Sigh...my auto finance company files motion

[originalhealer]

Okay, I expected that right after I filed my BK, that my landlord/leasing management company would file a Motion for Relief from the Automatic Stay, which they did.

But, just now I was looking on Pacer, and I found that on Wed my auto finance company also filed a Relief from the Automatic Stay.

What annoys me is that they are accusing me of not having auto insurance, when they know that I do have coverage, because I had to have my insurance company fax them proof so they would give me the code so that I could start my car because I have that stupid timer on the car.

Then, they annoy me even more because when I asked them what the payoff balance was, they told me it was 12,967.00. I checked Kelly Blue Book under trade-in and it was 4850.00. But in the Motion, they said I owe 8,927 and the NADA retail value was over 9,000.00. Hmmm....what's going on here?

I wonder if they took into account the 81,000 miles on the car??? It's a Ford Taurus, not a Mercedes!

AND, they have more incorrect info in the Motion, because they said I didn't make my payment when I did! This is really getting annoying.

[Whittio]

A Ford Taurus with 81K miles?! Wow.. I would just let them have it if they want $9k for it! LOL

Couldn't you just let them have it back, and be done with that too? You could probably get a nice older Civic for $2k-$3k.. it will last you many more miles then that Ford will!

[originalhealer]

That's a great idea...unfortunately I don't have that kind of money right now. A friend gave me a good idea...she said to take the car to a Ford Repair Shop and get an estimate of the work that needs to be done....it has an engine light and brake issue...I can use that as part of my defense and possibly get them to re-negotiate their interest rates, since right now they are over 29 percent.

[Whittio]

If it has that many miles, and that many problems, are you sure you WANT the car? You won't have any money to do the repairs will you? Or am I just not "getting" it? What money will you have to do the repairs later? Couldn't you just use that money to buy something else?

I might be wrong, but my experience with Fords is once you start having problems, it only gets worse. And to keep paying on a car that isn't worth anything, and you keep pouring money into seems silly.

I know used cars are priced differently all over the U.S., like here, you can get a darn nice used car for about $2000, maybe that's not the case where you are? How much are your car payments? Remember, if you don't have credit card or car payments, it won't be hard to save up $2000?? Can you take public transit or get rides for a few months till you save up enough to pay cash for a used car? Again, I don't know where you are, here where I live, that would be virtually impossible! But so many areas it's feasible.

I just hate the idea of making payments on a car that isn't worth keeping!

[originalhealer]

Where I live, though there is public transportation, it is VERY inconvenient. For instance, a trip that would take 20 minutes by car could take two hours on the public transportation. I was without a car for eight months and hardly went anywhere because of it. I DO NOT want to go through that again!

My payments are 350.00 per month. I just wanted to hold onto the car for about six months until my BK was discharged and I had saved up enough money for a decent downpayment on something else. But in my state, they won't let you keep secured property without redeeming it or signing a reaffirmation agreement.

I contacted 722 Redemption Funding and they told me they can't give me a loan to redeem my car because the car has too many miles on it (their limit is 60,000 for a 2003).

I was hoping to just continue to make payments and hoping that no one would say anything. But it is apparent that my finance company is playing hardball.

[Whittio]

But in 6 months, you'll still owe lots on it and won't be able to sell it. If you let them have it back now, you're out of the deal with no worries!

I am new at this, so please forgive me if I am not understanding something, but to get out of a loan that you still owe loads on, and the property isn't worth that much, I would hand it over and find a junker to get by for a few months. Even 6 months will get you $2100, enough to buy a car?!

[originalhealer]

You are absolutely right. But I don't have any money right now. I just started a new job. If I turn over the car, how am I going to get around? This is what I'm scared about. I HATE being on the bus! It SUCKS!

I live in a city where everything is really far apart. My job will be 20 miles each way from my new apartment. But I don't want to reaffirm! That deal is not a good one...I am thinking of renting a car on the days I really need one...I wish I could think of a better idea...but even the "buy here, pay here" lots won't take me with an open BK unless I have a large downpayment...

But, if I'm not paying the expenses on a car, it would be easier for me to save up the downpayment. But on the flip side, it will be easier for me to hustle and find a better paying job if I have my own transportation.

[Whittio]

I really don't know much about this, it just seems that if you have a chance to get out from under that balance and payment, when you really don't stand anything to gain by keeping it, then you would be better off without it!

Just think of it this way.. at least you HAVE the option of busses. I live 30 minutes out in the middle of nowhere, and there just aren't any options. Now, you have a job, do you have any co-workers that you could carpool with? I would just say, "hey, my car needed all this work, it wasn't worth keeping anymore, so I gave it back to the bank, could you give me a ride for a few months while I save up enough to buy a car?" they don't even have to know you filed BK.

The other thing is, and this might be totally obvious to you, but you're just getting out from under all this debt. Keep it that way. You mentioned a loan, I know that's only to get you into a car "now/sooner".. But the longer you can wait, and save up enough cash, you won't be in the payment bind anymore.

Also, think about all the payments you send to your cards that you won't be paying, your car payment you won't be paying, and your car insurance!! You'll be able to save up enough cash for an affordable car in no time. Once you get that car, just start saving for another, nicer one!

Gosh, I sound like the proverbial "mom".. sorry bout that

I am just going through this with MY mom. But our roles are reversed, she's the one filing BK (well, I am doing it for her actually).. but I know she's going to save $500 a month on credit card payments, and she's gonna think she won the lottery and will spend all the "left overs".. I keep telling her, she MUST put some of that away. I told her she couldn't get another card for 6 years. (I know she can, but she doesn't know that).

[ndbigler]

Thats kind of what we did... we bought a '73 truck for $600. It's a piece of work, lol, but it gets us places. We only use it when we HAVE to b/c it gets something like 8-10 mpg in gas. It SUCKS! It's had a few repairs done on it, but us, but all in all, its alright. We're saving now for a better car since we surrendured our nice one. The PRACTICAL one.

[Whittio]

It's so dang hard, because we are a generation of "instant gratification" type people. And with all the "buy now/pay later" stuff out there, we CAN have instant gratification. But it's hard to see the future beyond what we want now. Being debt free is such a wonderful blessing! Be smart, don't start credit again!

[originalhealer]

You are giving great advice...I just don't want to be on the bus, I'm really serious, it is very difficult. The car thing, I would like to buy something used...but I have just bad luck with cars...this is my fifth car, and every car I have ever owned, even the two I paid cash for, ended up needing over $1,000.00 worth of work on them, in some cases almost as soon as I had bought it! This car is going to need some work, but at least right now it still runs, unlike some of the other cars I've had.

I am against reaffirming, but like I said, if I have to reaffirm, maybe I could get them to re-negotiate a lower interest rate. Or, maybe I could stall them for a few more months until I am able to get something better.

But likely, I am not going to be able to save $2500.00 right away, because I just don't make enough money to do that right away. To me, the best scenario is to stall them for a few more months while I keep making the payments.

I was told that even if I sign a reaffirmation agreement, I have 60 days to get out of it, is that correct?

[originalhealer]

Yeah, according to NOLO, in Chapter 7/12, it says: "You can cancel a reaffirmation agreement by notifying the creditor before either of the following, whichever occurs later: *the date of your discharge, or *60 days after you filed the reaffirmation agreement with the bankruptcy court (this often happens at the discharge hearing). If your case is already closed, however, you will not be able to switch to the other options listed in this chapter."

Maybe, I could get a part-time job. 20 hours per week x 9.00 per hour equals 180.00 per week, x .75 equals 135.00 per week x 4 weeks equals 540.00 per month.

So, working part-time for about five months would net me about 2700.00 to buy a car. My BK will probably not be discharged until at least October, since I just filed July 20. So, if I could drag the whole thing out until January, which means if I start now, I could sign the reaffirmation in October if I have to, then cancel in December. Then, maybe if I am able to save additional money from my day job I could reach my goal more quickly. What do you think?

[Whittio]

I personally wouldn't pay all that you owe on that car that needs work. It's senseless to continue to make payments for years on a car that's vertually worthless.

I also think if you do buy an older used car, stick with Toyota or Honda. American cars just don't typically go as long and hard as a Toyota/Honda. I have had 2 Fords that were JUNK, and 3 Toyota's that were really good to me, even though I didn't take care of them, and I had 1 Mazda MPV that was pretty darn good too. Now I am in a Honda Odyssey. Out of all the cars I have ever owned, only 2 of them were brand new at the time of purchase. (one of the Toyota's and the Odyssey) and I would never buy a new or used American car. Of course, this is all my personal opinion based on my experience. I am sure others may have different opinions too.

I don't know anything about the reaffirmation or even affirmation. I haven't needed to research it, so I don't really understand it. My point is, if you are still going to have to pay $9000 off on this car that needs work, I think your money would be better spent on something else.

We all have to do things we don't "want" to do. You're looking at the down side to all this, what about the upside. That being that you won't owe on a broken down car that is worthless.

BK is all about a "fresh start". I think for you to suffer a few months on the bus in order to have ZERO LOANS, I think the benefits far outweigh the negatives.

[originalhealer]

I take it you are not understanding my last post. As long as I don't reaffirm, or as long as I reaffirm and cancel by the deadline, I am not liable for the balance. I just want to drive the car for a few months while I save up to get a new one. So bascially, I would be renting the car for a few months before I surrender it.

[Whittio]

I think if that's legal, then it would be a good idea. I just don't have any info on the reaffirm stuff, so I don't know what your rights are. But you're saying it would be included in the BK, and the balance paid off then? But didn't you say it needed work? You wouldn't dump money into it right? Is it drivable the way it is for a few months?