Reaffirm a car???? Question . .

[BKAttyMI]

As far as your reaffirmation goes, all I can see in this thread is you convincing yourself that your unemployed husband "NEEDS" this brand new Ford vehicle with elaborate roadside assistance, extremely high monthly payments that you're upside down in anyways. I see no reason why you should keep this vehicle and not find something that isn't brand new but is reliable for your unemployed spouse to drive around while he tries to find a job. This screams poor financial decision to me and I probably wouldn't sign off on the reaffirmation.

[clevelandmom]

Gee BKATTY, did you READ the entire thread? Apparently you didn't. I'm not trying to convince myself of anything - as a matter of fact, if you look at my last few entries, and thanks to the advice of a couple other posters who actually READ my questions, it seems that my "unemployed spouse" and I will be fine without it, (notice the emphasis here) - AS LONG AS WE ARE ABLE TO FINANCE ANOTHER CAR. But thanks for your input anyway.

[bcohen]

Reaffirming for a car loan with payments that high--and where you owe more than the car is worth--is the height of stupidity. If for some reason you are unable to meet the (very high) payments of $450 a month, the car will be repo'd and you will then be sued for a deficiency judgement and have your wages and/or bank account garnished. By your own admission, your husband is out of work, and therefore the risk that you will end up having to default on this loan in the future is very high.
My advice would be to change your intentions to "surrender", let Ford Motor Credit tow this thing away, and look for a decent used car, which can be had for less than $3000.

My family has owned many older cars, which were not worth very much money, and certainly didn't look flashy, but still got us where we needed to go.

[debee]

.... what are the chances that we could get a good, reliable car afterwards? Does anyone have experience with having to give up a car and purchase a new one after BK? If so, was it a decent car? ... if we COULD get a decent car afterwards, maybe just letting it go would be better for us? Are there better deals out there that WE, brand new bankruptcy filers, would be able to get? Any help would be appreciated.

Maybe you should start a new thread on the topic, clevelandmom. I don't think anyone answered it in this thread.

[BKAttyMI]

I was trying to skirt the issue, but maybe bcohen put it in better terms. Whether you can get financing for another vehicle or not, to file bankruptcy and not surrender this vehicle does not seem like a good option. If you were my client, I would be hesitant to sign off on a reaffirmation for you because of the circumstances. I would suggest saving up some money, $2000, and buying a decent car that will get your husband around until he secures other employment.

[ValleYum]

I put on my Schedule J what my actual expenses are - with my cell phone being high (I have a teenager), my medical expenses being quite low (dh's union covers a lot of that), our food is about average, and everything else is close to the norm I guess.

Hi Cleveland mom! Your hubby's union bennies go through despite unemployment I am guessing. There is no chance of them running out and your medical expenses increasing are there - for instance if he was out of work longer than 120 days? Just wanted to make sure your Schedule J (and your future savings) covered that possibility. My hubby is union, too, and I believe his benefits last either 120 or 180 days without a 'work event'.

Also, remember that Schedule J is looking forward to your 'new life' when you can spend a little more on groceries because the lack of CC bills and other high payments mean not having to subsist on mac & cheese 3 or 4 times in a week.

Yay! It is so nice to see the chance of a future that is brighter, isn't it?

I was trying to skirt the issue, but maybe bcohen put it in better terms. Whether you can get financing for another vehicle or not, to file bankruptcy and not surrender this vehicle does not seem like a good option. If you were my client, I would be hesitant to sign off on a reaffirmation for you because of the circumstances. I would suggest saving up some money, $2000, and buying a decent car that will get your husband around until he secures other employment.

That sounds more like advice rather than snarking at someone. I am glad you re-worded it.

Since you are obviously an attorney, please remember from our side of the BK we are somewhat emotional about our perceived needs - such as thinking we need to keep our house or a car that others see is going to be an albatross around our necks in our new sea of post-BK life.

Sometimes it takes a gentle nudge or some sage wisdom to help us see our financial realities. To me, it seemed like you were shoving her over a cliff with your first comment. Just saying.

I like having attorney's perceptions posted on here - particularly when it is constructive for us. Thanks again for rephrasing it!

[clevelandmom]

Hi ValleYum!
Thank you for your post!! First of all, THANK YOU for mentioning that about the union and benefits. Yes, I do believe he is covered for quite some time while he is laid off. When he is actually working, they take a LOT out of his check towards health and welfare - but the reason they do that is so that if they get laid off, they have plenty of funds "banked" to pay for the medical insurance. I know he's covered for a while, but you're right - we should look into exactly how long.

Thank you for your comments about the Schedule J. I do hope this thing gets worked out and the future is brighter. I just want this BK over with and dh back to work. No cc payments, and the chance to actually SAVE money for a chance sounds so nice!!

Thanks for your comments to BKAtty also. Yes, he did throw me over a cliff and it really wasn't appreciated. I don't know if I was more offended by his tone, or the fact that when attorneys do that it gives OTHER attorneys a bad rap. That bothers me because I work with attorneys too, and they are some of the nicest people I have ever known, seriously. That condescending attitude wouldn't be tolerated at the firm I work at. That being said, however, BKAtty if you are reading this, thanks for rephrasing. I do appreciate your wisdom and advice. Bcohen, on the other hand - I would think the real "height of stupidity" is commenting where you obviously haven't read the whole thread either. But I digress. We are giving up the car. Thanks for all your $0.02.