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Drakeysgirl · Apr 15, 2011, 10:44 PM

I'm kind of at a loss of what I should be doing... I live in Washington state.
I had very good credit until I lost my job in the end of 2007, right after I got a vehicle loan and a credit card with a $3,000 limit. My boyfriend also lost his job right around the same time. It took me about 3 months to find a new job, and him about 4, but in the course of those 3-4 months we ran up the cc to its limit and the truck was repo'd. I came to an agreement with the cc company to make monthly payments until I unexpectedly got pregnant and had to quit my job...
I had a few other debts that I have paid on as agreed/paid off, but I have not paid on either the balance of the truck, and the cc. I have never answered the calls from the collectors, never replied to the few collection letters I've gotten. The total between the two is approximately $8,000. I believe that the sol has run out on the truck loan, it was repo'd in March 2008. I paid on the cc till April 2009 I believe.
I haven't heard from a collection agency for several months, it may be as long as a year, but today I got a call from Asset Acceptance. I'm concerned that they may attempt to take me to court (I am not sure which debt they are calling on, as there are two). I have no job at this time, I am a full time college student with another year till I graduate. Now I understand that despite the SOL (whether it has run out or not) I still owe this money.
Would it be better for me to scrape together $600 and file for bankruptcy, or wait till I graduate and find a job and start paying off these debts? I know that $8,000 isn't much for most people, but it might as well be a million for a young adult in school, with a toddler at home!

cdad · Apr 16, 2011, 05:19 AM

The SOL on most debt is over 10 years. And that's just the collection point. They can renew the debt again and again for a lifetime.

How is it that you can choose to quit working and then go to school? Was the truck a voluntary repo or did they come and take it ?

Drakeysgirl · Apr 16, 2011, 10:04 AM

I apologize, I was wrong about the SOL being 3 years, its actually 6... http://apps.leg.wa.gov/rcw/default.aspx?cite=4.16.040
I had a job up until October of 2010, but it became too difficult to find childcare after my mom started working a different job. In order to pay someone to watch him would have been as much as or more than I was making at my fast food job. We are living with my boyfriend (the child's father). I receive school grants which cover tuition, books, and most of the gas and parking costs. At this point I can't afford NOT to go to school. I will never make a decent living wage around here without some type of education, and I don't want to sit around leeching off welfare my whole life.
With the truck, we had told them we couldn't afford the payments and wanted to give it back but they didn't make any arrangements with us to give it up, they showed up in the middle of the night and took it, we found out the next morning. I was pretty naïve about the whole process then, in hindsight I realize I should have been more proactive about it.

cdad · Apr 16, 2011, 12:35 PM

Here is your 10 year rule.

RCW 4.16.020: Actions to be commenced within ten years ? Exception.

Drakeysgirl · Apr 16, 2011, 01:02 PM

Thanks, I'm guessing then the 6 would be for the cc debt then? But that is neither here nor there. I understand I'm on the hook for it either way. Unless my boyfriend's income significantly increases within the next year though, we definitely cannot afford to even make small payments. My question is, should I file for bankruptcy, or wait at least a year until I can pay off these debts? And if its paying them off, should I try to get the junk debt collectors to settle for less?

cdad · Apr 16, 2011, 02:19 PM

Really, for this your going to need professional help. Talk to a bankruptcy lawyer in your area and see what they have to say. Its really a teeter-totter situation right now. Lending institutions can settle for less and that goes on your record too even through your doing your best. Is the debt enough? That's really for you to determine. Just remember that you can still be obligated to the debt in bankruptcy. Its not always a clean slate approach.

Drakeysgirl · Apr 16, 2011, 02:27 PM

Thank you. I did talk to a bankruptcy lawyer about a year ago and she suggested I file, but I put it off because I was getting ready to rent a place and was afraid it would make it more difficult to find a willing landlord. Now its much the same, getting ready to move again and I'm worried that a bankruptcy would make it difficult. I guess I was considering the fact that I am one year closer to being able to potentially be able to pay these debts off, and am not sure which would be less damaging to my credit at this point.

cdad · Apr 16, 2011, 02:34 PM

You could always try something like this and see what they have to say from their end of things.

Consumer Credit Counseling and Debt Management Services | Advantage CCS

debtprophet · May 9, 2011, 03:18 AM

People under such circumstances need to know that bankruptcy is not always the best option to end your miseries. It will be there in your report for a long time. Alternatively, you may go for a free counseling session with a professional debt relief service. They might show you through a number of debt relief options, but you'll have the best option only when you can explain your current financial strength and obligations to your counselor.