Decision time.....

[manglicmot]

My next payments are due on the 22nd of this month, I either make those payments, or I save the money for attorney fees, there's no more time to vacillate. One payment is for WaMu, $124, and the other is for Capital ONe, 351. I have $900 in a brokerage account and about $600 in my bank. Other payments coming up are my utilities, car, rent and a traffic fine. I've been thinking about what to do when this day came, but now I'm freezing like a deer in the headlights.


I do not want to pick up that phone and start making appointments with bk attornies. I do not want to let my accounts get late and default. I'm sitting here with all my paperwork, creditor statements, bank statements, pay stubs, credit counseling and I don't know what I should do.

Here is my situation: 4 credit cards, 2 personal loans, an auto loan. Total debt is $49826, of which 24730 is my car loan. I want to reaffirm my car loan. My income averaged over last six months is 38060, which is below the median for California.

Somebody please help me make this decision. Am I overlooking anything? Should I wait until I am in default? Should I do it now? I've read over this forum and googled hundreds of websites, surely I have all the info I need, I just can't get myself to make a decision. I feel totally helpless, I don't know what to do.

Edit - one other thing, I took out a $4K cash advance in November. I immediately paid back $400 and have been making minimum payments since then.

[SamanthaJones]

Make some appointments.

Save your money by not paying unsecured debts. Learn about your options, and plan to maximize the benefit of BK to you. Breathe~

[manglicmot]

I guess the bottom line is this - do I wait until I am in default, or do I go to an attorney now?

[Spartan]

I guess the bottom line is this - do I wait until I am in default, or do I go to an attorney now?

That depends what you are filing.

Ch7, best to go default and save up the money. Paying creditors prior to a Ch7 is pointless.

Ch13, it depends on if you are paying back unsecured debt 100%. If 100% payback, then you may want to file before the default rate spike and run the interest amount to skyhigh. If less than 100%, then it depends on what% you are paying back.

In anycase, best move is to get several free initial consults done. Then you know your options, and can make better decision. Good luck

[manglicmot]

I tried to include all the info in my post and I forgot to even put down what I'm filing. Crimony, I just can't think straight.

I am thinking 7, with a car loan reaffirmation. The car loan is 72 months and is almost half of my debt, so I think a 7 would be better than a 13. I don't think a 13 would fly for me because I barely make enough now to make the car payment without anything else added on.

[lrprn]

The car loan is 72 months and is almost half of my debt, so I think a 7 would be better than a 13. I don't think a 13 would fly for me because I barely make enough now to make the car payment without anything else added on.

Please forgive me for being very direct, but it sounds like your car is eating you alive financially. Sometimes although it's very hard to consider, it's best to think seriously about letting go of an asset if keeping it only makes it that much harder to get a truly fresh start after bankruptcy. Seems like letting the car go through Ch 7 and finding a more reasonably priced car that fits your income and budget better would give you a lot of stress-free breathing room afterwards.

Can you help us understand why are you so set on keeping your car by reaffirming it when it's half your debt and you "barely make enough now to make the car payment without anything else added on"?

[FilingOnMyOwn]

Especially if you are upside down in the car loan (owe more than its worth), you should absolutely not reaffirm it.

[SinkingFast]

As far as timing the BK,.............

The fewer lates and the higher your Credit Scores are before BK, the higher they'll be after. But you'll still have the BK showing, and many Creditors will consider that in their decision to extend you new Credit. So whether you are current up to the day you file or have some lates prior to filing makes little difference one way or another.

You do really need to step back and seriously think about your car situation, tho. If you can barely make the payments without any other debt, this is probably not the car you need. Sounds like you're trying to hang onto a symbol of what you want to project is your lifestyle rather than a reliable piece of transportation.

[tay666]

That is what I was wondering.
If you are going to keep the car, you will be filing on less than $25,000 in debt.
Don't know how much lawyers will cost where you live, but it almost doesn't seem worth it really.

I think we need a little more info.

[manglicmot]

Thank you everybody for your input.

I work a night job and the buses don't run after my shift is over, so I don't want to surrender my car. My financing is 0% through Ford Credit.

I've been re-calculating my income and expenses, I made some small mistakes before, but I have it right now.

My Gross monthly income in 2687, net is 2053. My expenses without a car payment are 1662, with the car payment my expenses are 2025. With a car payment my disposable income is 28 per month. I'm using the Hummingbird worksheet to figure my expenses, I think it covered everything.

My gross annual is 34932 which is below the median for California for a single earner if i'm not mistaken.

I apologize for being such a pain, I'll get to the attornies asap so I won't be such a bother. Again, thanks to everybody for you patience and taking the time to answer and help.

[manglicmot]

Hmm, I figured my annual by multiplying my gross, 671.77, times 52 weeks, for a total of 34932. But if I take my monthly, 2687.09 and multiply by 12 months of the year the total annual gross drops to 32245???? Which number will be used???

[SinkingFast]

Manglicmot,...........

You are not being a pain!!

You are simply going thru the same agonizing process all of have been thru.

Some people decide to file BK. Others find another way to work out their financial problems.

PLEASE!!! PLEASE!!! Feel free to come here and bounce ideas or vent frustrations with us any time!!!

We completely understand what you are going thru!!

[lrprn]

Manglicmot,...........You are not being a pain!!

You most definitely are NOT being a pain! You are asking good questions - that's how all of us started to come to grips with filing. Please don't think that because I made an observation and asked a question about your car that I think you are being a bother or that your reasons for keeping it aren't good one - just trying to be sure that you've considered all your options, even the ones that are very hard to do. Please keep posting your questions - being able to get lots of viewpoints and experiences is one of the best things about BKForum - hang in there with us, please!

[lrprn]

Hmm, I figured my annual by multiplying my gross, 671.77, times 52 weeks, for a total of 34932. But if I take my monthly, 2687.09 and multiply by 12 months of the year the total annual gross drops to 32245???? Which number will be used???

How often are you paid? Weekly? Twice a month? Every other week? Once a month? The right income figure depends on the frequency you get your paychecks. How are you getting your figures?

[poorme]

lrprn is right. The 26 v 12 is misleading because you also have to account for any vacation you're provided.
Another means is to take your hourly rate (if you are hourly) and times it by 2080, which is standard 40 hours over 52 weeks. If you're salaried and paid every two weeks, then use 26.