A rant... and a few questions as well. (LONG)

[Ms.Santos]

How much is the attorney going to cost... I am truly bankrupt, therefore I have no money. I know amounts vary, but is there a guesstimated range? I'm thinking of filing chapter 7.

I have had a TERRIBLE year. I was a real estate agent last year and barely made anything due to the slump in the market. On top of that, I was pregnant and gave birth to a beautiful baby girl (the only highlight of my year) but the pregnancy was high risk and I was on stict bedrest most of the time. Then my husband (who is an undocumented immigrant) was in a car accident, which totaled our vehicle. This loan was in my sister's name, and I was the cosigner. Now my husband is in jail for running away (on foot) from the accident... something really STUPID to do for simply being scared that he didn't have a driver's lisence. He should never have been driving...UGH! He spent 3 weeks in the hospital and had major surgery due to internal bleeding... after his 6 month prison term for failure to stop for an accident, he will be deported back to Honduras. Did I mention that I didn't have medical insurance when my daughter was born, and when my husband was hospitalized following the accident?

What this all adds up to...
-credit cards that I was stupid enough to max out in college
-a possible judgement for voluntarily evicting myself from the house I was renting when the accident happened... we lived there 11 months and broke a 2 year lease (and yes we cleaned and paid the last month's rent before going)
-car loan balance for the totaled vehicle
-medical bills in excess of $30,000
-student loans totaling around $25,000
-payments to the lawyer for the criminal representation of my husband... around $1600 left to pay (down from $3500)

Which of these debts can be liquidated?

I have no assets... not even a car. I have been borrowing my brother-in-law's vehicle, but he needs it back in December. I rent an apartment, and I have a roommate that pays half of the rent. I can account for every penny of my money. It's all on a spreadsheet that my sister updates every time I get a paycheck... I am on a budget, and I don't make enough to pay my bills. I am a single mother of a 6 month old, and I pay for childcare. I even thought about getting a 2nd job-- but even if I *could* afford the extra childcare, I have decided that being away from her more than I already am would not be fair to either of us. I already work 60 hours a week.

My problem is that I NEED a car... I have been told by everyone there is no way I'll be able to get a car if I file BK. Is this true? I want to pay my debts, and I have tried so hard, but everywhere I turn, there is something keeping me from doing that. I can prove financial hardship... I am not abusing the system.

Here is another worry: As I mentioned earlier, the primary name on the loan for the car that was totaled by my husband, was my sister's. I was technically the cosigner, and she was the borrower... the car was mine and I made the payments. Auto insurance and GAP insurance paid most of it, but there is quite a balance left, and the payments will put me over the edge. I am terrified of ruining my sister's great credit score if I file. What will happen if I do this? If this just means she's responsible for the payments, I will just continue to make the payments to her, since I can have all my other debts liquidated. I just want to make sure I'm the one with the bad mark on my credit report, and not her.

I am in tears, and I can't sleep... that's why I'm posting on a bankruptcy forum past midnight. I know you all have heard these stories before, and I'm sorry this is so long, but it feels good to type about it. Maybe one of you will have some good advice for me. I appreciate everything...

[JRScott]

Student loans cannot be discharged in a bankruptcy. (I've never heard of anyone successfully doing so)

The Credit Cards, Any Judgment amount, car loan balance, medical bills and possibly even the criminal lawyer could be discharged.

If you file then the lien holder on the totaled car can come after your sister.

You can still get a loan even after bankruptcy, the interest rate will be high though. It might be better to save up enough to buy a cheap car to just make do. (Say 1000 dollars or less).

[Boscoe]

First thing, ms. santos, it seems real bad now, but many of us know exactly how you feel now. So remember, I know you want it better today, but it will take a few months....

Based on everything you have said, you are a classic candidate for a fresh start. Wipe out the bills and start over.

Let's start with the car - are you currently making payments on it? If so, continue to do so.

JRScott is right - you won't be able to get rid of the student loan, or the car loan if you keep it.

But go find a few (the recommendation is generally 3-4) bk lawyers to speak to and tell them everything you said here. Take one thing at a time and one day at a time......

[Ms.Santos]

Well, the thing is... there IS no car. It was totaled by my husband. Geico paid the value of the car (which was much less than I owed, due to my outrageous interest rate) and the GAP did not cover the rest like I thought they would. I stopped making payments in March, because I just assumed insurance would pay it off. Both Geico and my GAP company have paid everything they're going to pay. I just got the notice yesterday that I still owe Wells Fargo over $3500 that is to be paid in the amount per month of my original car payment-- $426.05. I SO do not have that kind of money! If I can get the rest of my debts discharged (except student loans... the payments are only $50 a month, anyway) that will leave me enough money to give my sister the Wells Fargo payment for the car that no longer exists...

My main concern is this: I do NOT want a bankruptcy on my sister's record. I don't mind if they go after her for the payments, because I'll just give the money to her to pay...

[Boscoe]

That is good that student loans are only $50 a month. So all the car expenses will get discharged as well.

The involved part is with this insurance payment. I would think it technically is your sister's $$, since she is on the hook for the insurance payment.

But, you need to see an attorney on this to be sure, because you don't want that considered income to you or an asset of yours because the trustee will take it.

There will be more posts on this for sure from those with more experience.

[Ms.Santos]

I'm either not explaining it clearly, or I'm just not understanding it...

OK. Here is a timeline of events.

Dec 2005: I bought car in North Carolina, and my sister cosigned with me. Loan was for $20,000. It actually lists her name first as borrower, and my name as cosigner. My sister is in Missouri, and the car is mine in NC... I made the car payments every month.
March 2007: Husband totals the car in an accident (car no longer exists)
March 2007: File auto insurance claim w/ Geico
June 2007: Geico FINALLY pays claim of $10,500 to Wells Fargo. I still owe $6500 to Wells Fargo, even after the claim is paid
July 2007: File GAP insurance claim.
Aug 2007: GAP pays only $3000 to Wells Fargo. NOW I still owe $3500 to Wells Fargo.

I just called Wells Fargo, and they said they would do a settlement amount. Once they receive the GAP check, and the warranty refund, they will give me a settlement amount that will be less than what is owed, and he said it would be broken into 3 payments. I hope I can afford the settelment!

[Spartan]

File CH7. Student loan is the only one not dischargeable. Reaffirm the car loan with Wells fargo.