Dropped Bankruptcy-No recourse

[Stepham]

I recently filed for bankruptcy and was to go for confirmation on 6-15-05 . However(3) days before the confirmation, my attorney calls and informs me that he had a status conference with the Judge and that I would have to turn in the leased vehicle, leased in August 2004, which my 84-yr. old step-father cosigned for or have my step-father pay half my note which is $526.00, which I was not going to do, because he is on a fixed income. Furthermore my attorney stated he did not even know if the judge would agree to that option . When I initially went in to the attorney's office, I indicated that I did not want any problems with the car and that the payments were taken directly out of my bank. He indicated that it was best to include the car cause it would make my overall payments for bankruptcy go down . The lease on the car is up 2006 . The attorney never did advise me that it would be a problem with the car. Certainly I would have no problem returning the car if my step-father had not cosigned. I did not want to mess up his credit and the attorney did not come up with anything else, nor did he advise me that there would be a problem . Was there any other recourse, can I refile? What about Chapter 7? Only reason I got the car because of transportation, my other vehicle at dealership with $2,900.00 repair bill, which they were in the process of selling, claimed under filing, rec'd vehicle back .

Desperate!!

[HHM]

What other debts were you trying to address with your chapter 13?

Also, if you are already in a chapter 13, odds are you won't qualify for a chapter 7.

[Stepham]

Hi HHM, other debts are approx. $45,000.00 in debts, 1 repo from Chrysler Financial for my husband for $ 8,000 .00, 1 court garnishment for me for a vehicle that goes back to 1993 in the amount of $6,000.00 . $ 2,000.00 in Federal taxes for money rec'd from my employer for ending Pension Plan which I did not rollover . $2,900.00 for car repair which was returned to us from Dealership, which since the BK 13 case was closed by us is trying to repo. The remainer of debts are all unsecured . Can we file a Chapter 7 now? Case closed 6-15-05 . Another attorney who is handling garnishment case for my employer(see posts by me Is employer trying to pull the wool off) indicated to me that we should have filed chapter 7 . Need some direction here .

[Stepham]

Need some direction here .

What other debts were you trying to address with your chapter 13?

Also, if you are already in a chapter 13, odds are you won't qualify for a chapter 7.

HHM, we are no longer in Chapter 13, we did not go to the confirmation on 6-15-05, case closed . Debts we are trying to address, Approx. $45,000 in debts, majority are unsecured claims with the exception of the following, (1) repo for my husband from Chrysler Financial for $8,500.00 , (1) repo for me that goes back to 1995 in which I have rec'd a garnishment for my wages, amount claimed $6,900.00 . Do not own house, rent of $750. Behind (2)payments, Utility Commpany (gas) bill is now $2,800.00, now that the case is closed , $2,900.00 to car Dealership for repair of other vehicle than we own, that they had to return to us on the BK proceedings, however they are now trying to repossess again . Another attorney who was handling garnishment for my employer ( see thread is employer trying to pull the wool) says that we should come in & talk to him, because we should have not filed a BK 13 that we should go 7. What do you think ?

Stepham

[HHM]

A chapter 7 generally makes sense unless you are trying to keep an item of property, i.e. house or car that you are behind payments in.

However, if you have more income than necessary living expenses, you will end up in a chapter 13.

But yes, go see a lawyer about a chapter 7 and try to get your bankruptcy filed before October 17, 2005 when the new BK law takes effect.

[Lightning]

The function of a co-signer is that the person promises to pay the debt if you can't. Unless you pay the full amount of the lease, your step-father will be billed. If he doesn't pay or can't, his credit report will reflect that, and he can be sued. Any assets or income he has that aren't exempt will be available to this creditor.

A co-signer should always be prepared to take over the full debt. They're being asked to assume a risk the bank won't. The bank believes the borrower is likely to default, so they want someone else's credit and income on the line for the debt.

I'm sorry for your situation, but your step-father put his word, signature, and credit on the line when he co-signed for you. If you don't pay the debt, he'll have to.

[Minnymouth]

Lightening my man, this time I have to "agree" with you......

My gosh, that shoe size of yours has come down to a 9, I think!!!

Minny