Good News and Bad after my 341, the car situation needs to be resolved.

[mjengineer]

I had my 341 on Wednesday it went well, and I expect to be discharged on June 23rd. I own my vehicle (worth 12k), and the trustee will only let me do 3 payments if I keep it $3888 a month starting June 1st. I make enough to barely swing that, so I was thinking of just letting her take it. But, it's my only means of transportation, so I need a vehicle to get to work. From what I understand I can't finance a new vehicle until my discharge is completed, so I am kind of stuck as to what to do at this point. I have to let the trustee know by Tuesday. Help!!

[AngelinaCat]

I do not understand why your trustee will not work with you. We had to buy our non-exempt stuff back from the estate, but he allowed us to make monthly payments of $450.00 for 12 months for a total of $5400.00. This did not include our cars. Two of them were too old to be bothered with and the third still had a loan on it with about 10-12 months to go on it, so they were 'Abandoned'.

[despritfreya]

I agree with Cat. If your Trustee has elected not to sell the vehicle thus allowing you to purchase it back, you should be able to get more than 3 months in which to do so. When you say, "the trustee will only let me do 3 payments", do you mean that is what she said without you suggesting a longer time? Trustees know debtors don't have $$, Typically when I get a Trustee that wants money quickly I counter the offer with 12 months and then compromise at 8 if the 12 is rejected. This may be what your Trustee is thinking you will do.

Just remember, however, if your Trustee wants to be a jerk she can simply say "too bad, turnover the vehicle". Tough call.

Des.

[AngelinaCatHub]

To the estate, the value of the car is probably higher than if forfeited to the Trustee. She probably just wants to wrap up your case sooner than later. I'll bet if you call her bluff and she refused to work with you, tell her you leave me no choice but to turn it over to the Trustee and buy a beater. I'll bet as Des said, she will compromise in the end. Always be prepared for the worse though as then you won't be disappointed either way. 'Hub

[mjengineer]

Yeah, she didn't leave much room for working things out. I asked her at the 341 what is the maximum amount of time you will give me, and she said "I only do three payments, but I won't start the first payment until June 1st to help you out". I may have to go buy a clunker, but I will ask if she will extend it. I think you are right she just wants to get the case closed as soon as possible, it what I suspect.

[Exployer1234]

I know this is a tough call. If my trustee wold me I only had 3 payment of 3888 I would have stated right then and there "Sorry I am broke. I can not afford that up front. Unless we can do 8-12 month of payments I will surrender the car".

I hope your trustee rethinks this amount. It really is hard to give up a car that is already paid for. There are some nice cars out there for 4000 dollars though!!!!!

[AngelinaCat]

We have seen some nice ones for sale for about $2500.00...

[disconapper]

Sorry about your situation mjengineer. I will eventually be surrendering my car in my BK 7, unlike you, I still owe a lot, way more than it's worth.

It's sad that they are going to make you pay back what you already own, but I guess it's part of the process.

I've been trolling the internet looking for good used cars as well. I'm not ready to buy just yet, I only just filed last night. However, I wanted a good idea of what I'm going to need to save. Believe it or not ebay has some really decent used cars for like, AngelinaCat said, around $2500, there are lots of other sites and local dealerships as well or at least in my state. I was actually pleasantly surprised at what I have found thus far. I currently drive a Hummer and I envisioned myself going from a Hummer to a 1987 clunk of junk, I don't see that as being the case, however, I'm okay with that, I don't want a car payment.

I hope you situation works out in your favor!

[mjengineer]

Thanks, I made the decision to give the truck up. It's a 2004, so it's not like it's new or anything, but the not having a payment and knowing how well I have taken care of it weighed on me big. It kind of works out my attorney told me I should turn it in next Monday because they sooner the better, so I am having knee surgery and can't drive for a week anyway.

I didn't want to chance asking the Trustee for more time, as filing for BK then being able to pay $3888 a month just doesn't seem to go well. I am starting over, so having money saved up is worth more to me than double paying for a vehicle I already owned.

I will rent a car for about two weeks, while I shop around. I have found some good "beaters" out there on craigslist and autotrader, I totally forgot about Ebay I will check that next. Now I have to actually clean my truck out