food trucks and such. My old pastor has gone so far to say that God is putting me through one H*LL of a test. I am just doing everything that I can to survive. Again, thanks for your help and time.

Perhaps something in here will help with the FAFSA: FAFSA - Free Application for Federal Student Aid

What if I am unable to provide my parents’ information, their income information and signature, due to special circumstances?
Under Federal law your family is primarily responsible-to the extent they are able-for paying for your college expenses. To determine how much your family can afford to pay towards your college expenses, we must collect your financial information and if you are a dependent student, we must also collect your parents' financial information.
Under very limited circumstances, an otherwise dependent student may be able to submit the FAFSA without parental information due to special circumstances. Before you proceed to skip the parental section of your FAFSA, consider the following:
Examples of special circumstances where you may be able to submit your FAFSA without providing parental information include:

• Your parents are incarcerated; or
• You have left home due to an abusive family environment; or
• You do not know where your parents are and are unable to contact them (and you have not been adopted).

Not all situations are considered a special circumstance. The following are situations that would not be considered a special circumstance:

• Your parents do not want to provide their information on your FAFSA; or
• Your parents refuse to contribute to your college expenses; or
• Your parents do not claim you as a dependent on their income taxes; or
• You do not live with your parents.

If you believe you have a special circumstance and are unable to provide parental information, you should complete information about you and your finances and skip any questions about your parents. You should sign your FAFSA with your PIN and leave your parent's PIN blank. It is important to note:

1. We will allow you to submit your FAFSA without parental information, however your FAFSA will not be considered complete.
2. Because your FAFSA is not considered complete, we will not calculate your Expected Family Contribution (EFC) which is the index used by colleges to determine how much student aid you are eligible to receive.
3. If you are approaching any deadlines for your state, college, or scholarship aid, you may want to contact your financial aid administrator (FAA) before submitting your FAFSA without parental data.
4. Once you submit your FAFSA without parental data, you must follow up with the FAA at the college you plan to attend, in order to complete your FAFSA and receive an EFC. Also note the following:
   • Under Federal law, only your FAA has the authority to decide whether or not you must provide parental information on your FAFSA.
   • You will have to provide documentation to verify your situation. Gather as much written evidence of your situation as you can. Written evidence may include court or law enforcement documents, letters from a clergy member, school counselor or social worker, and/or any other relevant data that explains your special circumstance.
   • After reviewing your circumstances carefully, your FAA will decide if you must provide parental information or if your circumstances allow you to proceed without providing parental data. Your FAA’s decision is final and can not be appealed to Federal Student Aid.

I read what you have posted and I do not qualify for that as my parent's absolutely refuse to provide their information. Their grief is that they will have their wages garnished and that will force them out of their home. Can you believe that, my parents don't want to help me get out of my situation. I know that it is not just about me, but it is sad that my own parents refuse to at least encourage me to go farther than they have. The light is at the end of tunnel, but that is another 17 months ahead. I appreciate everything that you have provided me, grace. Thanks, to the utmost. God Bless.

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