Get out of Bankruptcy early and keep vehicles

[katee01]

Hi;
I want to know what options we have as far as keeping our vehicles (both new 2006). They are both on our bankruptcy filed 9-07;confirmed 1-08.
We fell behind on our payments (about $1100.00)due to job loss in June. We are now re-employed but the trustee wants the $1100. paid within 10 days and then resume normal payments. "Problem??" we won't have $1100. in 10 days (10-27)so our case will be dismissed. My attorney is no help, all he says is come up with the full amount on the due date., I will only have 2 paychecks in the meantime ($640.)and my attorney says the trustee will not accept partial payments. Since we don't have the money for the trustee we need to know what we can do to keep our vehicles? Also, if the case is dismissed I assume the "repo" team will be by fairly soon after the lender gets notification of the dismissal. Our vehicles are important b/c we both work 50 miles from home and don't live near buslines, etc. Can we re-file after dismissal? Is there a waiting period? Does anyone know of any options we may exercise?
Thanks for your help.

[Keebler]

I know it's hard because I'm in kind of the same boat. The difference is how I've decided to handle it and you should consider looking long and hard at the pros and cons of hanging on to a loan when there's other good choices.

I had one 2006 vehicle where we owed about what it was worth and had reasonable payments at a good interest rate. I also had a 1999 vehicle worth about what we owed with a far lower payment for a much shorter time.

The first vehicle was just way more than we really needed and the second vehicle was tied up in cross-collateralization where we'd need to repay two-times the value. Reaffirming $20,000+ worth of debt just doesn't make sense when our transportation needs can be served well for far less.

It was sure going to be convenient to hang on to both of them and there was a lot of good reasons why we should have. One of the best reasons was that replacing them was going to cost a bunch because financing anything with bad credit is never pretty.

Over some time it became clear that this Bankruptcy was intended to give us a fresh start and holding on to the cars was also holding on to decisions we made in the past. For this reason we planned to let them go and drive much more humble cars in the future so we can be debt-free.

It hasn't been easy dealing with the uncertanty of it all and the temptation to take out a loan has been strong. We did end up finding an eleven year old car last week that's decent transportation with a few minor problems. I spent the weekend getting dirty and fixing the problems and it's looking better and better. You gotta love the 100% down and $0 per month financing plan!

So then I recommend asking yourself which struggle you're most interested in battling. For us, finding a way to pay the unrelenting payments that go on for years seemed worse than being debt-free and buying some fixer uppers and spending money on repairs every now and then.

If your situation changes, you still owe those damnned car payments. If my situation changes, I can decide if I fix the car this month or not. You've already been shown once that employment is always temporary!

[katee01]

Thanks, Keebler, I only wish we had the same options available to us that you had (i.e 2nd vehicle that's paid for)unfortunately we don't. You see I work in one part of the city, and my husband works all over (electrician)the city and sometimes out of town. We also have 3 children (1 in daycare)that we have to get back and forth. So it is imperative that we can either keep both the vehicles or get a loan for another maybe older vehicle. I just don't know how we could get financed with a unpaid/partially paid bankruptcy. We would be o.k if the trustee would take the $600 and let us pay the rest in a separate payment or extend the 10 days..If there's a way to get another lender to pick up the car loans that would work also. I'm just lost at this point.

[Keebler]

Thanks, Keebler, I only wish we had the same options available to us that you had (i.e 2nd vehicle that's paid for)unfortunately we don't. You see I work in one part of the city, and my husband works all over (electrician)the city and sometimes out of town. We also have 3 children (1 in daycare)that we have to get back and forth. So it is imperative that we can either keep both the vehicles or get a loan for another maybe older vehicle. I just don't know how we could get financed with a unpaid/partially paid bankruptcy. We would be o.k if the trustee would take the $600 and let us pay the rest in a separate payment or extend the 10 days..If there's a way to get another lender to pick up the car loans that would work also. I'm just lost at this point.

I know I posted a bunch of information and I understand where you're coming from. But the fact is that we had two vehicles -- both financed -- and we chose to abandon BOTH of them which would leave us with ZERO. We've been through a difficult time and the answers seem much more clear now than they did a couple of months ago. I can assure you that the options you think you see for us weren't so visible a few months ago and our situation seemed as hopless as yours does now. You might not realize that my family is also the same size as yours including the smallest one who won't start school for another couple years.

It's hard to give good advice when everyone's situation is so different. If I could leave you with one idea, it would be to stop trying so hard to hang on to the vehicles (and the debt) and start thinking about how there's other choices waiting to be discovered.

We stopped making vehicle payments and started saving the dollars that would have gone toward them. From three months prior to filing to now we've saved enough to buy a $1,700 used car. We've been temporarily borrowing an older van from a relative and just found $500 junker for the second car.

One big benefit has been driving the car we intend to surrender (without making payments)! Every day I check PACER to see if this is the day the bank will petition the court to lift the automatic stay so they could come and tow it away. They payments we would have made on that vehicle alone helped pay for $700 of the replacement we found. Keep in mind that this conversation would have been very different just one week ago when we had NOTHING and were counting the days while we waited for the one vehicle left to get towed away.

It isn't pretty, and it isn't easy, and the convenience of keeping the cars already in the driveway was sure tempting. Please don't let the convenience trick you in to thinking there's no other choices. There ARE choices and they ARE hard to find but it IS worth the struggle.

[StartingOver08]

Keebler, this is excellent advise. Sometimes it is so hard to see the solution, but you did the right thing.

[b_girl]

I agree. Sometimes, when you're in the middle of this storm, it's hard to think clearly about all your options and about the best steps to take to best ensure your financial survival. Believe me--been there, done that and hoping that the decisions we finally made were wise ones. Good luck katee!

[AngelinaCatHub]

If your Trustee is reasonable, I would address him personally as now you are pro se. If he is not, then attempt due to circumstances to convert to 7. You may even address the auto mortgage and perhaps get an agreement from them to aid. Otherwise Keebler has excellent ideas.

BK is for a relief, you are not getting any. Go 7 and stop paying everything after you address Trustee. Remember, half of something , is better than all of nothing.

I wish you well. 'Hub

[Flamingo]

Go back and read your Plan paperwork. What many folks do not realize is that when there is a job loss that does not mean you can stop making your Plan payments. Our Plan specifically stated that if a job is lost we must continue to make payments. Your attorney is your best source to get you through this situation as he/she knows your entire financial situation and I am surprised that he did not attempt to get the Trustee to maybe extend your plan by one month and have you only make one payment instead of the two. There are things that can be done when an unexpected event occurs and it all depends on the trustee. I hope things work out for you.