Payment New B Question?

[lillymarlene]

What does "Pay back the car" mean? They are both paid for. ?? Also 1250?? Dont get it

I didn't get it at first either. I felt that I was being "penalized" for a good thing, having a paid off car. I did a 13 to keep my car (my state only had an automobile exemption of $700 at the time) and some other non-exempt business assets. Then, in a 13 anyway, you have to give up most of your disposable income, to pay towards your creditors.

But, I think it makes more sense as I go along. I'm only 12/48 months in, but there is a lot of good things to be said about this "debt-free" lifestyle. And eventually, it will be wonderful to finally eliminate that crushing amount of debt I had.

[justbroke]

What does "Pay back the car" mean? They are both paid for. ?? Also 1250?? Dont get it

It means paying the value of the car in the Chapter 7/13. See my prior post.

[eltaur2000]

Re

Why would I not get the most from my bankruptcy Donald Trump did it and thousands of corporations do it all the time. I have no problem with paying what I owe. I paid for my car my mortgage is never late and my credit is in 780's.

I had a 18k surgery that I was paying and I ended up with plications and another bill of 7k. I bought my new house and some appliances. Those are are all 60 month interest. I can pay all that without a problem. It's the CC and their interest that are going to burry me. The principal is not a problem.



How dare you try to discredit me or talk down to me for finding the best possible solution to my future problem .

What does "Pay back the car" mean? They are both paid for. ?? Also 1250?? Dont get it

[AZNoName]

When you're figuring the value of your watch and applicances, are you calculating the 'yard sale' value for those items? What you paid vs. what it's worth used could be very different

[justbroke]

JB? Wouldn't the OP be a 60 month Chapter 13? He is waaaay over the median income for his state and a family of 1 or am I missing something here? I ask because I want to learn!

I thought someone opined that it was a family of 2. Going back and reading the response to household size, then yes... over the median and 60 months.

[AngelinaCat]

Again, no one's trying to be snarky, they're just trying to get you to realize the scope of a Chapter 13.

Whether it is a Ch13 or a Ch7, Bankruptcy is NOT a game. It is a VERY serious matter. Almost no one here ever wanted to file bankruptcy in the first place, did so only after exhausting every other means possible trying to stave off the inevitable.

[ValleYum]

Should you choose a Chapter 13, you will need to pay at least the value of the $8K watch and the $7K car (less the exemptions), in the Chapter 13. If you are under the median, that means 36 months. I would guess at least $14K to pay back the car and watch alone (over 36 months) or about $389/month. Then, there is the other secure debt which may include your appliances -- based on whether you can avoid the liens. That could be another $400/month over the next 36 months. Then you'd have your home to pay $1,000/month, Trustee fees (maybe like $200/month), and attorney fees. That's $2,000/month just for minimum debt service. Then you might end up having enough DMI to pay 100% over the next 36 months (which is likely)... at maybe $45000/36 = $1,250/month.

It may work, but it would probably be a 100% plan anyhow. You won't know until you have an attorney REALLY work the numbers; or you work them yourself.

JB? Wouldn't the OP be a 60 month Chapter 13? He is waaaay over the median income for his state and a family of 1 or am I missing something here? I ask because I want to learn!

[papie]

Why would I not get the most from my bankruptcy Donald Trump did it and thousands of corporations do it all the time. I have no problem with paying what I owe. I paid for my car my mortgage is never late and my credit is in 780's.

I had a 18k surgery that I was paying and I ended up with plications and another bill of 7k. I bought my new house and some appliances. Those are are all 60 month interest. I can pay all that without a problem. It's the CC and their interest that are going to burry me. The principal is not a problem.

How dare you try to discredit me or talk down to me for finding the best possible solution to my future problem .

Corporate bankruptcy is completely different from personal bankruptcy, and most corporations that file bankruptcy don't "get the most from it." There is no sense in even comparing yourself to a corporation.

And, you apparently DO have a problem paying for what you owe, because you stated paying interest on your debt would bury you. The interest is part of what you agree to pay when you took on credit cards and therefore, it's part of what you owe.

No one is trying to discredit and talk down to you, they're trying to tell you that your expectations for bankruptcy are not realistic. There is no trustee out there that is going to say, "gee eltaur, I know you really like your ipad, gym membership, and cable, so we'll make sure we pay the credit card companies as little as possible so you can enjoy your daily luxuries. It doesn't happen.

Sometimes it's really hard to admit that we mess up. Part of a successful bankruptcy is realizing that mistakes have been made and in order to get out from under this debt you have to make sacrifices. That means giving up some luxuries temporarily so you can get through your bankruptcy and move on to a better debt free lifestyle.

No one can tell you what your payment would be. There are so many factors we would just be wasting your time by taking wild stabs at it. I would find a bankruptcy lawyer and do a free consultation. Get together your tax returns, pay stubs, the latest copy of credit card statements, mortgage statement, any other debt, and go ahead and write down your monthly budget that you follow right now. That way during your consultation you'll have everything and they can run some numbers for you.

Again, no one's trying to be snarky, they're just trying to get you to realize the scope of a Chapter 13.

[justbroke]

eltaur2000, I believe that the best for you is to get 3-5 "free" consultations with some attorneys in your area. I believe that everyone is saying that you may actually be able to keep your things... without filing Chapter 13. For example, the "liens" on appliances, would pass through the bankruptcy anyhow! Besides, they may be "household" goods and subject to being avoided. These are the things that an attorney can help determine when they get all your financial information. Even without avoiding liens on your new appliances, you could keep them anyhow since they may be considered "secure" debt. That means, you just keep paying for them.

It's hard to compare Donald Trump to any of us. Those types of debtors use Chapter 11 which is entirely more complex than a Chapter 13. In fact, GM filed Chapter 11 and came out of Chapter 11 in just 40 days. Yes, discharged in 40 days.

I would not even worry about the watch. You could "buy" it back from the Trustee. But why keep an $8,000+ watch? I gave up my Cartier and wear a simple classic Movado now. If I asked you to give me your $8,000 watch so that you could discharge $45K in credit cards? In fact, why not sell the watch and settle with the creditors?

Should you choose a Chapter 13, you will need to pay at least the value of the $8K watch and the $7K car (less the exemptions), in the Chapter 13. If you are under the median, that means 36 months. I would guess at least $14K to pay back the car and watch alone (over 36 months) or about $389/month. Then, there is the other secure debt which may include your appliances -- based on whether you can avoid the liens. That could be another $400/month over the next 36 months. Then you'd have your home to pay $1,000/month, Trustee fees (maybe like $200/month), and attorney fees. That's $2,000/month just for minimum debt service. Then you might end up having enough DMI to pay 100% over the next 36 months (which is likely)... at maybe $45000/36 = $1,250/month.

It may work, but it would probably be a 100% plan anyhow. You won't know until you have an attorney REALLY work the numbers; or you work them yourself.

[eltaur2000]

Honestly I don't think that appliances that you haven't paid for yet, one watch worth 8k and a car worth 7k is going to cause you to lose any of it. It's really not that much depending on when you bought them. You say the watch is paid for. Is that part of the 52k in CC debt? They may let you keep the appliances depending on when you bought them. Most attorney give a free consulation and can help you determine if you qualify for a chapter 13 or a chapter 7 and explain the basics. I would suggest you start there and then once you get an basic understanding about bankrupcy and the differences between the two be sure to then read, read, read about everything you can get your hands on.

Are you being sued or have you received a summons? Are you still paying your credit cards and are they current. If you are still current and you aren't being sued for non-payment you have some time to make an informed decision. There are certain timing issues that you have to be aware of before you file.

Honestly from your other post you sound like you would like advice on what the best way to get the most out of bankrupcy. Sure some people figure out how to work the system but I don't think you are going to find advice on how to do that on this board. You aren't going to be able to continue to live the way you have been and be in a chapter 13.

Being in a chapter 13 is not going to be an easy ride. Yes, you can live but it will be difficult no doubt about that. If you don't find out all your options and get informed a chapter 13 will never work for you and you will fail.

Why would I not get the most from my bankruptcy Donald Trump did it and thousands of corporations do it all the time. I have no problem with paying what I owe. I paid for my car my mortgage is never late and my credit is in 780's.

I had a 18k surgery that I was paying and I ended up with plications and another bill of 7k. I bought my new house and some appliances. Those are are all 60 month interest. I can pay all that without a problem. It's the CC and their interest that are going to burry me. The principal is not a problem.

How dare you try to discredit me or talk down to me for finding the best possible solution to my future problem .

[mountanddo]

No you can't. Even when you are in the HR office signing up for your insurance, W2 Form, and everything else, something can happen to have it all pulled right out from under you. It has happened to me.

Yep, that just happened to someone where I work. He was hired at $117k 9/1. He was laid off last Friday, the same day he returned his benefit forms. His benefits ended Friday.

[AngelinaCat]

I know the job is mine but I can't count on it for sure.

No you can't. Even when you are in the HR office signing up for your insurance, W2 Form, and everything else, something can happen to have it all pulled right out from under you. It has happened to me.

[mountanddo]

Honestly I don't think that appliances that you haven't paid for yet, one watch worth 8k and a car worth 7k is going to cause you to lose any of it. It's really not that much depending on when you bought them. You say the watch is paid for. Is that part of the 52k in CC debt? They may let you keep the appliances depending on when you bought them. Most attorney give a free consulation and can help you determine if you qualify for a chapter 13 or a chapter 7 and explain the basics. I would suggest you start there and then once you get an basic understanding about bankrupcy and the differences between the two be sure to then read, read, read about everything you can get your hands on.

Are you being sued or have you received a summons? Are you still paying your credit cards and are they current. If you are still current and you aren't being sued for non-payment you have some time to make an informed decision. There are certain timing issues that you have to be aware of before you file.

Honestly from your other post you sound like you would like advice on what the best way to get the most out of bankrupcy. Sure some people figure out how to work the system but I don't think you are going to find advice on how to do that on this board. You aren't going to be able to continue to live the way you have been and be in a chapter 13.

Being in a chapter 13 is not going to be an easy ride. Yes, you can live but it will be difficult no doubt about that. If you don't find out all your options and get informed a chapter 13 will never work for you and you will fail.

[eltaur2000]

Stuff

I'm 31 a bit chunky but in good health.

I want to keep my house, car, watch, appliances.

I want to pay them back and I can pay back the principal but the interest will burry me in debt. It will be another 30k in in interest and it will ruin my credit anyway so that's why I'm looking to make this move sometime next year.

I'm pretty responsible I have over 300k in credit available credit and I was a shoe in for 100k job that would have more than plenty to pay my debt in under one year.

I tend to spend it before I get it the American way and the job fell throu. There is still a possibility the job might call. I was a finalist and we were waiting for hr approval. I know the job is mine but I can't count on it for sure.

[AngelinaCat]

May I ask how old you are? Also what is your health like?

Also, it is possible to file a Ch7 and keep some of your stuff that is not covered by your state's Exemptions. If you have things that are not covered by the Exemptions, then you become an Asset Case, and the Trustee may offer you the option of buying your non-exempt items back from the BK estate.

Go through some of the Stickies in both the Ch13 Board, and the Ch7 Board. The more you read and learn, the better you will understand the process.

And no one is here to "pull your ears off".