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    Murphy stopped by again!

    For those who know my car saga here we go again.

    We had one car die and my husband and I shared a car for a while. Then my adult daughter bought herself a car and we took back the one she was driving and then we each had a car. We knew the tires were bad and the brakes were bad. We started car sharing again. The car sat in the driveway until we had enough cash that we figured would pay for brakes and tires.

    Took the car in for brakes and tires and guess what. A fatal diagnosis. It has so many other things wrong, the tie rods are rusting, it's not just brakes it is the hydraulic ABS system in addition to the actual brakes, the exhaust system and I a few other things I don't remember off the top of my head. The car has too much to be repaired. The ABS repair would be almost $3,000 alone.

    I called the attorney to see what our options were. The good news is that we could probably get approval to add a new car to our plan. The bad news is that we still owe about a year on this car and when this car is paid off that amount $227 goes into the BK plan. This means we will have an additional car payment, basically in real dollars it will be like paying 3 car payments per month.

    In order to get approval from the court we have to write a letter saying how we can afford this, including a budget and recent paystubs. We have to go to dealerships and get "preapproved" (my words not the courts), but we need documentation to show that we can get a loan through the dealership and make sure we can really get approved.

    I don't know what this meant exactly because the attorney's office said that we are committed to the plan have to make the payments to the car and then after the loan is up that amount to trustee that cannot be changed. Then they said that we could trade in this car which to me means it would be "sold" somehow. With my previous car before BK we had to roll the remaining loan into the new car loan. Is that something that we would have to do if it was "traded in" which I am sure would be for much less than what we owe. We owe $227 x at least 12 months at this point.

    I am not sure what to do since I know that car sharing would be terrible for the next 2 yrs and 3 months. It is taking a lot out of me since I have to drive him sometimes getting up at 4 a.m. and then I come home and get ready for work, sometimes he works late. He does not have a steady schedule it's different every week. I have to plan everything around his work schedule and then he gets mad if I pick him up "late" even though he says he understands it's hard on me. His co-workers give him a hard time that he doesn't have a car and several of the coworkers are single people who live at home with parents even though they are plenty old enough to be out of the house--like in their 40's.

    We shouldn't be, but we are helping our adult daughter a little financially which I will have to definitely cut back, but I don't think I can cut out totally. She had a pay cut during this time of covid, but she is still working from home. I already told her that I will have to cut back.

    I "lost" my second job due to the covid restrictions. My husband had some overtime, but I doubt it was the same amount I had made. I expect income to be slightly less. His overtime stopped around Thanksgiving.

    I am still on payroll at the second job and have kept in touch. I hope 14 days after Jan 20th I will be able to go back to that job. That is when my vaccine will be effective. They called last week, but I declined as I have been exposed to Covid on my job with coworkers as well as patients before they were diagnosed. We wear masks and shields, but they are not 100% fool proof. I have co-workers who are not cautious in their personal lives and are half way cautious around coworkers which is why I always wear the face shield with my mask when talking to them. They do take full precaution with patients which is about the only good thing I can say. We have a significant outbreak since early Dec at the nursing home and I hate it because I think most of it is due to people not taking precautions on their off time.

    With the vaccination I will feel comfortable going to two different nursing homes I hope they have enough work. Medicare is making some cuts.

    On my full time job we are getting a 2% pay cut which I am thankful since some workplaces are cutting up to 10%. A friend's spouse had an 8% cut.

    I can't take the second job income for granted and I knew that going into BK, but of course they count it as regular pay. I enjoy my second job it's a nicer workplace and no politics I can go in and work and focus on patient care and it helps me keep up my skills and learn more compared to my full time job.

    For now I will make a budget and research options for buying a car. The dealership we have dealt with for almost 20 yrs had info for "bad credit" in fine print on their website. I hope that means they work with Chapter 13 because I know it's a decent place.

    The money that would have repaired my husbands car will go into repairing my car since I never replaced my tires last year and they are long over due. I suspect based on mileage and occasional brake squeaking after it rains that I will need brakes soon. It's a 2017 with about 54,000 miles on it. From my internet research it needs brakes around 50,000 miles maybe a little longer if you are not heavy on the brakes which I am not. In the past I had service people surprised how long my brakes lasted.

    First priority to make sure our "good" and now only car is in top shape and start the research on what we can afford and what's available to us and then submit to court which can take at least 60 days from the time it is introduced to court.

    Husband and I will be dealing with this for a while. I think that I will have to talk him into taking Uber rides home maybe twice a week. That will be around $30 a week, but it will help my sanity. It's amazing how tiring it is to drive him and then I also go to work and leave work take him home and return to work. It's gas, mileage as well as my mental and even physical health. I am glad my job allows me to do this.

    #2
    Carmella, so sorry to hear about your simply awful situation - it sounds like something that would have happened to us if I had had to work during this BK13. Luckily for us, my husband is allowed to work solely from home ( for now) and I only drive my 17 year old car with 200K+ miles to the gym, chiropractor and PT. My husband made the last payment on his 2013 car in October and was able to obtain the title with little fanfare. Of course part of the increased payment was due to the original "step up" payment plan.
    It sounds like you do have a plan, and hopefully if the car is sold, maybe you will be able to recoup enough money to help lessen the "upside down" payments you will have to pay towards the newer vehicle. I hope your current dealership works with you and gives you as fair a deal as is possible given the harsh BK13 requirements for new credit.
    Good luck on getting a decent used car to get you guys through the next 2+ years!

    Comment


      #3
      Instead of taking a loan maybe take your stimulus check and buy a beater? You can normally get something for $2,000-$3,000.

      Comment


        #4
        Originally posted by lostinnola View Post
        Instead of taking a loan maybe take your stimulus check and buy a beater? You can normally get something for $2,000-$3,000.
        I have thought about that however we have taxes to pay and that was my plan when I heard of the $600 stimulus. We will get $1200 since we are married.

        If we could save up money to buy a reliable junker I would surely consider it. We have wanted to get my husband a new car after BK before he retires. It would be either a new/end of the year type compact car or a slightly used car because I would want it to last a while and considering he will be older and if he works it will be part time after retirement it won't get much mileage and we want it to last. This is why I might consider taking on something better than a junker IF it works in the budget.
        .

        Comment


          #5
          I also vote for saving up for a junker instead. Maybe have him do 4am Uber trips and continue partial car sharing until you've saved up for a junker. You want to break the endless cycle of auto loans going into retirement and pocket the money that used to go to auto loan payments. Unlike a pre-petition chapter 13 new auto loan designed to guarantee low auto maintenance via the warranty and eat up your ch13 budget, there isn't a good reason to do it post-petition. Auto loans are bad for personal finances even at 0% with 84 months worth of payments going to the lender instead of you.

          I'd start looking at available used cars $3k-$5k, look for those with good looking carfax reports, and then pull the records directly from the manufacturer owner websites to make sure all of the expensive maintenance was performed like timing belts.

          Comment


            #6
            That may be a good plan for you two, Carmella but for us that will not work in 2022. I've already got a junker and my husband really needs a newer car once he is forced to commute again after the stay at home moratorium ends. Our plan is for me to take the 2013 Sentra, while he hopefully gets a new (or almost new) car. Also, because we want a car capable of out of state (or country) trips once we can relocate, it is important to buy a car with no no issues and very low miles. Buying a junky car next year is like buying that run down house that we couldn't afford to fix up which led us 100% to this BK13 - a stupid disaster in the making! And I think we've made enough dumb decisions for the rest of our lives as it is,LOL!
            But for you guys, you've just got to get through the next 2+ years - I'm crossing my fingers and sending good vibes , it'll work out out fine!

            Comment


              #7
              Originally posted by flashoflight View Post
              I also vote for saving up for a junker instead. Maybe have him do 4am Uber trips and continue partial car sharing until you've saved up for a junker. You want to break the endless cycle of auto loans going into retirement and pocket the money that used to go to auto loan payments. Unlike a pre-petition chapter 13 new auto loan designed to guarantee low auto maintenance via the warranty and eat up your ch13 budget, there isn't a good reason to do it post-petition. Auto loans are bad for personal finances even at 0% with 84 months worth of payments going to the lender instead of you.

              I'd start looking at available used cars $3k-$5k, look for those with good looking carfax reports, and then pull the records directly from the manufacturer owner websites to make sure all of the expensive maintenance was performed like timing belts.
              My fear is we know NOTHING about cars and have no one that knows enough to guide us into getting a good deal. I worry about getting a car that will end up dying. The one that needs the major repairs now was kind of a rushed purchase at the time. I knew it had more miles on it than was probably good for the length of the loan, but it seemed to be the best option.

              What I really wanted to was get new or very new used cars for both us of before our respective retirement ages so we would have them and upkeep the maintenance so they would last the duration. We had one car we bought new (end of the season) and had it for many years literally drove it into the ground and got our money's worth.

              What we do now I am not completely sure, but I am not rushing into anything. I want to take time and figure it out. And make sure my car is in good working order as we have put off getting tires, etc. I know it probably needs more due to age. I have had oil changes at the quick oil change type of places, but no other maintenance. Also if I get work at my second job that will help to save up money quicker than we can do at this point. I could literally put every paycheck into a car fund.

              Comment


                #8
                I need a new car, but refuse to buy one. I'm going to see how long this 2012 Ford lasts. I really do want a new car, though. I'm hoping to buy a new primary residence this year (BK falls off credit report soon). I'm just unsure of the future and I'm so indecisive based on not wanting to file bankruptcy ever again.

                We'll see what the new year brings. I hope everyone has a better 2021! Just need to contain those murder hornets.
                Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
                Status: (Auto) Discharged and Closed! 5/10
                Visit My BKForum Blog: justbroke's Blog

                I am not an attorney. Any advice provided is not legal advice.

                Comment


                  #9
                  I feel your pain Carmella, lost my truck in november so the wife and i are sharing a car since then. It's very difficult since I work 16 hours a day so my wife is without a vehicle till I get home. After much thought I came to the conclusion to try and save enough money to buy something just to get me by. I rather keep these animals off my back as they seem to love making me pay more every time they look into something. I find it incredibly sad that they make getting a vehicle incredibly difficult while in a 13. I understand that i put myself into the situation, but I really believe they should make it easier to get a vehicle. Good luck

                  Comment


                    #10
                    gremlin, buying a car in the midst of a Chapter 13 is difficult, but fortunately not impossible. Like you, I needed to buy a car well into my bankruptcy and, yeah, it hurt; it took all of my meager savings as well as most of my food budget for the next month, but in the end it paid off. The good news is there are plenty of reliable used econo-boxes out there which can be purchased for reasonable money.
                    Latent car nut.

                    Comment


                      #11
                      Originally posted by gremlin View Post
                      I feel your pain Carmella, lost my truck in november so the wife and i are sharing a car since then. It's very difficult since I work 16 hours a day so my wife is without a vehicle till I get home. After much thought I came to the conclusion to try and save enough money to buy something just to get me by. I rather keep these animals off my back as they seem to love making me pay more every time they look into something. I find it incredibly sad that they make getting a vehicle incredibly difficult while in a 13. I understand that i put myself into the situation, but I really believe they should make it easier to get a vehicle. Good luck
                      Thanks for your comment it helps to know we are not alone. I just got my car fixed only $1600 for tires, rims and front brake pads, good to know it will be ok while we decide how to proceed. To prevent getting overwhelmed we are taking it a step at a time. My husband only works about 4-5 miles from home so it's not "too bad" but it's not easy either scheduling around each other. Or the wasted time when I have to leave work to pick him up, take him home and return to work.

                      Comment

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