Another question regarding creditors/reposession

[nurse78]

I have an appt Thursday morning with a bankruptcy lawyer. If I retain this lawyer, does the threat of repossesion stop once I notify the bank that I have retained a lawyer? My car loan and checking account is with a credit union. My car loan is current BUT my checking account is negative. They are threatening to take my car away if I don't deposit $200.00 by Friday. The negative balance is $-425.33.

I want to use the little bit of money I have left to retain the lawyer on Thursday.

Any suggestions?????????

[keepmine]

For the automatic stay to go into affect, you must actually file bk.
You better get current.

[hmsmith]

retaining the lawyer will not stop a repo. Once you actually file your bankruptcy then the automatic stay goes into effect, but according to what I've read even then they can file for relief from stay and still repo the car. I would get current if you can.

[frogger]

Any suggestions?????????

Yes. File bankruptcy if that is your plan.

Making the statement that you have "retained a lawyer" is about as useless as teats on a boar hog.

[nurse78]

Great, that is exactly what I was afraid of. Well, I better get that checking acct. back to $0 and quickly. Thanks for all your feedback. I am so new to this process, I don't have a clue what to do/what not to do. THANKS AGAIN!

[LadyInTheRed]

Welcome to BKforum, nurse78. Do as much reading here as you can before your meeting with the lawyer. if you get a general understanding of the BK process before your meeting, you will be able to ask specific questions about your situation and make the consultation more produtive. I recommend you leave your checkbook at home and not retain the lawyer on Thursday. It is easy to feel the pressure to sign on the dotted line. It is better to reflect on your meeting and decide later whether you are comfortable with the attorney. I also recommending consulting with more than one attorney before you decide which one to retain.

[ksgirl38]

Great, that is exactly what I was afraid of. Well, I better get that checking acct. back to $0 and quickly. Thanks for all your feedback. I am so new to this process, I don't have a clue what to do/what not to do. THANKS AGAIN!

Join the club! I'm new here too. The best I can tell you is to talk to several attorneys until you find one you are comfortable with and feel that you can trust. Good luck!

[btbeme]

A strong suggestion - start banking elsewhere. Like, now. The moment you file BK (and include the car in that filing, as you must) the credit union will immediately freeze and seize your checking account. Guaranteed. Especially if you are behind on payments. Start an account somewhere else and have your deposits go there.

Even if you have a negative balance, having your account frozen is a major PITA. You need an account somewhere else.

[AngelinaCat]

I second btbeme. Do something about your checking account. You are at a CU, and once you file--unless you have talked to your CU bankruptcy department, you will be blocked, and invited to move your accounts elsewhere, as you have"let down the membership" and other such language.

This happened with our CU, but 'Hub talked with them, and we got reinstated. He had been with this CU for 40+ years and wished to remain. We had to reaffirm a car loan, and overdraft protection loan in order to do it, and get our online access reinstated. They were nice about it and even reversed the NSF fees that happened when check bounced because the accounts were frozen.

[nurse78]

Thanks for all the advice I really appreciate it. I am done with the CU, I stopped my DD a long time ago. The attorney I saw on Thursday charges $2300.00 with the filing fees. I think that sounds like a lot of money, which I don't have. At this point, I don't think I can afford to do this, I am beyond depressed and stressed to the max. I just don't know what else to do! Trying to stay positive but it's becoming harder and harder each day!!!!!!!!!!!

[TheBajan]

Can you tell us more about your situation? I know I felt the same way after meeting with our first few attorneys. I was so depressed b/c it sounded like I was too broke to even file BK! Our last attorney [the one we hired], gave us a completely different set of options and turned everything around so cheer up... keep reading the posts here and learn more about the process. Everyone here is eager to help b/c we are all in the same boat. Keep going to those free consultations until you find the attorney you understand and who will really listen and take the time to explain what's going on.
Best wishes and welcome!

The Bajan

[btbeme]

The attorney I saw on Thursday charges $2300.00 with the filing fees. I think that sounds like a lot of money, which I don't have.

There are several legit ways to pay for an attorney - $2300 isn't a bad price at all for a good attorney. First, as you stop making all payments except for those things you want to keep, use that cash to pay the atty.

Second, you can sell assets at FAIR MARKET VALUE and use that money to pay the atty - document what you sell, for how much, and track the deposits into your acct and then to the atty. You will want that paperwork trail.

Third, it is legit to get a loan against an asset such as a car, then use that loan to pay the atty. Make sure that loan is recorded on the title of the car - that is critical - and make a payment or two (small ones).

Fourth - it can be legit to get a gift from a friend or relative to pay for an atty. This needs to be done exactly the right way, so consult with your atty to see if it is allowable and make sure you jump through all the hoops necessary to make this fly.

There - four ways to get the money for an atty. Somewhere in there you should be able to cobble together a plan. Planning a BK can take time, so make your plans early so you don't get rushed into decisions before you have all your ducks in a row.

[nurse78]

Ok Thebajan here is an overview of my messy stressful situation: I work as a registered nurse and my hubby works at GM. We made $109,000 last year which is the MOST money we have ever ever made. We have 3 children 18, 15 and 13. My 18 year old starts college in September. I was a stay at home mom for years and we used to scrimp and scrape on everything. I bought a 2005 Tahoe last year with a 16% interest rate and a payment of $485.00 Biggest mistake of my life. Our mortgage is $1080.00 and we owe $82k, house is worth $150k. We have 12 years left to pay on it. The majority of my bills are medical, credit cards, the balance from the voluntary repo $9k of my Tahoe. I have 3 student loans totaling $32k (which I know I can't discharge). These loans total $600.00 per month. We owe taxes from 2010 & 2011 which total $7k. My total to put in the BK is right around $16-17k. My husband isn't claiming because the lawyer said he wouldn't be able to do a 7 because he has a 2009 G8 which is worth $20k but we only owe $6k on this car. I have another SUV worth $10k and I owe $7k on the loan, which is always behind a month. My hubbys bills aren't bad, he owes a few hundred dollars in medical bills and our mortgage is in his name. My husband was injured at work in March 2012. He fell on ice and now has 2 herniated discs. He has been working all along until 3 weeks ago when the Dr. took him out of work totally. Now this is a man who NEVER missed a day of work, shows up an hour early and so forth. So he is getting workers comp which is $120.00 less per week. I have been working 24 hrs per week until I can resolve this bankruptcy because if I work more hours, I don't qualify to do a 7. Only reason I qualify right now is because my husband is on comp. and I only work 24 hours a week. This is a catch 22, I am behind one month on my mortgage and am struggling to stay on top of my other bills because each paycheck I have a huge bill to pay whether it be the whole mortgage out of one check or my gas & electric which runs $300 month. Everything is always late and I am always BROKE. So if I work more hours to pay the lawyer, then I don't qualify!!!! So frustrating!!!!!! I know I need to get on a strict budget once this is all settled. I have made it clear to my husband, I will NEVER EVER EVER get myself in this situation again. I guess right now I am damned if I do and damned if I don't. I can't sleep or eat and working these two 12 hour shifts per week are a struggle because I am always stressed out and completely miserable. Always worrying someone will be at my door to shut something off or serve me papers, this is NO WAY TO LIVE. Well thanks for listening and I hope you all have a nice day. I am off to work 7am-7pm!!!