Intro and A car question

[whocanhelpmenow]

Thank heaven for this board. I have been scanning past posts looking for car/chapter 13 related questions. I am a married mom with 2 children and found myself considering Bankruptcy about a month ago after reading a newspaper article on reasons why it may be the right choice for some. I immediately took to the internet in search of information and found this board as well as other not so active or info driven as this board.
I work full time, I can easily support a chapter 13, doing all the math on my own, I wouldn't qualify for a Chapter 7, plus I have assests to protect.
Now comes the part that I am getting mixed feelings on my timing to contact a lawyer and actually file. I just bought a new car, with the reasoning I needed something to survive a 5 year plan. I feel like I planned ahead but now am really worried about contacting a lawyer since I have only just done this recently. Today I looked over my loan terms for the car, and i noted a clause in the fine print that certifies that I was not in BK proceedings or contemplating BK and all these sirens went off in my mind. I read some posts on car purchasing and it appears that it is something people do prior to filing, but I am really worried that since the loan is rather new it wasn't my smartest move. I would like to retain a lawyer to get the process moving along, with the idea of saving up for my payment to file. If I stop paying the creditors, I could file by Oct. 1, but I'd like the protection of the lawyer being retained during the harrassing phone call phase. Do you think this is wise or should I wait a bit to call a lawyer since I just bought the car? Should I make a few payments even before retaining the lawyer. I am at my wits end with worry over if I can make it a couple months before speaking to a lawyer. I want to call, but am worried that it would screw up a potential case if I should not be trying to retain a lawyer if I just made a major purchase (actually knowing I may file). It even worries me to type it because I feel like I did something wrong, however many of the posts I read it seems like preparing for the next 5 years with a car is wise. The interest rates on used cars, which was I intended to purchase were crazy high, I was able to lock in for a 08 at a fairly good rate, 7%. I understand I would keep it out of the plan, but is there any chance the trustee or car financer will make me give the car back.

[liz417]

I think you'll be fine, just set up an appointment with several attorneys. My attorney "suggested" we look into better transportation for myself. She said, "we are going to be married (trustee, her, hubby and myself) for the next 5 years" My car was 13 years old and had over 240k miles on it...it was weird at first, we went to the attorney because we were at the end of our rope, maxed out on cc's and stressed beyond belief...now we have a new car (used 2007, because I couldn't bring myself to purchase something "new").
Our attorney said that we would pay for both cars outside the ch 13 plan and that she wanted us to have a couple of payments under our belt before we began this journey...

You'll be fine....Good Luck to you!!!

P.S. I bought an economical car and got rid of the gas-guzzler....

[Flamingo]

You did the right thing and please try not to worry so much. You are at the most stressful time for anyone contemplating filing BK. Ensure you make payments on the car and your mortgage until you see an attorney (there is no need to wait to do that - consultations are just consultations and not a commitment to file). Providing all you are saying is true and you will qualify for a Chapter 13, you will probably have to make your car payments outside of your Plan but please note that the vehicle will be included in your bankruptcy since it is a debt, even though you may make the payments outside of your Plan, and will show as such on your credit reports after your filling.

[whocanhelpmenow]

Thanks for the information. I bought a fuel effecient car over my gas guzzler. I understand it will be included and reported as part of the BK, at this point I am more worried it will be taken back, not because of missed payments but because I just bought it and then decided to file. As for it being reported on my credit report, my report is not looking that great right now. My debt to income is really high, I am maxed out on 7 credit cards and the interest rates creeped up over the last year. Even in my car shopping I came to find I did not qualify for 0% financing or low rates.
When I do some free consults, is it possible to hire a lawyer and save up until I have enough to file in an attempt to keep creditors away? I've read posts that it could take 6 months for creditors to take action. I tried stopping paying on some of my cards and after 1 missed payment I started getting calls. Every hour a call would come that finally I answered. I ended up paying. Another cc kept calling my cell phone then work number, at my work line, another staff picked up and the message said please hold for a message for........(my name)........It was a creditor, I quickly hung up. One night i answered my landline which we rarely use, and low and behold the same creditor was calling that number. I can only think they found that number through a data base. I paid on that card then too. I didn't hear from Capital One, the other one I didn't make the monthly payment on.
I hate this sense of failure, even after reading that this may be the smartest choice. With the new car barely off the dealers lot, I worry how I will present that to the lawyer if asked why I took more debt knowing I may file when I do make that consult appointment.

[justplaintired]

Thanks for the information. I bought a fuel effecient car over my gas guzzler. I understand it will be included and reported as part of the BK, at this point I am more worried it will be taken back, not because of missed payments but because I just bought it and then decided to file. As for it being reported on my credit report, my report is not looking that great right now. My debt to income is really high, I am maxed out on 7 credit cards and the interest rates creeped up over the last year. Even in my car shopping I came to find I did not qualify for 0% financing or low rates.
When I do some free consults, is it possible to hire a lawyer and save up until I have enough to file in an attempt to keep creditors away? I've read posts that it could take 6 months for creditors to take action. I tried stopping paying on some of my cards and after 1 missed payment I started getting calls. Every hour a call would come that finally I answered. I ended up paying. Another cc kept calling my cell phone then work number, at my work line, another staff picked up and the message said please hold for a message for........(my name)........It was a creditor, I quickly hung up. One night i answered my landline which we rarely use, and low and behold the same creditor was calling that number. I can only think they found that number through a data base. I paid on that card then too. I didn't hear from Capital One, the other one I didn't make the monthly payment on.
I hate this sense of failure, even after reading that this may be the smartest choice. With the new car barely off the dealers lot, I worry how I will present that to the lawyer if asked why I took more debt knowing I may file when I do make that consult appointment.

I see nothing wrong with what you have done. You are simply planning for your future. I would definitely start meeting with some different attorneys. Keep making your car payments. I would say once you have met with a few attorneys and find the one you like, retain him. He will have you stop paying cc. Stop charging. This hopefully will free up the cash you need to pay your attorney fees. We found an attorney who was willing to take all those type calls for us. You need to inform all collections calls they are not allowed to call you at work period. You will find answering the home phone even though it's annoying is your best bet to avoid these calls coming in on cell phones or work phones.

You are in the beginning stages which is stressful. Very stressful. But it sounds like you have accepted your situation and now want to make it better. You're on the right track. You just need to find a good attorney now. If you are filing BK you are wasting money sending payments to these creditors, save the money for the attorney.

Best of luck to you!