Arrgh...help me

[mindyandy420]

I have just recieved my paperwork from my lawyer. I told him that I did not want to keep my vehicle. So I stopped making payments last month.
My paperwork shows the vehicle under exemptions. ????
After all my bills my disposable income is -100. but it shows my car $280 car payment in there. So this means I must keep my car to make my disposable income not in the +.
If I give my car back then I have disposable income but if I keep it then I'm -disposable income.

What do I do???

[Tbornetun]

You just stopped making payments, you still have the vehicle. You can use the payments as deductions from your income. You will not be forced to keep it.

[mindyandy420]

are you

saying that I can use the payments as a deduction from my monthly income? Even tho I stopped payments in November? Oh I'm just so frustrated? Since I stopped making the payments then wont they take that out of my monthly deductions? Yes I still have the car.

[mrbsf]

What do I do???

You just stopped making your car payment a month ago, so it is unlikely it will be repo'd before you file. Once you file the stay will stop any attempt to collect and/or repo the vehicle. As long as you have the car (ie. are in possession of the collateral) you can claim the car payment as part of your expenses.

DO NOT reaffirm the auto loan, no matter what the lender requests of you! No one can make you sign it. Then, once the stay is lifted and/or your case is discharged, surrender the car in a "voluntary repossession" and you will not be liable for the difference between the sale price at auction and your loan balance. This course of action allows you to claim the car payment, qualifying you for Ch. 7, and not make another car payment, while ultimately surrendering the car.

[mindyandy420]

oh

thank you. I had filed on November 26th. I will call my lawyer tomorrow and let him know "AGAIN" that I do not want to keep the car. I now know that I can use my car payment on my expenses since I was current until last month. I think I was 6 days late before I filed. Arrgh....I just dont like this whole BK thing.

[mindyandy420]

ok need reassurment

I tried to call my lawyer yesterday and left a message. I have not heard from him yet. I dont want to keep my car. My BK paperwork says that I am reaffirming. I dont want to. Looking at my expenses w/car payment I am -100. If I give back the car in BK then do they take my car expense out? That would put me with disposable income. I had already filed Nov 26th and had stopped my car payment 6 days before that.

[Tbornetun]

Your income and expenses for BK purposes was a snapshot of Nov. 26th, your car wasn't even 30 days late at that point. Even if the attorney put reaffirm on the paperwork, that doesn't mean that you will reaffirm. It will just hold the bank off a little longer on the car. Using the payment helped you and they are not going to come back on you if you don't reaffirm. It does not automatically reaffirm just by checking the box, you would have to actually sign a reaffirmation agreement. You are fine.

[jeb]

MA - as I understand it, the Attorney will put down that you want to reaffirm the car BUT when the lender sends you the paperwork to do so you don't have to sign it.

That would put you in the position that has been pointed out above.

All this is clear as mud as you first start but the more you learn, the better you will like BK. - jb

PS - you might be able to renegotiate the loan and come out with less payments as well - I think this is what they call a 722 but not real clear on that.

[mindyandy420]

Oh boy

Thanks for the reassurement. I just wasnt sure if since I'm giving it back that they would deduct that from my expenses and that would make me have disposable income.