Well great..deciding to give back the stupid car...but need a car

[CarleyJo]

I get a little confused our attorney said the defiancy on the balance will be pennies on the dollar...which again confuses me.

But the problem is we will need a second car...I love when people say...buy a junker...a junker with WHAT money? IF I had 2000-3500 laying around I wouldn't be in this situation? If I am reading correctly lenders won't touch us until 2 years into the 13????? HELPPPP it keeps getting worse. And we can't go with one car...dh either goes in at 10pm off at 11 am or 5 am till ???? I can't get off work to come get him to go home. Public transportation does not run even remotely close to our home...even walking wouldn't work.

[rrockinggramma]

what he meant was that once you give the car back, the debt becomes unsecured. So they will get the amount to unsecured that your cc companies are getting (the deficiency balance is what is left owing on your loan after your car is auctioned and the fees are taken for storage and towing etc)

So now like you said you need a car. So that begs the question, why give this one back? Just keep it and include it in the plan. If it meets the 910 rule, perhaps you can cram it down.

[CarleyJo]

Thank yo for the feedback...we were 9 days short of the 910 rule. I honestly wish it could be gone...but we need another vehicle. I am not sure how this all plays out.

[rrockinggramma]

well play with the numbers and see how it effects your plan if you keep the car. If the car is in your plan, the lender can only file a claim for principal owed. And you can't cram the car down. HMMMMM perhaps you could check into 722 for financing of a different vehicle while in BK. They specialize in BK financing. (high interest though)

[ProjMgrNewb]

And be sure that whatever kind of car you get, that YOU and/or YOUR HUSBAND finance it and don't get any "friends or family" to do it for you. I had a Jeep that my attorney said to give up, and have "friends or family" finance a vehicle for me. I did just that (for the reasons that rrockinggramma stated above), but during my 341 found out that I could no longer count the vehicle on the means test or in my budget because since the car wasn't titled or financed in my name.... even though I am completely responsible for the car the b/f got for me.