Got out of prison 2months ago, facing civil suits and different forms of debt, thinking about filing bankruptcy? Please help!
Okay, there’s kind of a lot going on and I’m hoping someone out there will see this and be able to offer some kind of suggestions.
So, to start, I (27/US) went to prison for 13 months and got out last December (Non-violent drug-related crime, if that helps with context). The impetus for my incarceration was a car crash in which I damaged four different vehicles; I had no insurance at the time. I also had three different credit cards, all of which were maxed out, and a minor amount of student loan debt.
Anyways fast forward to now, I have been out for about two months now, living with my family paying them $100 a week and waiting tables making around $500/week. I’ve saved up about $3K already and I am going to be using that to buy my own vehicle after I am able to get my occupational license and drive legally again (gotta get the breathlyzer put in my car too which costs like $300 for the install + $80/month, and I’m expecting my car insurance to be pretty astronomical)
So my next step is looking at all this debt and seeing what I can do with it. I’m not sure if I should just file bankruptcy and I’m not sure what bankruptcy all covers and doesn’t cover. I owe:
~$6.5k in criminal restitution (from the car accident)
~$10k on my car (which was totalled in said accident)
getting sued by Capital One for $3k (I’m going to answer the summons in writing like it says to and try and explain the situation)
owe Wells Fargo around $3k
got a letter about possible litigation from an insurance company for about $4k, one of the insurers of one of the vehicles
student loan debt for one semester of college… can’t remember my login info so I’m working on getting an exact figure but the initial loan was only 1.8k
Anyways I guess what I’m asking is does anyone have any suggestions at all as to what my best path forward should be? If I declare bankruptcy, how does that affect me and what will or will it not do as regards the criminal restitution, the student loan debt, and the civil suits? If I don’t declare banktruptcy, what should my order of operations be? I’m assuming the civil suits are probably the most important? The State in which I live has given me until January of 2023 to pay the criminal restitution.
TL;DR Years of drug use has totally messed up my financial situation, sober now and out of prison and trying to see how I can tackle all this and whether or not I should just declare bankruptcy