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Please don’t shoot me down but I need some financial advice?
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!
2 days ago – 6 days left to answer.
Additional Details
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.

Your questions are too complex and with too much at stake for Yahoo Answers. The definition of insolvency or bankrupt, is that you owe more than you are worth. Many people will fall into this if they are upside down on their house note and they still owe a lot on their cars. If you are renting and owe $100K, you are by definition, insolvent and bankrupt. You need to speak to a bankruptcy attorney who can tell you the details of exactly what to expect after bankruptcy. Until then, my unprofessional opinion is that the HSBC collection process will be halted, your school loans will remain, the foreclosure and other debts will be eliminated, you will owe no tax on the write-offs, and your credit history will be mud. School loans are generally kept intact with long payment plans. Credit card and other consumer debt is usually wiped away. Debt writeoffs are considered taxable income, unless you go through a bankruptcy or are otherwise declared insolvent. If your school loans exceed the value of your assets, you will not have to pay any taxes on the writeoffs, but will have to pay all income taxes you still owe from previous years. The foreclosure and HSBC collections will ruin your credit, so clearing the debt with a bankruptcy will not hurt you any more, but will instead take the place of the mountain of other defaults it can prevent, then it will fall off in 10 years and by that time, you should have greatly improved your situation and had years of manageable expenses that will give you good credit. While that seems like a long time, your second chance can allow you to accumulate some good credit history that will outweigh the bankruptcy because older events are shown, but count less the older they are. Also, you show no signs of being able to pay off the $100K plus student loans in 10 years. Keep in mind, that some creditors can file the petition to force you into bankruptcy, but that is unlikely in your case because companies like HSBC would probably get less than what it cost them to file, if they get anything.

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