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My personal struggle with morality, pride and shame...

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    #16
    Originally posted by shipo View Post
    The sooner you stop paying on your unsecured debt, the sooner you'll have the money for your attorney. Said another way, keep current on your car(s) and mortgage(s), and stop paying everything else.
    I have never missed a payment on the house or car and will continue to keep that up. As a matter of fact, we have five more payments on the one car we are paying for. The other car is completely paid for and old (but still runs well).

    I still don't have any idea how I can stop the payment of the auto-pay for that consolidation loan. I assume a lawyer could figure that out in the process. I would prefer to NOT open a new account and leave the one they try to pull from empty and/or closed.

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      #17
      At our location, Pokemon Go is actually used as an exercise tool. It gets people out of the building(s) and walking around. So it does have a therapeutic affect by getting people up and active.
      Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
      Status: (Auto) Discharged and Closed! 5/10
      Visit My BKForum Blog: justbroke's Blog

      I am not an attorney. Any advice provided is not legal advice.

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        #18
        Originally posted by justbroke View Post
        At our location, Pokemon Go is actually used as an exercise tool. It gets people out of the building(s) and walking around. So it does have a therapeutic affect by getting people up and active.
        It plays a multi-facet role for me. I sometimes wonder if I would have gambled my way out of debt (like I have done a bunch of times with gambling debt) if I didn't start playing PoGo. However this is a question I will never have an answer to as I have zero interest in placing a bet ever again. If I had to make a guess, though, I have a strong inclination that I would have.

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          #19
          Originally posted by CorkScrewIt View Post

          I have never missed a payment on the house or car and will continue to keep that up. As a matter of fact, we have five more payments on the one car we are paying for. The other car is completely paid for and old (but still runs well).
          Hmmm, cars are definitely an issue in a 5-year Chapter 13; I entered mine with an old, but well maintained and very serviceable car, in spite of my attorney's advice to buy a new car before filing. That decision came back to bite me in the hind-parts; in my fourth year of my bankruptcy I needed to wipe out my meager savings plus gut my food budget for a month to buy a new(er) car. Had I followed her advice, I would have bought something uninspired like a Corolla, then had it financed through the bankruptcy as a secured loan; the net result of which is I wouldn't have had the gut-check in year four, and I would have come out of my bankruptcy with a paid-off asset worth over $10,000.

          My bet is your attorney will instruct you to trade your cars in now before you file.
          Latent car nut.

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            #20
            Originally posted by shipo View Post

            Hmmm, cars are definitely an issue in a 5-year Chapter 13; I entered mine with an old, but well maintained and very serviceable car, in spite of my attorney's advice to buy a new car before filing. That decision came back to bite me in the hind-parts; in my fourth year of my bankruptcy I needed to wipe out my meager savings plus gut my food budget for a month to buy a new(er) car. Had I followed her advice, I would have bought something uninspired like a Corolla, then had it financed through the bankruptcy as a secured loan; the net result of which is I wouldn't have had the gut-check in year four, and I would have come out of my bankruptcy with a paid-off asset worth over $10,000.

            My bet is your attorney will instruct you to trade your cars in now before you file.
            Really?

            My mind is boggled right now. How would I buy a car with this credit situation anyway? I have to tell you, I am more than confused with such advice. I am sure a lawyer would explain it but "what the what"?

            Don't get me wrong, I get the paid-off "asset" piece but I don't get the rest.

            Furthermore, the paid off vehicle is in my wife's name. She is the technical owner. The other, with five months left, is mine. Does this change the scenario?

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              #21
              flashoflight explained the Dave Ramsey scenario well. I was thinking that, but just blurted out his method wouldn't work. I do think he has some great strategies, but at this point making the move to BK can be the best solution and I understand wanting to pay the creditors back because you always thought you would be able to do that, at least that is how I felt. But I have no guilt about that since we are in 100% payback (even if not all creditors have claimed their money back, that's their call).

              Bankruptcy is public record, but it's not that easy for the average person to find out. When we filed we got junk mail from lawyers and to buy cars and maybe few others. Bankruptcies are listed on a site called PACER and you can search for cases by name or case number. But the average person is never even going to know that site exists, let alone read it. I am glad it's low key. There's enough stigma to deal with from our own feelings. People don't discuss it, don't talk about it.

              As for Pokemon Go, sounds like a good hobby. My young adult daughter's boyfriend got her started on it. They were showing me and she asked if I wanted to do it, then she said "no you don't want to do this because you won't want to stop."

              The attorney can probably tell you what the best way to handle the consolidation loan and stop the automatic payments. If you go into Chapter 7 I think it's recommended to open a new account and even if you go into Chapter 13 it might be recommended if you have an account in a bank where you also are a debtor, this might depend on your state.

              There's lots of great comments/info here. Please update when you see attorneys and let us know what they recommend.

              And remember, as you may have read, if you negotiate with credit card companies or collection agencies there is no guarantee they are going to make a deal with you.

              Comment


                #22
                Originally posted by CorkScrewIt View Post

                Really?

                My mind is boggled right now. How would I buy a car with this credit situation anyway? I have to tell you, I am more than confused with such advice. I am sure a lawyer would explain it but "what the what"?

                Don't get me wrong, I get the paid-off "asset" piece but I don't get the rest.

                Furthermore, the paid off vehicle is in my wife's name. She is the technical owner. The other, with five months left, is mine. Does this change the scenario?
                I know someone who knew chapter 13 bankruptcy was inevitable before his first missed payment aged beyond 30 days. He had already canceled all autopays on his credit cards so the plan was already in motion. Next step was dealing with the car problem. He went to a car dealership to get an auto loan. The lender only saw the maxed out cards but the credit card company did not post the late payment yet in the credit report. The interest rate was quite high at 15%, but in a chapter 13 situation it makes sense if there is a new car warranty still on it and you finance the MANUFACTURER'S (not 3rd party) extended warranty into the loan. His other car was paid off so the lawyer figured the trustee won't object to the super high payment. In a chapter 13, the budget amount allowed for a vehicle is much higher on a financed car and the car needs to survive the 5-year chapter 13 so that warranty will help a lot.

                Other than this narrow exception for a 13, I would follow Dave and never, ever buy a financed car again. With your income level, you sound like a candidate for a 7. You probably don't have any disposable income for a 13.
                Last edited by flashoflight; 10-08-2020, 02:04 PM.

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                  #23
                  The most foolproof way to stop the consolidation loan autopay is close out your account with a zero balance and move elsewhere. I would not trust any debt collector to stop the autopay. Moving the billpay isn't that hard because you're not moving the credit card companies over. You'll want to get a PDF copy of all bank statements before you close the account. If you owe your current bank on any unsecured debt, you'll want to move checking accounts anyway as a precaution since they could offset the funds when you file bankruptcy. Usually you tell the work's direct deposit to go to the new account and once the direct deposit and your debit card shows up, you can proceed with account closure.

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