CH 7! can I keep my car?

[SlimChriz]

Hi Ive been reading through this forum, and I found alot of useful info but theres one area I couldnt find a clear answer for myself.

OK Ill give a little background... I have about $5-6K in CC debt I have a car loan that I owe about $4K Im am current with the car loan and need to keep this car because I travel alot and I just spent $1500 in parts and did the equivelant of $2000 worth of labor to it... its a 97 so its not used but Ive taken excellent care of it so its in new condition... Ill add that I love this car more than a man should love a car.

My credit cards are what have me in trouble I started with one card in great standing and had it mostly paid off... then I decided to go to college and soon racked up a few grand in cc debt I tried transfering the ballance another card but at the last minute they change the amount of my credit line and only transfered half of it... Long story short Im still a student and now I have about three credit cards all with high interest (+20%) that I was keeping current with until I just moved back east from the midwest. Now Im really falling behind and I need to get back to shcool.

If I file ch7 will I be able to keep my car? can I just keep paying for the car and file for the CCs?

sorry this is so long and thanks for your replys...

[Dawn1970]

I love this car more than a man should love a car.

LOL Sorry, had to have myself a chuckle over that. You can file CH 7 and get everything else discharged but reaffirm on the car loan. Especially since you're current on the car payments. Depending on what state you live in, you'll probably have to show proof of insurance on the car.

[SlimChriz]

Thanks Dawn, Im in MA. How much should I espect a layer to ask for filing for me? any rough estimates?

Yeah some would say Im obsessed with my car, But I look at it as a hobby and something I can do to "get away" wheather its working on it or taking it to an autocross/track...

[robivi3]

It is not worth filing for 5000.00 - 6000.00 in debt. Your life may be quite different in several years and the damage of a BK lasts along time. Please think twice about it. Try to pay your cards, bad credit when you are young can be very damaging.

It is different when you are in your forties and have some assets but you are at an age when you start thinking of buying a home and building a property portfolio. I did well when i was young but BK'd due to bad business decisions later on. The difference is that I have some property that could not be touched in the BK. So even though I have the blemish it did not wipe out my hard assets and i can still attain more later (but at higher interest) because i have built up equity

Please do not file lightly. It will affect decisions that you will need to make in your thirties and thus will affect your forties and fifties. Time goes by fast, I was twenty three-in-love with money-the-bank and driving brand new PAID FOR Cars yesterday!

I can remember back in 84' I decided to by a new Ford Escort. I remember that my wife and I saved $6000.00 in four months and paid $7900.00 for the car new. The same deal with my Mighty Max Pickup two years later. What a different world!

Not to preach but just passing on some advice.

[SlimChriz]

Thanks Robivi for the advice... Ive been trying for the last two years to pay them off but the truth is I dont make enough and the interest keeps rising and so does the balances. I was in debt about $15K but I paid it down now its rising faster that I can keep up with I dont want to wait till the balace reaches a point where it would be worth filing for. Believe me I dont want to file... Ive been trying to pay them off sometimes I dont eat because I cant afford to pay my CC bills other times I opt for food. Its not like I have someone to bail me out here. I have no parents no one willing to lend money to me. I cant pay the bills and afford to live so I can either stop paying them which unfortunately does not make them go away or I can pay them and live on the streets.

Not trying to give a sob story here but You assume I take my decisions lightly because Im 23, but Ive lived a long 23 years and I take no decision lightly... But I also know enough not to turn down good advice so I ask you what should I do or what would you do?

[HRx]

What's your Debt to Income Ratio?

[SlimChriz]

I make about 510 a month and need to pay out 450 a month without rent food or other stuff. That why I cant pay any CC bills right now.

I did have two jobs before I moved but I only have one now and Im looking for another but chances are when I get another job I will just be making it especialy after I have to make up for the missed payments and charges. Im suposed to start back to shcool in march so I will only be able to have one job.

I guess thats a 4.5 to 5 debt to income ratio