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    #1

    Sell off car?

    Here's our situation....

    We have a 1st mortgage $1800, 2nd mortgage $200, student loans ~25k, tons of cc debt i'd say approx 80k.

    We own all our vehicles, one is my wife's car that would be worth approx 17k retail, 2nd is my workcar that's worth maybe 2k retail, and 3rd is my project car which would probably book at 10k however that car is not in running order.

    My question is should:

    1: Sell the 17k car, make advance payments on everything I can such as 1st mortgage, 2nd mortgage, student loans, to get rid of that cash before filing...., buy a cheap car to use uptill bk is complete.
    Also would have to sell the 3rd car, which I could probably get a friend to buy.

    2: Get a bank loan on the 17k car to get quick cash, make some payments on that loan and use the money to prepay mort, etc... plus it would help raise our monthly costs or would "this would be fraud"

    3: Any suggestions?
    Last edited by completelybroke; 11-28-2008, 01:26 AM.
    Tags: None
    #2
    Or, sell the 2 cars and use the near $30K to pay down the credit cards.
    With your present income and access to Ot {from a prior post} you're a long way from bk.

    Comment

      #3
      Originally posted by keepmine View Post
      Or, sell the 2 cars and use the near $30K to pay down the credit cards.
      With your present income and access to Ot {from a prior post} you're a long way from bk.
      That has crossed my mind however in todays market, a car that may retail for 17k will sit and sit and sit for a long time to try to get that amount. To sell it fast i'd have to probably mark it at 12k and even then it would likely take forever.

      The 2nd car does not run and it would be impossible to get anything close to kbb for it.

      I think that if I sold both fast that i'd probably end up with 15k MAX.

      Comment

        #4
        Originally posted by completelybroke View Post
        That has crossed my mind however in todays market, a car that may retail for 17k will sit and sit and sit for a long time to try to get that amount. To sell it fast i'd have to probably mark it at 12k and even then it would likely take forever.

        The 2nd car does not run and it would be impossible to get anything close to kbb for it.

        I think that if I sold both fast that i'd probably end up with 15k MAX.
        You have too many assets and it does not make any sense to file. They will make you sell your vehicles anything over the exempt amount (Depending on your state it could be anywhere from $1000 to $3000) per filer. In your other thread you mentioned equity in your home. Federal Homestead is $20k, Some states will be less so if you have more than this in equity they can force you to sell your home to use the equity to pay off your creditors.

        Comment

          #5
          Originally posted by ansky0007 View Post
          You have too many assets and it does not make any sense to file. They will make you sell your vehicles anything over the exempt amount (Depending on your state it could be anywhere from $1000 to $3000) per filer. In your other thread you mentioned equity in your home. Federal Homestead is $20k, Some states will be less so if you have more than this in equity they can force you to sell your home to use the equity to pay off your creditors.

          In WA state the homestead exemption is 125k. Yes I know I may be forced to sell the cars and that is why i'm trying to plan out my bankruptcy carefully. From what I understand that if I sell the car, use the funds to pre pay mortgage, insurance, and whatever else I can that is perfectly legit...isn't it?

          I do not have anywhere near 125k in my house, really all I have that I believe isn't exempt is the cars. And those wouldn't even be close to paying even 1/4 my debt.

          Comment

            #6
            You'd be surprised what CC's are settling for. I wouldn't be shocked if you could settle the 80k for 20k, once you got a few months behind. I'd use the 20k to settle as many accounts as I could, then try to make deals on the rest at a later time.

            If you pay any of your creditors anything over 1,000 before filing, they will probably sue them to get it back, then evenly dispurse it amongst your creditors.

            Comment

              #7
              I had a 20k card try to settle for 4,500. Too bad I am broke.

              Comment

                #8
                Originally posted by OtisMyMan View Post
                I had a 20k card try to settle for 4,500. Too bad I am broke.
                When they do offer settlements do they expect cash in full or payments?

                Comment

                  #9
                  it depends on the creditor. Always get all settlement offers in writing, CYA. Most creditors will accept the entire balance in 2 or 3 payments.
                  Filed Ch 7: 12-31-08 in IL (Equifax) 469
                  341: 2-13-09 --- Held and Concluded 538
                  Discharge: 4-15-09 - 601 NOW
                  I came, I went, I saw, I was discharged. Thank god for this board.

                  Comment

                    #10
                    Originally posted by completelybroke View Post
                    When they do offer settlements do they expect cash in full or payments?
                    Try to settle one lump sum in cash since they will be more apt to negotiate. Seeing so far, AmX, BOA, Citi settling for 20 cents on the dollar.

                    Comment

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