question regarding vehicle

[winuare]

I am debating filing bankruptcy. I will be filing Chapter 7 and have a lot of medical bills for my 7 year old little girl who had cancer that is in remission now. My husband and I have decided to seperate. He will not be filing. We live in Oklahoma and the only thing we own together is one car that we purchased in July of this year. The auto is a 2005 Chevy Trailblazer that we owe 26,000 on, blue book maybe 23,000. My question is will I be allowed to keep my car. I do not want it to fall back on him. The payment is 600.60 a month, but I make between 2300 to 2500 a month bring home on my own income and I can make the payment alone. My house payment is only 200.00 a month now as I am renting a home that my parents use as rental. I need to keep my car as I drive from Oklahoma to Dallas and to another hospital 100 miles away for care for my child. This is the only thing I am worried about is them making me give my car back, as it is my only means to get her to the doctor.

Thanks,

Kelly

[HHM]

So long as you can make the payments and you are current and stay current on the payments, you should be able to keep the car.

As for general finacial management going foward, you may want to get into something less costly. You are spending more than 25% of your income just on the car payment, not to mention insurance and fuel costs, your total cost is way to high a percentage of your income to be spending on a vehicle.

However, because you are filing BK, you are probably stuck anyway, because you would have a hard time qualifying for a purchase of another car on credit.

[Whittio]

So sorry about your daughter, glad she's in remission! That must be horrific to deal with on top of your separation, and now BK!

I know this might be a silly question, but will her expenses allow for a $600 payment on a car? As in, won't they think that's too high? To me, that would be like listing food for $1000? Does that make since?

Also, you want to be sure your expenses come within $100 of your monthly income. I assume with all your medical bills, it should. But just your rent and car payment only come to $800, and out of a possible $2500 a month, you need to make sure you are spending at least $2400 a month.

[HHM]

I don't think she will have any trouble getting her expenses to meet or exceed her income, but for this bankruptcy to do any good for you, you need to get your financial life in order, get a divorce (if that is inevitable), get the child support. Otherwise, you're going to find yourself deep back in debt within a year or two, and then you won't have bankruptcy as an option.

Granted, your housing is cheap because you live with your family, but that may not last forever, and you may want to consider moving closer the the hospital. (when you factor in fuel costs (I would guest it probably costs you around $40 per fill up), it might make more sense to rent a cheaper place closer to the hospitals and get a job in that area.

Your in a difficult situation, but I think you should seriously consider getting a cheaper car before filing BK (even if you have to finance negative equity), fore example, you could probably get something like a PT Cruiser, and even financing the negative equity from your car, you'd probably cut your payment in half.

Finally, if divorce is inevitable, get the divorce started.