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All time low after car repo - should I file bankruptcy

Submitted by on Tue, 12/18/2007 - 14:44
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Posted this on Credit Repair....then realized I should be posting here.

I'm really just here for some support I think.

In 2010 my 1999 bankruptcy will be off my credit record. It's been a financial struggle for years - I'm a single mom of 4.

A stupid move on my part got my car repossessed last night. I got a car title loan months ago so we could see my son graduate boot camp (14 hours away from home) - my army son promised to help pay for the trip but never did. Living paycheck to paycheck makes it difficult enough to pay the interest - let alone pay anything on the principle.

Anyway the last payment was due on 11-24 & I was short on cash so I asked if I could pay on 12-15 - they agreed. Then our cat became gravely ill giving birth to kittens - she required emergency surgery & I was unable to get to the car title loan place on the 15th before they closed. I was going to stop by after work on Mon, 12-17, but had to get the cat from the vet before they closed. I foolishly assumed that 2 more days would not be that big of a deal & planned to call as soon as I got home to assure them I'd be there 1st thing in the morning with the payment - when I got home I was greeted by the repo guys and could do nothing.

My financial mess is like a shameful deep secret - I am too ashamed to tell others - so here I am sharing my story here with others who can possibly relate. My car has been repossessed, I'm in the process of signing a loan modification with mortgage co to avoid loosing my house, the cat's surgery totals $1,400 & I just agreed to payment plan w/vet's office to have it paid off in 3 months, and now I have about $50 left to buy xmas presents for my 4 kids & go grocery shopping with.

Ironically, before last night I really felt like my finances were improving. I recenly got a MasterCard that I've been paying on time to help improve my credit rating......the vet was able to get me a $500 line of credit for the cat's surgery & I really think it's because of the MasterCard.

Now this repo has me considering bankruptcy again (the repayment plan version). After all - having a repo on my credit report is just as bad as having bankruptcy - right.

I'm a mess. Any help or just support would be great.


Please do not do another bankruptcy! There is no need to have that on your credit report for another ten years. Please sign up to our site and request the free counseling. A professional will contact you to discuss your options.
It is easy to think another day or two shouldn't make a differnce. I have made that mistake myself. Many of us here have been down the financial rough road. We are here to help you.
Todays chapter 7 is much different than it was. They make you repay on a plan that is designed for you to fail from what I have been told. Hang in there and we will see you through this. WARNING: Stay away from payday loans no matter how tempting they may seem!!


Submitted by Frogpatch on Tue, 12/18/2007 - 15:01

Frogpatch

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My car got repod couple days ago, I'am going thru divorce so all my credit is gone...If I file bunkruptcy can I get my car back?? I have time till the may 5th


Submitted by on Sun, 04/27/2008 - 21:24

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It all depends. If you file a 7, you will not get the car back. In a 13, a judge may issue a cram-down order and make them give the car back; but then you have to keep making the payments and keep it insured. At any point thereafter if you stop paying or if your insurance lapses, then the court will let them go take the car again.


Submitted by DebtCruncher on Mon, 04/28/2008 - 04:46

DebtCruncher

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my father bought a car in sept. 07. He stopped paying the car loan July 08. He had back surgery on august 08. He can not return to work. He is 75 years old. When he bought the car he was working and getting an extra $400 a month. He is on a fix income. After rent, utilities and food he has around 150.00 left. I think the car dealer took a chance on an old person and took advantage of him. The car was $9500 and walked out the place with a $16,000 loan. Can they take all his money.


Submitted by on Wed, 01/21/2009 - 22:00

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Car was repo but my grandma did financing, she does not have a license so insurance is in my name, grandma filed bankruptcy to get car back, finance company wont release it because insurance is not in her name..... what do i do now


Submitted by on Sat, 02/14/2009 - 18:23

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It shouldn't really matter who pays for the insurance, as long as the vehicle itself is is insured.

She should talk to her bankruptcy attorney. Really they should not be holding the car unless they file a motion for relief with the court. When the court decides there is inadequate insurance, then the court will allow them to hold the car. For the time being, I would argue they are in contempt of the court's stay.


Submitted by DebtCruncher on Mon, 02/16/2009 - 18:21

DebtCruncher

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Hey all, let me tell you something, If you file bankruptcy chp 7 and you are late on your car note, they will come pick that sucker up in heart beat. Only chp 13 a trustee of the court may ask them to return the car back and gave you a little extra cash....that's a good trustee. Other then that you're out of luck when getting your car back if it get repo, unless you can afford to pay the car off. Good Luck all. We all go through something in our lives...but the answer is how we get out of it. If you know Jesus...guess what you'll be just FINE>>> trust me.. God Bless all


Submitted by on Thu, 12/16/2010 - 23:27

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It is true that if you had filed Chapter 7 and if the vehicle is above the exemption limits, then the trustee can order the sale of the property. The exempted amount will be returned to you whereas the rest of the amount will be used to pay off your creditors.

In case of Chapter 13, you'll get a repayment plan from the trustee. If you make the payments on time as per the repayment plan, you will be able to save your vehicle.


Submitted by Anna Sweeting on Fri, 12/17/2010 - 22:26

Anna Sweeting

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