I think my husband has gone mad!

[mle409]

For various reasons, we need to convert our ch.13 to ch. 7. We saw our atty on Friday and she told us that under the circumstances, that would be the best thing for us. We are surrendering our home and the only other secured debt is our 1998 Camry and my husbands 1991 Toyota truck. She said that she felt like we could negotiate with the bank on the Camry but since the truck loan is through a credit union and we have an unsecured loan for 5600 that we filed on in the ch.13, they probably wont work with us unless we reaffirm both loans which would be really stupid. Of course my husband doesn't think so. He starts having a fit in the office because he doesnt want to lose his truck.

She gives him several options if he is THAT attached to it like letting them repo the truck and buying back at auction, selling it to a family member and buying it back from them, etc. AND he works at a Toyota dealership that does bankruptcy financing but he tells her that she makes it sound so easy but she isnt the one that has to do it. So now he doesnt want to convert because of losing a $1300 truck.

Does that make any sense to anyone? Does anyone have any suggestions to help this man keep this 14 year old truck?

[HHM]

The priorities are a little scewed, but for goodness sake, its a 1991 toyota truck.

What I am not certain about is why he would lose the truck, is the truck still being financed by the credit union, if so, how much do you still owe on the truck and are you behind on the payments.

[J Armstr]

Get rid of the truck. A chapter 7 is much easier to recover from than a 13. He can probably buy a 14-year old truck right after discharge. (We also found out that we qualify for a mortgage right after BK discharge). On a side note, my lawyer told me to get rid of my 11-year old truck too. It was great truck and we were all sad to see it go, but it's a small sacrafice to pay for the debts we accumulated and start a new life. Besides, cars/trucks lose value...not an investment.

[hhou812hh]

Honestly I can kind of see his point that if he took really good care of his truck and knows it, it maybe better then buying someone elses headache. I usually like to keep things for a long time too if possible, but in most cases I have no choice but to get rid of it since most new cars don't last very long.

Is there anyone (friend/relative) that can buy the truck from the trustee at an auction price?

Good luck!

[mle409]

Yes the truck is financed thru the Credit Union and that is why my atty said that we would probably have to reaffirm the unsecured loan (and I was wrong, we owe 1700 not 1300 on the truck) to keep the truck and my atty strongly advised against that. But something that makes no sense to me is, my Mom works for a small but very reputable used dealer and I took the truck by and asked them what they thought it would bring at auction, they told me probably around 1000, so it would make more sense to let us keep the truck and get 700 more out of it. But my atty said that she has dealt with this particular credit union many times and they would probably rather see it go to auction.

[tinroofrusted]

Get rid of the truck.

[Minnymouth]

Ask your husband if he wants to come out of BK still in deep debt or DRIVE AN OLD TRUCK!!!!!

Everybody "loves their trucks", but REALLY NOW!!

You got to "give to get",

Minny