Ch 13 vs Debt consolidation ...and other ?s
I think it will be better to file Chapter 13 bankruptcy. As soon
I think it will be better to file Chapter 13 bankruptcy. As soon as you file Chapter 13 bankruptcy, automatic stay will be imposed on the court proceedings. You'll be able to repay your debts under a court monitored plan within 3-5 years. The court will decide about the monthly payment. I guess, it will be better to not purchase new cars right now. Paying off your debts should be your first priority.
Thanks for your reply. We were told it would be a 5 yr ch 13. I
Thanks for your reply. We were told it would be a 5 yr ch 13. I agree debts are the priority but also worry that our cars are going to break down. Although they are almost paid off they are luxury cars ($200 for an oil change, etc) and anything that goes wrong will be thousands to fix...which we won't have available. We also need to get to work and have 2 small children so it's important to have reliable transportation. That's why I was asking about it. I assume no one will give us a car loan during our ch 13.
Can you trade in those luxury cars for something economical and
Can you trade in those luxury cars for something economical and used? (Like a used Kia) Your maintenance costs and insurance costs will probably go down.
You need to talk with a bankruptcy attorney. I dont recommend the debt consolidation route .....with active judgments, they can jump in any time and garnish your wages or freeze your bank account at anytime.
Yes, we could trade in the cars...they are only worth about $500
Yes, we could trade in the cars...they are only worth about $5000 though. We need something that will fit 2 car seats so we have to weigh the pros and cons. Our cars now are at least very safe ones and can drive well in the snow.
Does anyone know how the monthly payments are calculated for a ch 13?