large purchase

[floridian]

about 5 months ago, the reality that i was in trouble had not hit home yet.... i thought i had a buyer for my home and i was going to clear about twenty grand... the deal fell through..

i bought a used motorcycle on a credit card for 5k bucks... a short time later, realizing i didnt like it, i traded it in a different model at a dealer and financed another 5k....the blue book on the new bike is about 2k more than i owe...the reality, is that in the current market, it would sell for about what i owe....

now that the bk is staring me in the face and i want a 7, how do i deal with this situation? would it look better if i let the trustee take the new bike or what...

what would you do...

[Bandit]

i can think of three options off the cuff

a) can it be covered under your states exemption through vehicle & wild card? & keep paying on it, if your wages allow the payment & the state & creditor lets you reaffirm.
b) give it back & take the loss on what you already paid, because that is a secured debt, thus one less bill to pay on when your BK is over. (but you may get a penalty doing that)

the trustee might not want the bike anyway because after paying what you owe & messing with it, it would just go back to where you bought it from.

c) I suppose you could try to sell it outright, pay your creditor off & be done with it that way.

How bad do you want to keep it?

[floridian]

i would like to keep it, due to the low monthly payment, but not if its going to look bad being associated with the trade-in being purchased with a cc..
motorcycles currently have an obscene depreciation rate...

[Bandit]

i see. they wont be concerend with the assoiciation of your trade in & how you got it, just what you have now, the current amounts owed/value & if you can afford it or not.

if you can afford it after all the other debt is gone & you really like it, then i would try to keep it too if they will let you. The creditor you owe money to will have some say in this but I doubt they will pass up you wanting to pay them.

I owned 3 bikes in the past, all honda super sorts 550, 650 & 950, and there is no better way to get around than on 2 wheels.

[floridian]

yep, they can be a lot of fun and very addicting...its another habit im going to cut back on....