How to decide?

[tedrow]

I'm currently laid off and my husband is just starting a new job. We are/were 2 years in our chapter 13 and got behind on our payments when I got laid off. The chapter 13 will be dismissed on 8/19 because our payments are behind. We are then going to turn around and refile another 13 or a chapter 7 on 8/20. How do you decide which is the right way to go? My husband always says whatever I decide is fine with him. Since I pay all the bills and so forth. But, I just don't have a clue.

We currently owe about 2000.00 in back taxes to the IRS and have a 2004 Malibu that is on the BK. My concern is if we file another 13 we will be unable to get another car in the event the malibu breaks down and we can't afford the repair cost in the 48 months while we are paying the BK off. The car has 85,000 miles on it and has some issue with the power steering that I'm told will cost around 1000.00 to fix. The transmission feels like it maybe starting to slip. If it wasn't for the issues with the car then this would be a no-brainer. But, since the car is already having issues I'm scared to keep it but at the same time I'm scared to let it go since there is no telling if we will be able to get anything else. And with a 5 month old I have to have a reliable vehicle. So any idea what I should do? I'm really at a loss and I have to make a decision by next Thursday when we meet with the atty to re-file. Any insight would be great. Sometimes you need someone from the outside looking in to help.

Tracy

[Chowder]

Are you concerned about losing that car in a chapter 7?

From your description, it will probably not be taken by a trustee.

[tedrow]

Are you concerned about losing that car in a chapter 7?

From your description, it will probably not be taken by a trustee.

Yes we will have to surrender it since it's included in our chapter 13 and we are behind on it. The company that has it financed wants around 3500.00 to reaffirm it. And since we are not current we can't do a ride through.

[Chowder]

A couple of things come to mind.
First is, that car would play a very insignificant roll in my decision to file or switch to a 7.
And the other is, sounds like the car is not worth anywhere near what it would cost to keep.

[LSUTiger32]

I am confused, you want a reliable car but you are worried about keeping a 2004 with at minimum $1,000 worth of needed repairs and a possible transmission issue?

I am not sure of your other issues, but with the loss of income I would think you would qualify for a 7 now. I would file the 7, give back the hunk of junk and get you a reliable beater. I found one for $2,500.

Good luck no matter what you do!

[aces67]

You actually probably qualify for Ch 7 right now and you can probably convert your current 13 rather than letting it dismiss and then refiling.

That car really doesn't like it's worth keeping.

[tedrow]

You actually probably qualify for Ch 7 right now and you can probably convert your current 13 rather than letting it dismiss and then refiling.

That car really doesn't like it's worth keeping.

Yes we qualify for a chapter 7 without a doubt. My atty said that we could file a 7 and give the car back then try to get something else once the 7 is discharged. Or we could file another 13 to lower our payments and keep the car. I'm concerned that if we keep this car its going to tear up and I will be stuck with it and no car But, on the same hand I'm scared to give the car back because I'm worried I won't be able to find a reliable car that won't cost a fortune.

[music12]

why let them dismiss the ch13?? didn't you tell your lawyer when you got laid off that you won't be able to make payments and that they should re-evaluate the payments?

[StartingOver08]

Did you ask your attorney to convert your current Ch 13 case to a Ch 7?

If not, ask him now. If you refile, don't you have filing fees to pay and more attorney fees? I don't understand the statment by your attorney: "...try to get something else once the 7 is discharged". Once your Ch 7 is discharged you are in fine shape! The only thing you would need to take care of is the $2000 in back taxes to the IRS. That you handle by making an installment agreement directly with the IRS.

Surrender the car in your Ch 7 case. Once you file a Ch 7 and get discharged, then you can go get a 'beater car' until you can afford something else. Your 5 mth old will not know the difference between a beater and a new car. You need to do what is right for you to get back on your feet.

[tedrow]

why let them dismiss the ch13?? didn't you tell your lawyer when you got laid off that you won't be able to make payments and that they should re-evaluate the payments?

Yes I told them as soon as I got laid off but until I was out of work for 6 months we would have still been over income. So, now that has taken place we got a motion to dismiss. We were originally planning on refiling the 13 and lowering the payment but now the closer it gets I'm thinking of just doing the 7. I just tried calling the atty and they are gone for the day. So I'm going to call them tomorrow about converting.

[tedrow]

Did you ask your attorney to convert your current Ch 13 case to a Ch 7?

If not, ask him now. If you refile, don't you have filing fees to pay and more attorney fees? I don't understand the statment by your attorney: "...try to get something else once the 7 is discharged". Once your Ch 7 is discharged you are in fine shape! The only thing you would need to take care of is the $2000 in back taxes to the IRS. That you handle by making an installment agreement directly with the IRS.

Surrender the car in your Ch 7 case. Once you file a Ch 7 and get discharged, then you can go get a 'beater car' until you can afford something else. Your 5 mth old will not know the difference between a beater and a new car. You need to do what is right for you to get back on your feet.

I'm not worried about driving a beater. But my concern is we don't have any money in savings so it will be hard to come up with the money to buy something if its more than a 1000.00. I just won't something reliable. I don't want to be stuck on the side of the road while my husband is away. He drives OTR. So I'm alone a couple weeks at a time.

[music12]

Yes I told them as soon as I got laid off but until I was out of work for 6 months we would have still been over income. So, now that has taken place we got a motion to dismiss. We were originally planning on refiling the 13 and lowering the payment but now the closer it gets I'm thinking of just doing the 7. I just tried calling the atty and they are gone for the day. So I'm going to call them tomorrow about converting.

this is very confusing. just because you wouldn't have qualified for a ch7 right when you got laid off does not mean you were able to make the ch13 payments. the lawyer should have made an effort to revise your monthly payments to fit the income you were currently getting. you wouldn't have to refile the ch13 just to lower the payments due to changed circumstances.

[tedrow]

this is very confusing. just because you wouldn't have qualified for a ch7 right when you got laid off does not mean you were able to make the ch13 payments. the lawyer should have made an effort to revise your monthly payments to fit the income you were currently getting. you wouldn't have to refile the ch13 just to lower the payments due to changed circumstances.

Yes I know....it didn't make any sense to me. I found out just a few weeks ago that the paralegal was the one doing everything...and she wasn't doing her job. She hadn't even discussed our case with the atty...even though she said she was. She never told me they were going to put a "hold" on my payments for 3 months until I got the letter from the trustee. But, since the atty found out that paralegal no longer works there and we are only having to pay a few hundred to re-file instead of 1000.00. For some reason when the hold was lifted after the 3 months my payment increased another 300.00 per month. I guess because we were behind...IDK.

[debtmonster]

My concern is if we file another 13 we will be unable to get another car in the event the malibu breaks down and we can't afford the repair cost in the 48 months while we are paying the BK off. The car has 85,000 miles on it and has some issue with the power steering that I'm told will cost around 1000.00 to fix. The transmission feels like it maybe starting to slip. If it wasn't for the issues with the car then this would be a no-brainer.

Now you see why I always push for people to use Amsoil. If you start with this stuff in the car when it's new, you won't have problems with the transmission slipping.

Now it will cost more to fix the transmission than what it would have cost to use the Amsoil.

My car only has 76,000 miles and is a 2007 and my attorney said to give it back and not waste my time.

My car runs like brand spanking new. I put Amsoil in the transmission early when the car was new. I knew a day like would also come for me when I could not afford to spend $2,000 on a new tranny... especially on a car that's only worth barely $3,000 to $4,000 to start with. That's how the car manufacturers get you. They make the cars so that you don't want them. This is also why I am so scared to buy a used car because everybody refuses to put Amsoil in them from the start. So now I am stuck buying brand new cars all the time so that way I can put 300,000 trouble-free miles on them (other than replacing water pumps, alternators and fixing the A/C when the compressor goes out.)

I'm always wrong. Nobody will listen to me and my scams. Oh well. Sorry.

[OhioFiler]

Now you see why I always push for people to use Amsoil. If you start with this stuff in the car when it's new, you won't have problems with the transmission slipping.

Now it will cost more to fix the transmission than what it would have cost to use the Amsoil.

My car only has 76,000 miles and is a 2007 and my attorney said to give it back and not waste my time.

My car runs like brand spanking new. I put Amsoil in the transmission early when the car was new. I knew a day like would also come for me when I could not afford to spend $2,000 on a new tranny... especially on a car that's only worth barely $3,000 to $4,000 to start with. That's how the car manufacturers get you. They make the cars so that you don't want them. This is also why I am so scared to buy a used car because everybody refuses to put Amsoil in them from the start. So now I am stuck buying brand new cars all the time so that way I can put 300,000 trouble-free miles on them (other than replacing water pumps, alternators and fixing the A/C when the compressor goes out.)

I'm always wrong. Nobody will listen to me and my scams. Oh well. Sorry.

If Amsoil is a magic elixer have you tried using it as a weight loss supplement?