Debt/Bankruptcy?

I'm a college student in my junior year. I live in an area where most businesses are student-friendly and flexible with hours, but I cannot get a job that pays a high enough amount to cover cost of living.My parents pay tuition and books, but I pay everything else-phone, car insurance, untilities, rent, groceries, gas, etc. My problem is that I'm in debt-about $2000-but I can't keep up with any payments. Currently, I make enough to make rent and utilities and I basically don't eat. I don't qualify for foodstamps, but my credit has become so bad that I don't qualify for any credit cards. My parents will not cosign a student loan, so I don't qualify for one & they make enough money that I don't qualify for FAFSA.
I'm considering declaring bankruptcy but I don't really understand what that means. I've looked around a little online& found debt consolidation sites & even someone that says you can convince the credit companies/agencies to take $700 for a $1000 debt. Opionions/help plz

The buses don't run enough for me to not use my car and I've already cut my phone usage back to nothing but emergencies. Most of my debt is gas (to get around and to go home for holidays) and groceries. I've stopped going out a long time ago because my bills were piling up but I can't seem to catch a break or get any help.My parents said I got myself in this mess and I need to figure it out myself. The thing is, I qualify for the state to pay for my classes, so if they had just said they'd pay even part of my rent I wouldn't have had to get credit cards just to feed myself!
Sorry if that sounds rant-y but that's how i feel. I understand that they just wanted me to learn financial responsibility, but I haven't had any kind of allowance since i was 10 and have been buying toiletries, shampoo, clothing, and lunch/food for school, and school supplies for myself since I was 13. I know it sounds ungrateful, but i just resent it when kids say "its okay my dad/mom pays the bill on this:

Reguardless of how much money your parents make you will still be eligible for a student loan. If all else fails, spend less. You can drink water instead of soda. You really don't need that cell phone! Maybe you could do without a car, ride the bus, walk, or ride a bike to school and work.

Taking $700 for a $1000 debt is called a settlement. It will still show on your credit report as a negative mark but you will have a $0 balance, which is better than having a balance. $2000 debt is very low, too low to declare bankruptcy in my opinion. Try making payment arrangements with the creditors before declaring bankruptcy. Most usually are agreeable to getting something as opposed to nothing.

Good luck.

Filing for bankruptcy with so little debt isn't good. You may want to try a debt consolidation company like CCCS or Genus. They will contact your creditors for you in order to lower your payments and interest rate.

What you are referring to about companies settling is not a good choice, becuase even though the company has agreed to settle on a lesser amount, that remaining portion still shows on your credit report, and that will make it look even worse, even with it showing other creditors that you settled.

Have you tried even seeing if you qualify for a student loan, without a cosigner? FAFSA doesn't qualify you a loan, it only determines what you get from in Pell Grant money, but you need to complete it to request a student loan.

DON'T DO IT, Yes your credit is already ruined but you don't need to file bankruptcy over a $2000 debt.

When you file bankruptcy you are telling the courts you are over extended and unable to pay your bills at this time. It takes up to 10 years to recover from a bankruptcy.

Who do you owe $2000.00 too? Credit card company? Send them $5.00 per month and tell them you are doing the best that you can. Do not give them your work number. Give them your cell number as your work number because they will harass to and try and get you to send them your last penny.

When I filed bankruptcy I was $52,000.00 in debt mostly credit cards.

Concentrate on school. Reapply for food stamps. They should only be going off your income only.

Your parents are being unreasonable on this. Young adults get themselves into trouble all the time and some need baling out once in a while.

Student Loan - Apply for a student loan thru The Department of Education. What are your counselors doing? They should be helping with financial aid.

I added a good source of information in the link below.

You provided a detailed description of your situation, however your question is not very clear.

Anway, yes you can talk to a collection agency and they will take $700 for a $1000 debt. Unfortunately, this will cause two things to happen:

1. If the debt is in collections, there ABSOLUTELY no point in paying it off unless you can get them to delete it off your credit report (you have to get this in writing.) Anything less than this will not help your situation out at all. If you pay them $700, it will change the status of this debt from "Written Off" to "Paid as agreed" or "Paid in full." Unfortunately, paid as agreed and paid in full has just as much of a negative impact on your report as written off, or not paying at all.

2. If you pay the debt collector $700, they will sell the remainder of the debt to another collector and you will get hounded again.

My advice:
1. Declare bankruptcy only as a last resort. It will cost you like 500-1000, so it would be best to pay off bills.
2. Cut up credit cards
3. Get two jobs and go to school part time till you can afford to live on your own/get roommates.
4. $2000 is a very small amount to screw your credit up over for 7 years.
5. Sell your car. Ride a bike, buy a beater instead. Live on campus if you have to.

Basically, you will have to choose between college and your current lifestyle/comforts.

hi. okay i was in debt too a few years ago, i wish my problem then was $2,000. I was about $20,000 in debt. I was a shopping addict. I still am. fortunatly i have my own business and my parents help me out. im 23 years old.

take a look at your phone bill. check out your monthly plan. check out other phone carriers. maybe you should lower your plan to reduce the cost of that bill. talk to one of the repersenitives, they will help you out.

omg!!! never EVER DECLARE BANKRUPTCY!!! that will ruin you more than the debt your in!

Dont get anymore loans. they will put you in more debt.

let me think, move back home. do your parents live nearby?
that would be the best solution. but if they dont, i am going to help you a little more.

have you thought about getting another job?

have a garage sale, ask your parents for the $2,000 and tell them you will work out some kind of payment plan with them every month. tell them your there son for god sake and that you really need there help. and tell them that you are going to pay them back like every penny.

Look for a roomate. Im sure you have a best friend or something that can roomate with you and can cut the cost of utilities and rent and etc alone.

Do not File for bankruptcy please! and do not get credit cards! My debt was because of credit cards.

and please no food stamps. you can do this. just have a heart to heart with your parents or post flyers around campus stating that you are looking for a roomate and list how much it would cost them monthly to live there.

if you need anything else email me.

but please dont hurt yourself even more by filing for bankruptcy. it destroys your name and it takes years and years and years to build your name back up again.

kit....renee

don't claim bankruptcy on 2K.

read thru creditinfocenter.com
buddhibbs.com

Without going into a long story about it....do not file bankruptcy for a single $2000 debt. The cost of filing alone can be several hundred dollars.

You never want to consider bankruptcy unless you have about $20k in debts, and several different creditors.

The worst that can happen to you at this point is one judgment going on your record. That will hurt, but not nearly as bad as a bankruptcy. So from a credit score point of view don't file BK.

Financially the worst that will happen is they get a judgment and then they need to figure out how to collect. From your question you don't sound like you make a lot of money, and they may not be able to take much from you. They could put a lien on your car.

But from my experience helping people, you are on the edge of whether they will even file a lawsuit. In most cases, debts under $2000 are left alone, unless they have a collection agency right in your area. That will make it easier then hiring an out-of-state attorney to sue you.

So my recommendation is if you can't even afford the $60 minimum payments, then ignore them and gamble on a lawsuit. A single collection is only going to mess up your credit for a few years.

Bankruptcy is not going to help you with a debt load of only $2000. It would be a waste because you wouldn't be able to file again for 8 years and if you are in the hole and get more in the hole, you don' t want to file bankruptcy before you have good reason to. Is it possible for you to get two jobs? Are your parents contributing anything at all?

This is a link to a not for profit agency that offers credit and bankruptcy counseling. I was recommended them through Consumer Credit Counseling Service, which is the only credit service that Suze Orman recommends on her website. They also offer consolidation services. I am currently enrolled in their consolidation service. They lowered my interest rates on my credit cards and put me on a debt management plan.

Suze Orman Debt tips (including her endorsement of CCS): http://www.suzeorman.com/igsbase/igstemp...

Money Management: http://www.moneymanagement.org/