New/Question on chapter 13/Car/filing

[helpmestartover]

What a wonderful site I've stumbled upon during my google search for info on my situation.
My day off today will be spent reading all these posts!
Here is my dilemna, my car broke down, and to get it fixed it would have cost 2000.00 dollars money i did not have up front, and nothing in credit to help. I decided I should just get anotehr car (I purchased a used car for 14,000 dollars on a Capital One Auto Loan at 14 percent interest). My other car was a late 80s model with 200,000 miles on it.
I am not behind yet on my cc's or any other bills. I am doing the pay one to pay another scenerio with my unsecured and they are maxed out. I have made my 2nd payment on the car and I am drowning beyond words. I can not manage, and my fear is I should have known better (i previously filed 6 years ago under chapter 7, so if i do decide to file, it must be a 13), I am still beating myself on not being able to overcome my issues that got me to the filing point previously, and obviously back to this point again.
Will I have to give the car back? What will the lawyer say when I go for a consult if the car was just purchased 2 months ago and now I decide to file BK? It is sending up flags in my mind, what would it do for a trustee or a lawyer or a judge. I read about the 910 rule, which obviously doesn't apply to me. I want to continue to make the payments, they are 350.00 dollars monthly. I know until I talk to a lawyer I won't know anything for sure, but i am so scared what the lawyer will say or won't represent me since I filed before and now am filing again and should have known better, or at least not have purchased a car. I had a dream last night that my name got sent across the state and no one should represent me because i took out this debt and then filed 2 months later. 2 months ago never considered filing again, I figured I would always work it out some how and get myself back on track. But now since i have the car my whole paycheck is covering just the minimums and now the car, i don't know what else to do. Thanks in advance if anyone knows something that could ease my mind even a little bit. Payton.

[rrockinggramma]

First of all, welcome to the forums. I, like you, filed a chapter 7 in 2001 and discovered, to my dismay, that it didn't help me out much at all. Fast forward and I am currently finishing up my chapter 13. Your attorney will not say a word about your car. You just can't cram it down in your new filing and will have to pay the full amount. I would recommend keeping it out of the plan if you can and have you continue to pay the 350.00 a month on it. Get a good budget together, start talking to attorney's or use your old one if you liked him/her and get going. Stop paying on everything but the necessary items, like food, insurance, rent, and car. Start gathering up all the documents you will need, bank statements, pay stubs, all bills and statements and make the lawyer appointment. The sooner you do this, the less stressed you will be and you will move forward in your life.

[liz417]

Hi there, and welcome to this forum!

Your car situation sounds like mine. I met with our attorney mid May (current on everything) and we have 2 cars, Auto 1 pretty new (commuter car for hubby), but my car was 1995 with over 240,000 miles on it. Our lawyer was "concerned" (she didn't advise because that would be considered unethical or something, just strongly recommended) that we look at a new car for myself. She said that we; the trustee, her and I were going to be "married" for 5 years. She said if I decided to purchase a new car, that she wanted to have it paid 'outside the plan' and have a least a couple of months on payments on it. She just pushed our file date back to Aug. no big deal.

So don't worry! It's funny, I was sooo stressed out about making the minimum payments to the cc, sinking fast...and what happens? I've got a new car (well, not new...I just felt too guilty, I've got a nice 2007 slightly used car).

Hang in there,

Liz

[woeisme]

Since you have to file CH 13, buying a car when your old one had 200,000 miles on it was a smart idea, not something you should be freaking out about! You will need a vehicle that will last the 3-5 years of your plan, and since a $14,000 car is not a luxury vehicle, your trustee shouldn't have a problem with it at all, and your lawyer definitely won't give you a hassle about it. Your only concern is that you will have enough money to fund a CH 13 after making your other expenses, if you can swing enough to fund a wage-earners plan, then you can do a CH 13. Good luck!

[Flamingo]

First, welcome; second "Ugh" - the robbing Peter to pay Paul....been there - you are just putting yourself deeper in debt that way and both Peter and Paul will eventually go broke and you will just keep falling and falling down that downward spiral into the black hole until you hit bottom and you realize that unless you stop doing what you are doing and face the facts, you need to talk to an attorney. Stop the Peter/Paul thing. You filed Chapter 7 under the old law and I believe it was a 6 or 7 year passage of time from that filing date that you could file Chapter 7 again. It is 8 years effective 10/05. Investigate that since you are an old law previous filer. After you get yourself together after this bankruptcy, you need to take a long hard look why you keep ending up in the same position. If you don't, another 6 to 7 years from now you will be in the same place and you will never ever have good credit again as it will take years and years before it all comes off. What kind of life is that? Also credit and loans for the next several years will be hard for anyone with bad credit to get because lenders are just pulling in the welcome mats unless you have stellar credit.

It's time to learn how to budget and how to handle your money...Best of luck to you.

[helpmestartover]

thanks for the advice flamingo, it is hard to hear but you are correct, I got myself back in this financial mess and i need to fix that or it will happen again. This has finally become my wake up call. Not saying that the 7 was easy. Everyone was pushing me to get reestablish credit after my 7 that i was taking all the credit i was offered and the interest rates were so high. using the cards to get a payment history, took our unsecured personal loands, and then even my car loan is 14% through capital one, i could not even get financing through some car dealers, without wanting 2-3 thousand dollars down payment. My biggest issue right now is I know I am filing, I have no choice in my mind to fix my problem. I just can not bring myself to stop making the payments. I can not take the phone calls again like I did through my 7. In my 7 I did not pay for almost 4 months and the calls were unbearable at the end, even when i didn't answer they'd call my work, my husbands business looking for me.
Since my car loan is so new, i am also afraid to contact a lawyer becuase i am afraid he'll make me give the car back or will question why i would take a debt on right before filing.

[Flamingo]

The hardest step for anyone faced with financial woes is to get beyond the denial. Yep, believe it or not you are in a bad spot and no matter who you blame for how you got there, you are there. One can wring their hands forever and moan away how hard it is but it just does not go away on it's own and no one will knock on your door and hand you a $100,000 check. Maybe in the movies but not in real life. As my dermatologist told me back in 2002 upon the removal of a suspicious small mole on my cheek (turned out to be basel cell carcinoma), "This is a warning shot." He was correct - it's time to take action to prevent more from occurring and staying out of the sun. In most posters' situations, and yours, you need to take this second delcline of yours as your "warning shot" and take corrective action. Your first step is to investigate your BK options and don't worry about the calls or the stuff you known will occur no matter what you do. As to the car, it is what it is - confer with an attorney.

Stop making those credit card payments and running up one bill with cash advances to pay the minimum payment on another. Let caller ID get the calls or just don't answer them. Utilize the extra money to pay for a BK attorney. I would this week see if you can get an appointment with a BK attorney who gives free initial consultations and find out the options availablie to you and what you can and cannot do as to filing and as to your car. You will feel better knowing you have answers that are correct for you.

Only you can take the necessary steps to get you back on the right road...get beyond the denial and get to see an attorney - they have seen and heard it all and your questions as to your vehicle will not even make him/her blink an eye. Best of luck to you.