I just may have to file Chapter 7
Date: Sat, 03/07/2009 - 21:07
I take home roughly $2200 a month after taxes, ect... (Family of 4. Wife stays home with 2 daughters) and as of right now, my minimum monthly payments are around $1028.00 a month. I have looked into debt consolidation and debt settlement and I would do the debt consolidation, but the monthly payments are outrageous and the samething goes for debt settlement. Plus, I do not trust the debt settlement programs.
Here are my questions:
Because of a divorce back in 2001, I was forced into a chapter 7 with my ex-wife. I think it was discharged in July or September of that year. I know the waiting period is 8 years, but is it 8 years from the filing date or discharge date? We filed in April of 2001.
I also read somewhere that if you are thinking about getting a new car (new or used) to do so before you file. Isn't that considered fraud or is it safe to do so? The reason I ask this is because my wife and I own 2 cars. 1 is 10 years old and should be in the junk yard by now. There is no way it will pass inspection this August, so that is where it will end up. We need 2 vehicles and I would be able to afford a car payment of a few hundred bucks if I wasn't paying over $1000 a month for credit card bills.
I know you can agree to keep paying on a vehicle even after a bankruptcy, but I am wondering if they will let me keep my other car that my wife uses. That car is paid for; it's 5 years old and KBB value was around $4200.
I'd appreciate any advice anyone could give me.
Thank you.
Hi willdecided, Actually the 8 years only became law in 2005,
Hi willdecided,
Actually the 8 years only became law in 2005, with the Bankruptcy Abuse Prevention and Consumer Protection Act. For cases filed before 2005, the waiting period was 5 years. And that is from the date of discharge.
And the vehicle will only be a problem if it has a lot of equity in it, like a luxury car, or a very nice SUV. If you buy a new car, you won't be able to put it in the bankruptcy anyway, as it is secured. But, I would say to wait until the bankruptcy proceedings are over and your debt is discharged before getting a new vehicle. Perhaps for now you can get an inexpensive used vehicle that at least can carry you from Point A to Point B, until you are free to get a vehicle more to your personal liking.
But you may wish to consult with a bankruptcy attorney for further clarification. Bankruptcy has gotten a lot trickier these days.
Hope this helps,
chrys
The car I have is a 2004 Chevy Cavalier which in my opinion, is
The car I have is a 2004 Chevy Cavalier which in my opinion, is not a luxury vehicle. It's paid for, but it's not worth much. As far as the other vehicle I was thinking about getting, it would be a used vehicle, but it needs to be financed. I know that since it would be a secure purchase, but I thought you had to include it with the chapter 7 and then sign a paper saying you want to continue making payments after the bankruptcy is discharged.
I have 2 lawyers in mind that I will be calling later this week and hopefully they can answer my questions.
I may have to file BK
Like Chrys mentioned, the Bankruptcy laws have gotten a lot trickier. My husband and I just filed for Chapter 7 and were worried about this as well. It depends on who you talk to but there are many options you can take as far as the car situation. It also depends on where you live and there are also exemptions...oh it is tricky but may work in your favor. Definitely talk to a lawyer. After we did, I realized I stressed out over this and there was no reason to.
