Help needed!!

[Nitromike]

Ok, chapter 7 vs chapter 13.

To keep this simple:

$20k in debt as to repos on wife's credit. less than $3000 in public judgements on mine and about $7k in other misc collections. Self employed as a Sole-Proprietor however currently not working due to health reasons. Wife works fulltime. We have 1 joint account on a car we need to keep. $18k owed on a defaulted Acura. 9 months into the contract and they are looking for it. We have no credit cards, and 2 simple savings accounts. We want to clear everything, but the car. But the car is behind, so it seems chapter 7 with a twist of chapter 13 lol. we have met with a BK in our area that says 13, however, we will have payments around $550/mth for 48 months and will keep all the debts. 7 will clear all, however the car that she needs for work, might have to go. Your thoughts? Thank you in advance for you time and attention. we need to make a decision asap.

[HRx]

Ok, chapter 7 vs chapter 13.

To keep this simple:

$20k in debt as to repos on wife's credit. less than $3000 in public judgements on mine and about $7k in other misc collections. Self employed as a Sole-Proprietor however currently not working due to health reasons. Wife works fulltime. We have 1 joint account on a car we need to keep. $18k owed on a defaulted Acura. 9 months into the contract and they are looking for it. We have no credit cards, and 2 simple savings accounts. We want to clear everything, but the car. But the car is behind, so it seems chapter 7 with a twist of chapter 13 lol. we have met with a BK in our area that says 13, however, we will have payments around $550/mth for 48 months and will keep all the debts. 7 will clear all, however the car that she needs for work, might have to go. Your thoughts? Thank you in advance for you time and attention. we need to make a decision asap.

It's honestly a personal decision. You and your wife need to seriously think about whether or not you want the burden of having to pay $550 per months for the 48 months. I guess is, the two of you are already exhausted from the struggle to trying to maintain all your debts. And if things dont work out well under Chp 13 you can always convert your Chp 13 to a 7 for additional filing fees.

Note: Wouldn't you like to save/invest that $550 per month instead?

Based on the candid information you shared, I would personally suggest Chp 7 and consider having the car recooperated under a "redemption", if you really want it that bad. If you can afford to purchase a reliable used car for less than $7,500 cash. You'd be doing yourselves a big favor. I think it's safe to speculate that you two don't have a substantial amount of money in savings. Most people don't who file for BK. Get rid off all your debts, save money, change your spending habits, and slowly/wisely rebuild your credit. Re-establishing credit will not be an easy task, but it's possible.

Good Luck!

[Nitromike]

So start with a chp 7, with a redemption on the car. If they arent willing to do that so that we can keep the car, wont we need to do the chapter 13? being that we only have the car and no other method at this time for transpo? Good advice btw, wife and I are on phone speaking of the the $$ we could save @ $550.

[HRx]

So start with a chp 7, with a redemption on the car. If they arent willing to do that so that we can keep the car, wont we need to do the chapter 13? being that we only have the car and no other method at this time for transpo? Good advice btw, wife and I are on phone speaking of the the $$ we could save @ $550.

Hire an attorney to file a Chp 7 petition, and tell him/her you want to explore all your options in keeping your vehicle, whether it be through Redemption or Reaffirmation. If the lender doesn't agree to reaffirming the car, go the redemption route, to buy back the car at wholesale price. The biggest drawback to this is, you'll most likely be hit with an extremely high interest rate. That's why I also recommened that you two consider purchasing a used car cash. Because you're behind on your car notes, the lender may not be willing to let your reaffirm the loan.

Good Luck!

[Nitromike]

Thx, we really appreciate the input and we value it.

[HRx]

Thx, we really appreciate the input and we value it.

No problem!

Good Luck!

[Dawn1970]

I say go with a #7 and wipe it all out. You can, of course, attempt to reaffirm on the car if you really want to keep it that badly. Even though you're behind on the payments, they may see it as 'Hey, he's about to wipe out all his other debts, so he can probably catch up on the car.' And maybe they will let you reaffim and keep it. I have my creditors' meeting today and I'm wanting to reaffirm on a car note that my dad co-signed on (YIKES!) and it is not up to date, nor is it properly insured. So I'm sweating that a bit. I will let you know this afternoon how it turns out for me and maybe that will be a good indicator for you. THere is not much owed on it, though. That could be a factor. And the fact that it's a 1999 with high mileage. I will post again this afternoon and let you know what happened with my attempt to reaffirm on my car note. Best of luck to you whatever you decide.

[Nitromike]

Thanks ... I look forward to hearing about your progress. I will sign papers sometimes this week, so this will be a good indicator as to how it COULD go lol

[Dawn1970]

NitroMike, The thing about my car is that my credit was so bad when I bought it, my dad actually signed first on the loan and I am considered the co-signor. So nobody from this bank showed up for my creditors' meeting; I'm sure because they know they can go after my dad if I don't bring it up to date. But I am grateful that I will get a chance to do so. The car has some life left in it so I did want to keep it. However, there was one guy whom I overheard reaffirming on a car and I think the trustee gave him an extended deadline to come up with the proof of insurance because he did not have it but wanted to keep his car. So maybe there is hope.

Can you believe the only creditor who showed for me was a finance company whom I bought some furniture through which is now 3 years old. My mortgage company did not show about my house, although they have filed the appropriate paperwork to where they know they are getting it back. I was told that most times the creditors don't even show. I told the furniture finance guy that most of the furniture he was after was broken and EXTREMELY depreciated. But I said, 'Hey, if you want it, just let me know when you can send somebody after it.' So it really was not bad at ALL. I feel 100% better now that I got it over with!

Good luck NitroMike. I will be around if you need support 'cause I sure know what it's like.

[Nitromike]

Thx..... i will post some updated info this am.