FL Car Question

[AMISLANDER]

My mother has been talking with my BK attorney. After he found out that she would help me, he tried to tell her that I should file a 13 instead of a 7 and she can pay $200/mo. for the next year and after that something about converting and making a lum sum payoff. I owe $50K in cc debt. I own a 2000 Toyota 4Runner with 90K miles...that's my only asset. I figure at the carmax site it's worth around $6,500...as it needs new catalytic converters and some minor hose work. I plan to file the 7 after the first of October. I only take home $1,500/mo....you know how FL pays. I do not have any leftover $ after my bills are paid. I know I get $1K worth of car. If I take the truck to carmax and walk out with cash, go get something like say a '96 mustang...don't put much down (my mom will help with the payments till I get back on my feet. I think it's better than making my mom pay on my stupidity, keeping a truck that needs $3,500 worth of work plus the $190 a month they would want me to pay is like a car payment....help....I want to file the 7 cause I think it makes more sense?

[AMISLANDER]

P.s...

I know I'll have to give up what I don't spend from the $ I get from selling the car!

[Minera]

I would go with the Chapter 7, don't let your mom pay for your mistakes.

[FloridaGirl]

Consult another attorney. The one who spoke to your mom seems to have misled her. First of all, if you opt to make a lump sum payment to get rid of your ch.13 plan, you will be responsible for paying the full amount back to your creditors. Also, there is no guarantee that you will only have to pay $200 a month into your ch.13 plan. If that is what you have left each month, then yes. But if you have more than that left, you will have to pay that amount. The court wants your disposable income for at least 3 years. So, let's say you pay into your plan for one year. That is $2400. Well, if you choose to get out of the plan early, you would have to pay the creditors the remainder of the original balances, not the balances under the ch.13 plan! That means you would have to pay $47,600 in order to terminate your ch.13 plan early. The ch.13 plan allows you to pay pennies on the dollar, but that is only if you pay into it for the full term.

You absolutley should file a ch.7 and I'm appalled that this attorney tried to make a 13 sound better for you. I know you want to keep your car, but if you can get financed for a better one, and your mom will help you make the payment, then this is the way for you to go. Having the car payment on your ch.7 petition will only be a help to you anyway because it is an extra expense. Man, a ch.13???? I'm stilll shocked. You know, for one thing, the court won't even look at your mom's income because that has nothing to do with you. It is you who is filing and the court will see clear as glass that you can't pay into a ch.13 plan. You have no disposable income, so they wouldn't even approve it!

Seems to me like this attorney was just trying to get the extra few hundred dollars he charges to file a 13 as opposed to a 7. Consult another attorney and keep your mom out of it if you can. If she is willing to help, then have her help you get better vehicle. File a 7....it is definitely better for your circumstances.

[StaciMM]

Having a reliable vehicle seems like a reasonable exchange. From what I understand, trading in your paid-for vehicle and taking on a reasonable car payment shouldn't be a problem.

[sunshine08]

I agree. I was reading the post thinking, why are you even talking about a chapter 13. I highly siggest talking to a couple of attorneys, I see a magic act, he is gonna make your money disappear in his pocket.
Keep us posted.

[bezoar]

Some atty's will attempt to move people to a 13 when it is not really necessary in that they can charge more (according to my att'y). I think your atty's advice is poor. Do anything you can to stick with the ch 7. You don't appear to have the excess income to fund a ch 13 - and I'd never try to do it just to save a car.

[sunshine08]

I have been thinkingalot about your post and i do know a couple people that have filed for bankruptcy and went the chapter 13 and when we compared notes about the cases we came to the conclusion that the they would have been able to get a chapter 7, even if they only had to wait a couple of months to file. I also discussed that with my attorney at the free consultation about that. I discussed the ramifications both positive and negative about filing bankruptcy with those other people because i knew that they had filed within the last 2-4 years and how they were dealing with all the ramifications. In fact one of them looked into the possibility of converting his chapter 13 to a chapter 7, but he only had about 4 more payments and it wasn't worth the hassle to him. He told me that the main reason he did 13 was because the attorney's fees could be included, he wanted to stop all the creditors calling (he is very impatient) and chapter 7 wasn't really mentioned to him as an option. I am done with my case and he still has a couple more months to go and he has been dealing with this for almost 3 years. He could have waited, go his information together, saved his money for a couple months to pay the attorney, ignored or put up with the creditors phone number and had all this behind him 2 years ago at the very minimum.
I know you don't have long to decide, but again, talk to other attorneys because I don't have a good feeling about that one's advice.
good luck, keep us posted.

[AMISLANDER]

Thank you all so much!

I've already paid this attorney $1,800 which was the fee for the 13...but he said he pulled it before it went through in Tampa. Yes, I too think he saw $$ coming out of my mom and I talked to her, she got validation from another person on the matter who filed a 7. I pay $700/rent, $275 child support, $290 on my car insurance (previous DUI 3 years ago) and hoping to drop the car insurance lower next month as it's my anniversary date & I'm going to be switching vehicles. If you add those figures up, I'm at $1,265 and I bring home $1,510/month...hmmm, eh? My boyfriend was helping with bills but he's in the middle of switching jobs so at this point, I had to ask my mom to help and I'm freaked out and actually flat broke...

I went looking for the car of my dreams, an '89 Mitsubishi Starion, which I used to drive before I had my children. Actually found one advertised on line and am going to look at it this weekend. They're asking $2,900 for it. If I have to drive an older, cheaper car, this is the one. I'm still going to Carmax on the way to see the car to get a payoff on mine. I'm thinking I might also have the option of trading my SUV for the Starion and then still getting cash back from the dealer I'm buying from...I'm a bit terrified of trading the SUV for the unknown but I'm at the end of my rope and stressing bad.

I that this is the time to do the car switch, before I file my paperwork. Am I thinking rationally guys???

I'm going to have to call this attorney and set him straight. He told my mom he wasn't refunding any of the money I've already paid so I figure at $250/hr...the difference between $750 for a 7 and what I paid at $1,800 gives me the right to ask a million questions...I already paid the SOB.

Any thoughts? Thank you in advance