Is there ANY way to keep my $14K car w/$3K car exemption?

[FilingOnMyOwn]

You obviously completely misunderstood the intention of my post, but it obviously struck the cord that I was hoping. I suggest you re-read it if you wish to understand my intent. Or continue to be righteous and offended, I don't care.

I'm glad I chose not to follow a similar course of action that you might have followed. My "dying" animal is now swimming daily and leading a happy, healthy life. How is it humane to euthanize an animal that has an excellent prognosis given the proper treatment? Is it humane to conveniently put down an animal because you cannot hold up your end of the bargain in caring for it? Actually, do not bother answering. We obviously have VERY different opinions on this matter and you are not going to change my mind as I am not going to change yours.

And, it's beside the point. This subject has absolutely nothing to do with the question I posted.

Its ok, you're entitled to your own opinion and lifestyle. I view you much more highly than most of society. However, my point still remains, that animals are not people... There are human beings on this earth that are discarded on a daily basis in 3rd world countries, not even given the chance that your own pets were given through medical treatment. Ultimately, my own personal goal if I were to become wealthy would be to dedicate my life to philanthropy, such as bill gates has done. But even if I were that wealthy, I would perhaps question the effectiveness of spending 10k on an animal, if I could save dozens of animals, or even save people with that same money. But like you said, to each his/her own...

Regardless, this is about BK as you suggested. I know this thread has gotten way off topic. I guess my question for you at this point would be: Even if you file bk to have only 25-30% of your debt discharged, could you even afford to make the minimum payments on your debt that is not dischargeable (student loans), rendering the entire BK ineffective in any positive way? Not trying to be rude at all, just realistic. Maybe selling your car, buying a decent one for 3-4k, and using the proceeds in the meantime to get yourself 'unburnt' out, might buy you some time towards finding a real solution to your financial worries.

[anonymuse]

Let's not criticize this person for his decisions about caring for his pets--this is a personal decision. Some people have much worse debt from gambling or other vices.

Let's just consider debt as debt and provide this person with useful advice instead of criticizing his choices.

[GoingDown]

I have a 2002 car that has a blue book value of at least $14K. The car is paid off with a clean title. I have $75K in CC debt and over $200K in student loans. I know the student loans cannot be discharged and am at the point where I have to do a Chapter 7 or a debt settlement, but the debt settlement amounts are more than I can afford. I do not want to lose the car because I have two elderly dogs and just a month ago I had to drive one back and forth for vet hospitalization which ended up costing me $10K in vet bills (that was the straw that broke the debtors back and now I MUST do something). I really need to keep it in order to transport them.

My state only allows for a $3K auto exemption. NO wild card. It seems that many of you have lots of good advice here. Is there ANY possible way I can keep my care while filing Chapter 7? Is it possible to have something set up where I make payments to keep it? Anyone know? I'm desparate.

Maybe downsize to a cheaper vehicle-- one worth less than the $3000 exemption. Sell off the $14000 vechicle to pay for one that is within the exemption amount. And make sure you keep records of how much you sold it for and to whom -- make sure the buyer signs a bill of sale, in case the trustee asks about it during BK. And try to put a little bit of time between the sale of that asset and the date when you file for BK. The trustee may still want that money above and beyond the $3000 exemption, but at least you will have a car you can continue to drive through the long winding road of bankruptcy proceedings.

[GoingDown]

Usually NOT. I've read some cases of people with serious disabilities that can't even get them discharged. This is extremely extremely difficult to do--and possibly a waste of money.

Most districts use the Brunner test to evaluate the dischargeability of the debt.

The three-part Brunner test required the debtor to prove:

1) That the debtor cannot maintain, based on current income and expenses, a minimal standard of living if forced to repay the student loans;

2) That additional circumstances exist indicating that this state of affairs is likely to persist for a significant portion of the repayment period of the student loans; and

3) The debtor has made good faith efforts to repay the loans.

Under the Brunner analysis, if the court finds against the debtor on any of the three parts, the inquiry ends and the student loan is not dischargeable.

I read of a case where a mother had serious MS, divorced, and cared for the two children. She passed 1 & 2; but since she had only been making minimum payments it was not considered enough for good faith payments--thus she was discharged.

See this post for other ways courts handle it:

http://www.bankruptcyforum.com/showthread.php?t=7698

To BluFlax: If you can't get the student loans discharged, then you should consider getting a "Direct Consolidation Loan" with "Income Contingent Repayment (ICR)" from the U.S. Department of Education. That way you will only have to pay a certain percentage of your income, based upon your federal income tax returns. If your AGI is at or below the poverty limit, then your monthly payment will be ZERO dollars per month. After 25 years of ICR, no matter how much is left on your loans, the entire amount is forgiven.

It won't make your student loan debt magically disappear overnight, but at least it will be something you can live with.

http://www.loanconsolidation.ed.gov/borrower/borrower.shtml