Is there a way that I can file bankruptcy without losing my car?
admin | Apr 18, 2010 | Comments 8
I recently had an unwilling job change with my company and took a $15,000 a year pay cut. I can’t even afford to eat. I have three credit cards, a computer that’s financed and about $1000 in hospital bills. My car payment is $640 a month. Yah, I know but I could afford it a year and a half ago. Should I file bankruptcy or try to take out a personal loan to pay everything off and make caught up. My car is about to make repossessed unless I voluntarily surreder it. Who knows preeminent?
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Filed Under: Bankruptcy
Give up that car and make a more economical one. You need to cut out the things you don’t need in your life, like cellphone, buying shoes, going out to the bar, strippers, etc. Your lifestyle was tailored to your ancient income, now you need to readjust it, or you will lose everything. Why would you want to keep a car that is that much when you can’t eat? After you file bankruptcy if you reaffirm on the loan you’d still owe a ton on it, and it sounds like your largest problem…. It won’t kill you to make a cheaper one.
Voluntarily surrender it! Avoid bankruptcy and buy a less expensive vehicle! Less bling = higher financial IQ!
Be blessed,
Make the Book – Total Money Makeover – by Dave Ramsey
The only way you can stop the car from going back is to make the payments. Just file bankruptcy on the cards. and keep paying on the car
Initially off, not remember the hospital bills. They should be last on the list of things to pay. Really, if you send in only a few bucks a month on the hospital bills, they will typically not harrass you if they see you are at smallest amount making an attempt to pay. Do you own a home? If so, take out a loan against it and merge your debt. If this is not an option, my suggestion would be to trade your $640 per month car annotation in on a much cheaper vehicle such as a Suzuki or a touch. You can finance the value loss of the more expensive car into the less expensive one and still emancipated up about $300 per month versus what your paying. I would definitly take out a loan to pay off everything if that is an option.
you need to talk to a bankruptcy attorney or paralegal. the laws have changed recently, but when i filed (20-some years ago) it wiped out all my debts… credit cards, car, mortgage… and i got to keep the car and household! some things are protected items under bankruptcy: your domicile, one car per spouse, the tools of your trade… the timeshare in Maui, even if, is not! like i say, the laws have changed under shrub, so consult an attorney or credit counselor initially! it’s worth the money!
oh, and you can’t pick-and-choose which debts you file on. bankruptcy is an all-or-nothing deal; if you try that you’ll basically void the administer!
keep in mind, bankruptcy takes a LONG time to clear off your record! i would recommend getting a second job and pay all that stuff off! yeah, and don’t SURRENDER the car, that too is a lofty blot on your credit record, trade down to a touch you can afford.
You didn’s say how much you make and how much you owe. It is hard, if not impossible to advise you. I am assuming that your income is less than your expense. It looks like you can’t afford your car. You will have a lofty deficiency judgment if your car is repossessed. In bankruptcy, you do have the possibility of saving your car by paying the creditor what it is worth. There is a company called 722 which is an affiliate of US Bank. They facilitate such redemptions and often it is a excellent option.
Discuss this with your bankruptcy attorney. Find a excellent on at http://www.abcworld.org
No do not file!!! Talk to a credit counselor and reckon about getting another job. Not just a second one, a better one. You file and it stays with you for about 10 years. Not a excellent thought. If the car is worth anything, they may take it. Be smart and tlk to credit counselors initially. Please don’t panic..one door closes and another one opens.
Excellent Luck!