Drowning In Debt - Need Help

[BBW]

Buying/leasing a brand new $30-35k car right before filing bankruptcy? Not a good move. You can't have your cake and eat it too.

Agreed. I think I'm going to just have my parents sign a loan or lease after I file. I'll decide then what I can afford based on lease rates. I don't know what trustees look at but a $35k maxima is currently leasing better than a $25k accord thus making the maxima cheaper per month. But in any case. I'll file in a few weeks/months and drive my car for a month or two after that without making the payment and see what I can afford.

[hereforinfo]

I completely agree. I'm considering leasing an 09 maxima which would save me about $25per month towards my payment and $25per month in gas. And it won't need the $3000 in service my current car needs. I just question if that would be good enough for a trustee. While I do really really want a 5 series which is similar to my current car I wouldn't even dream of it at this point, I am willing to down grade. I have to. But I don't want something smaller, slower, less options, less reliable, less safe, etc. I'd like to give up the least amount of those things as possible. I think a maxima would allow me to retain most of those while saving a little money. I know I'm being a baby and should just buy a used civic. I used to have one it was a great car.

Buying/leasing a brand new $30-35k car right before filing bankruptcy? Not a good move. You can't have your cake and eat it too.

[BBW]

Just keep in mind it will not look good if you go out and purchase a luxury car on the eve of filing bk. If you at least get a modest car and the trustee asks you why did you purchase a car, you can say the current car was dying. If you put down a new BMW 5 series or Cadillac, you may have problems.

I completely agree. I'm considering leasing an 09 maxima which would save me about $25per month towards my payment and $25per month in gas. And it won't need the $3000 in service my current car needs. I just question if that would be good enough for a trustee. While I do really really want a 5 series which is similar to my current car I wouldn't even dream of it at this point, I am willing to down grade. I have to. But I don't want something smaller, slower, less options, less reliable, less safe, etc. I'd like to give up the least amount of those things as possible. I think a maxima would allow me to retain most of those while saving a little money. I know I'm being a baby and should just buy a used civic. I used to have one it was a great car.

[shabam]

I agree now is the time to think about the car, which is why I'm most worried about it. I do agree buying is better than leasing but I'm having a very hard time downgrading. I realize I have to and am willing to but I don't want to downgrade every aspect of it. I don't know... the fancy car is the one thing I haven't been able to let go. No more credit cards, no more excess spending, no more dining out, and no more money period are all things I've accepted and moved on from. I should mention that cars are my "thing". They are my drug of choice. And I haven't kicked the habit yet.

Just keep in mind it will not look good if you go out and purchase a luxury car on the eve of filing bk. If you at least get a modest car and the trustee asks you why did you purchase a car, you can say the current car was dying. If you put down a new BMW 5 series or Cadillac, you may have problems.

[BBW]

you are probably right that she could go back to court, but i think the judge would have to find that she was completely being ripped off, or that you really took advantage of her to the detrement of your kid. i still pay much more than her overall, clothes, school lunch, insurance, etc...

That sounds about right. Oh it burns me up... I love my daughter and have no problem supporting her and taking care of her. But the thought that I have her more time just so her mother can work more, yet I pay her mother. I get really annoyed when it's that time of the month. If you know what I mean.

[BBW]

Immediately stop using the cards and possibly even paying them and put some time behind you. There is no maximum lookback period. If you made large transactions or cash advances 5 or 6 months ago, they can still come after you.

You need to ask yourself:
When and how did you accrue the debt?
What is within the last 3 months, 6 months or 12 months?
How many payments have you made since any large transactions?

The more time you put between any transactions and filing, the better for you. At first I thought I would file as soon as I defaulted. Luckily I did some research and noticed on here that I could hold out for a few months and stop paying, which I did.

Before your credit score falls, I would seriously consider your vehicle options. Now may be a good time to lock in some great finance rates. Then just stop paying on the car you are going to give back. Obviously do not use the same lender you will be defaulting on.

Thanks for the input. I have stopped using all of my cards over the last 1-3 months. My last large transactions (over 500) were may/june. My debt was mainly accrued in the last 3-4 yrs so I'm not worried about that.

I agree now is the time to think about the car, which is why I'm most worried about it. I do agree buying is better than leasing but I'm having a very hard time downgrading. I realize I have to and am willing to but I don't want to downgrade every aspect of it. I don't know... the fancy car is the one thing I haven't been able to let go. No more credit cards, no more excess spending, no more dining out, and no more money period are all things I've accepted and moved on from. I should mention that cars are my "thing". They are my drug of choice. And I haven't kicked the habit yet.

[shabam]

MOST IMPORTANT QUESTION. When is the soonest I can file based on what I mentioned in my first post. 2 weeks since I made a preference payment. 1 month since I stopped using my cards. 3 months since last luxury purchase.
Thanks.

Immediately stop using the cards and possibly even paying them and put some time behind you. There is no maximum lookback period. If you made large transactions or cash advances 5 or 6 months ago, they can still come after you.

You need to ask yourself:
When and how did you accrue the debt?
What is within the last 3 months, 6 months or 12 months?
How many payments have you made since any large transactions?

The more time you put between any transactions and filing, the better for you. At first I thought I would file as soon as I defaulted. Luckily I did some research and noticed on here that I could hold out for a few months and stop paying, which I did.

Before your credit score falls, I would seriously consider your vehicle options. Now may be a good time to lock in some great finance rates. Then just stop paying on the car you are going to give back. Obviously do not use the same lender you will be defaulting on.

[shabam]

Thanks for the replies.
When I say get rid of my car, I mean get rid of it in the bankruptcy not prior. I have considered getting a replacement car before filing but I'm not sure if I want to put it in my name or my parents. Or try to just drive my current car for 3-4 months after filing but before discharge if they don't repo it.

If you buy or lease a car under your name, you at least get to claim it as an expense, which will work to your advantage. I would personally stop paying on the current car and go buy or lease a reasonable car. Preferably buy as leasing is a waste of money.

[MrSmithster]

you are probably right that she could go back to court, but i think the judge would have to find that she was completely being ripped off, or that you really took advantage of her to the detrement of your kid. i still pay much more than her overall, clothes, school lunch, insurance, etc...

[MrSmithster]

I have a notarized agreement as well. But my attorney tells me if she takes me to court or I take her to court the judge can throw out our agreement and create a new one that the judge feels is in the best interest of the child. In which case couldn't you end up possibly paying support again for the next 9 years (maybe minus the 14k)?

i dont think so i my state. i went a lawyer for advise also. the agreement she signed states neither of us can ever pursue any claims against the other with regards to child support payments/alimoney, unless some new future development like medical or some such unusual circumstance arises, and then it only would only apply for him.

no but I was wondering how you had 14k in cash prior to filing, and how the trustee didn't notice it.

i payed her bills using my cc online over many months, at the same time i consolidated some other cc's, then waited over 6 months. know one asked. it was the only way i was ever going to make as my salary was cut by 1/3 and i had approx 6 mos. notice till decrease. my ex also makes less than me, and as my kids depends on mostly, it was all the more important to escape completely debt free. now that she is debt free, she is much nicer/happier and we actually get along real well now. 2 birds with 1 stone thing.

[BBW]

was it clear that i used a cc to pay her? if not, i did

no but I was wondering how you had 14k in cash prior to filing, and how the trustee didn't notice it.

[BBW]

I have a notarized agreement as well. But my attorney tells me if she takes me to court or I take her to court the judge can throw out our agreement and create a new one that the judge feels is in the best interest of the child. In which case couldn't you end up possibly paying support again for the next 9 years (maybe minus the 14k)?

Our agreement is I pay her $520 until next sept then it will go to $260. But it's driving my crazy just because I make twice what she does, why should I pay her when I have more debt and expenses and on the verge ok bk anyway???

Congrats on your recent discharge too.

[MrSmithster]

was it clear that i used a cc to pay her? if not, i did

[MrSmithster]

yep, sure did. but i have less then a yr to go paying her(my son is 12). when i knew i had to file in the future, one of things i did was make her a deal. i knew she was in debt also. i paid all her debt off ($14k) and she agreed to only take 12 more months of support(yes, i have that notarized). that way i got her off my back forever(well, soon anyway) and could also use the support payments in my BK. and now after my discharge(just 10 days ago), i now have a true fresh start. i know this might not be completely honest, but was legal. and after what the cc companys are doing to us, i just really didnt care about their interests any longer and concentrated on mine.

[BBW]

i was in a similar situation and claimed my son(2 person family), but he actually lives with me more than half the time(although i pay her $500 a month). if you are claiming her, yet she is not living with you more than half the time, you really cant legally claim her. so, if you then use her in you BK, i dont think that would be legal either, but thats up to you.

Technically she spends more hours per week with me. Her mother has her during the day and I have her nights while her mother works. I have her +14hrs a day 6 days a week. So I guess thats about half or more.

Does it piss you off that you "share" him, and have him most of the time. Yet you pay his mother? It pisses me off. Especially since I am on this forum and if I wasn't paying his mother perhaps I wouldn't have to be.