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I am in a load of debt and want to know more about bankruptcy. My mom died when I was 17 and I have been raising my younger brother ever since. It has been very hard, for two years he was secretely living in my dorm room until I was able to break my housing contract and get an apartment. That is where the debt comes in. My grandmother came to visit and we had no furniture, literally one futon and some covers. She went crazy and decided the I HAD to buy furniture (she is a very forceful person) SO we bought the furniture, she cosigned and said it would be a good way for me to build some credit. It was a 6 mt deferred payment plan. She told me that she was going to pay for half and I would pay for the other half. At that time she was also receiving an SSI check for my brother (because he was under 18 and in H.s) she would send off part of it and helped me pay half of the rent, but this help only lasted 6 months. To say the least my family is all screwed up! Anyway, she stopped sending money and I had to start paying for the rent and utilities on my own which ended up being ALOT of money. I dont have to mention that she never helped pay on the furniture (which I still owe on)

So after talking to a “friend” he was telling me that he’s in realestate and that he could help me get on my feet while improving my credit score, so when I graduate from college I would qualify for things! So I was to purchase a house and receive 6000 at closing 2000 of which would be invested in order to pay off the taxes for the year. I wasn’t planning on living in the house for two more years, until I graduated from college. I used the 4000 to pay my rent in my apt for the rest of the year and that made my bills a lot more manageable for the time being, that was until I found out that the “management company” was not collecting the rent. Although I had been receiving NOTICES and receipts for payment! From what I understand the house went into foreclosure, I never even had a set of keys! I had known this guy since i was a little girl and I can’t believe he scammed me. He’s a close family friend!

After reading up on the situation, Iearned that I was in the wrong for saying that I was going to live in the house when I wasn’t planning to. Now I have a foreclosure and debt because of the furniture . I was just trying to make life normal for my little brother and I, but I ended up ruining mine! I don’t know what to do, where to go, who to turn to! I dont have the financial stability to hire a lawyer and at this point I am being sued by HSBC for the furniture, but I have no way to pay them, nothing to pay them. I can’t even settle because I don’t have the money. I live in Michigan and finding a job is virtually impossible, literally I have applied everywhere from department stores to office buildings and no one wants me because of my lack of FULL TIME job experience (I have been a student and worked 35 hr/wk for the last 4 years) . Please help me!
If I don’t file for bankruptcy, how long will this foreclosure loom over me and what are my responsibilities concerning the foreclosure? How will the taxes pay out? I don’t even know who to contact on this

HSBC has already served a summons, how can I handle it from here. I regret the fact that I let myself get screwed and in so deep in this matter 🙁 Ive been fending for myself since 17 (right about the time when I was supposed to learn how to properly transition into adulthood) I dont want to make another stupid mistake, I am already in over my head!!!

As for bankruptcy as an option, what does this do to the foreclosure? I think that with all of this stuff added up I’m over 100,000 in debt, not to include the student loans that I have to start paying back ( I know I can’t get rid of those).

I’m only 22, and I dont want to ruin the rest of my life! The last five years have been horrid enough.

6 Thoughts on Please don’t shoot me down but I need some financial advice?
  1. Reply
    James F
    September 1, 2011 at 4:41 am

    You need to file for bankruptcy right away. Find a lawyer. It will probably cost around $ 300. Once you have paid the lawyer, you tell all your debtors that you have retained a lawyer and are filing chapter 7 bankruptcy. They MUST stop calling you and deal only with the lawyer.

    If you are short of cash, mow lawns, wash cars, etc. What does your resume look like? Make it look better. If people won’t hire you, tell them “Look, I will volunteer for a week – no pay – 8 hours a day. Try me out. If you don’t like me, let me go. Otherwise, hire me. Deal?” Be ready to work at any interview you go to – dressed sharp, ready to hit the floor.

    Take part time work if you have to.

    Heck, you could probably pan handle in front of stores for a while to make a few bucks. I know it sounds stupid, but make a cardboard sign and put your story on there – lost house, lost job, need $ 300 for bankruptcy lawyer. Hire me!” and hand out your resume at some street corner. People get hired like that all the time, just for getting out and DOING something!

    And don’t worry, this will all go away. It’s a TEST to see if you’re ready for life. I’ve been through it twice, and now things are fine (I’m 40 now, filed chap 7 at 23.)

    Good luck!

  2. Reply
    September 1, 2011 at 5:23 am

    I will 2nd what James said, and follow up with get out of MI. It is a dead zone with to many people looking for jobs that just are not there.

    Get out, I don’t care if your family is there or what reason you are there, get out of that state.

    If all else fails put on something nice and stand on a street corner with a sign, saying you need money, and you’re are willing to work. Yes you will run into some jurks.

    I am much more willing to give money to a nice dress person then the normal bum beggars I see.

  3. Reply
    v b
    September 1, 2011 at 5:52 am

    Yes, see a bankruptcy lawyer.

    Yes, make a DETAILED list of EVERYTHING you owe.

    There are so many things wrong here, the lawyer needs to know everything. Going through bankruptcy and missing a debt means it would still be out there.

    “He was secretly living in my dorm room”
    “she was also receiving an SSI check for my brother…she would send off part of it and helped me pay half of the rent”

    So, grandma was his fiduciary and lied and said he was living with her? The lawyer may need to demand a financial accounting from grandma. If your brother was living with you and you were paying all his expenses, where’s the rest of THAT money?

    “So I was to purchase a house and receive $ 6000.”
    Again, the lawyer needs to look at this.

    There is no way you were financially eligible to buy a house. The paperwork for the mortgage would have asked for your income. Clearly it said you made $ $ $ when you weren’t making that much.

    The degree of fraud is impossible to guess at. You may have a simple “liar loan” or “ninja loan” situation–meaning that you own the house and if you had been able to make the mortgage payments wouldn’t be losing the house to foreclosure. Worse, you could have a strawman loan–meaning the house was originally worth, say, $ 100,000, but a scammer convinced the bank to loan you $ 200,000 and he walked off with the other $ 100,000 (less the $ 6000 he gave you).

    As rental property, you would also have had additional headaches at tax time and in insuring the property.

    Now that the property is being foreclosed, you may even have taxable income from the foreclosure.

  4. Reply
    September 1, 2011 at 6:26 am

    Have you tried fast food? they are most always looking, I know they don’t pay much but they pay and you could call HSBC and see if you can work something out. Creditors are ALWAYS nicer when you call them and make an attempt. I feel so bad for you, wish I could just solve it. I know this is stressful but know that it is not then end all be all, this too shall pass.
    If it were me and I absolutely could not get work elsewhere, fast food and a paper route, try also call centers like maybe a credit union or bank. Put yourself on a job site like… a lot of places like entry level people because they can pay them less but it will get your foot in the door. Maybe sell Avon or Mary Kay.

  5. Reply
    September 1, 2011 at 6:45 am

    Forget all the links trying to sell you some other get-rich-quick scheme. Instead, get back to basics, get organized, get professional help, and strategize how to get a job.

    Getting back to basics means if some job or investment is even a little complex, avoid it like the plague of bad credit and despair. Also, spend on basics and avoid the luxuries that you may have earned, but are still unable to afford as they will only compound the problem.

    Organize your finances, first by making a budget of what you have to spend, other than loans, but including food, rent, utilities, and transportation. Then write down each loan separately, including how much it was in the beginning, how much you owe now, and what, if any collateral you still have against it. .

    Find a bankruptcy lawyer that will provide a free consultation and then give them your organized budget and debt list, because it sounds like you fully qualify for major relief. Government taxes cannot be erased because that would be too easy for people to lower their withholding, spend the money, then tell the government to forgive the loan because it’s all spent. School loans are tougher, but all the bills you listed are the kind that can be easily trimmed if not eliminated completely. So most of your debt will be erased, leaving you with bad credit (which you unfortunately already have, so no big loss there) and probably a small delayed payment plan.

    Last of all, if you cannot find a job in Michigan, move. You are in the epicenter of the major national unemployment crisis. If you can find a job, you should be able to find a cheap place to live. If not, go away a few states and you can probably easily find a full time job paying just above minimum wage. I live in TX and the housing and job markets did not take the plunge they did everywhere else. Texas Tea always sells, NASA always has something in the budget, and we have lots of other companies doing well or at least surviving. One company just decided to open a new factory and had a job fair to fill 1500 or so positions. Two people just visited our church who were hired in an Ohio job fair because they cannot find enough teachers in Texas. There are help wanted signs everywhere. It is much harder, but still possible to find jobs that will use a college education. While waitressing, you could meet lots of people, including more people who want to screw you, literally, and figuratively, and some who will offer you jobs. So filter out those trying complex or questionable offers and set a goal of getting any job now, with a better job within two years.

    If you need financial assistance, look to churches and social programs until you can get back on your feet. If you need more guidance, come back and ask and feel free to add me as an Answer Contact. Good luck.

  6. Reply
    September 1, 2011 at 6:45 am

    I agree with absolutely EVERYTHING that vb said except the part about a bankruptcy lawyer.

    Basically that is just going to make your credit worse, not better. Other than a foreclosure the only thing hurting you is a dunning from HSBC? They are easy to get rid of once the debt ages out a bit and hits a collection agency. Just hit them with dispute letters (that will go unanswered) until they try to sue (IF they try to sue) and then respond to the summons with a formal statement that you have attempted numerous times to have the debt validated to no avail.

    Find an attorney to take your case, but not a bankruptcy attorney. You need to file a lawsuit against the real estate agent and the mortgage company that allowed you to take out that mortgage. I guarantee you there is fraud in here somewhere. Make appointments for free consultations with attorneys in your area. You should be able to find one that will take your case on a contingency and you will only have to pay if you win.

    A court order once you win your case will remove the foreclosure. Don’t worry about HSBC for now. One negative isn’t going to kill you, and provided you cannot have it removed it will be gone on its own in seven years.

    I would be happy to help explain this in depth if this is the route you wish to take. Just send me a message through my profile and I will get back to you as soon as I can.

    My heart goes out to you. I KNOW that this mess can be cleaned up. I just know it.

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