Motorcycle

[Cotto202]

I know this sounds bad but hear me out. I am about to file Ch 13. I make good money and do have about 40,000 in unsecured debt which I was doing OK with until a year ago. I got sick and was struggling for a few months. My credit score was over 800 and I have never missed or been late on anything in my life. I called my mortgage company (Countrywide) at the time and explained my situation. They told me over the phone I could defer 2 months mortgage payments and to go ahead and skip Nov and Dec 2008 payments. Having never been through this before, I listened. I got a letter in mid December 2008 saying I was 30 days late for Nov, Dec was due and Jan was due in 2 weeks. I made all three payments immediately but they reported this to the Credit Bureaus. My credit score dropped 130 points. I refinanced in March 2009. My credit cards have all discovered the negative mark and took away all available credit, doubled my interest and doubled my minimum payments. No one has been willing to work with me and now I'm drowning. I have a Harley I financed right before all this happened and have not been late ever. Riding is my life. If I file Ch 13, can I keep the bike. My attorney is reluctant to tell me directly. He hinted that if I file a petition of intention to surrender it and work out a deal with the bank to keep it, I can. Is this true? What kind of "deal" can I/ should I work out? Will this affect my BK? Can i file w/o filing an intention to surrender? I am so confused. I am not even looking to get out of paying my creditors any less than what I owe, I just cant afford to make more than the minimum monthly payments after they doubled everything. I want to get out from under this and can't see how to without filing. I just don't want to loose my bike in the process. I currently owe 13,000 on the bike and that is about what it is currently worth.

[NoTomatoCan]

Welcome to the forum.

As someone who is less than 2 months away from filing, and has not paid CCs in 30-45 days (depending on the card) I can tell you that EVER ONE of my credit card companies has called me in the past week to "work out a deal". Some are more generous than others, but typically they are offering to close the account, reduce the interest rate to a reasonable 6-10% (once again, depending on the card) and put me on a payment plan. The CCs are not the primary reason for our BK, so this really doesn't change anything for us, but that may be something to remember as you get further along.

I had approached them when I was still current and got the same response you seem to have gotten. I understand the "business reasons" behind why they wait, but it is frustrating.

As for your bike... Others will chime in, but will likely need more information about your situation.

[Cotto202]

I keep reading about loan reaffirmations. What exactly is this and could it apply to my motorcycle loan? If I file Ch 13 and tell the courts I intend to surrender the motorcycle, then agree to a loan reaffirmation, can this jeopardize my BK? I do not intend to include the motorcycle, my car or my house in my BK. As I stated, I am not behind or late on anything right now but will be soon if I don't a solution. I have asked my attorney and he advised to file an intention to surrender it but then told me if I worked something out with the bank, then that was between me and the bank. Doesn't a loan reaffirmation have to be signed by him and the courts? Do they normally approve such things?

[Flamingo]

I keep reading about loan reaffirmations. What exactly is this and could it apply to my motorcycle loan? If I file Ch 13 and tell the courts I intend to surrender the motorcycle, then agree to a loan reaffirmation, can this jeopardize my BK? I do not intend to include the motorcycle, my car or my house in my BK. As I stated, I am not behind or late on anything right now but will be soon if I don't a solution. I have asked my attorney and he advised to file an intention to surrender it but then told me if I worked something out with the bank, then that was between me and the bank. Doesn't a loan reaffirmation have to be signed by him and the courts? Do they normally approve such things?

All your debts will be part of your BK. You cannot pick and choose. You may be able to pay your mortgage and car payment outside of your Plan but those debts will still be part of your bankruptcy and will be marked as such on your credit reports. As to your motorcycle, it may be viewed as a luxury. Your car will probably be crammed into your Plan but you will probably have an issue as to the motorcycle and may have to let it go. My hubby rides and I understand the passion as to your bike. But Harley Davidson is not leaving the planet and if you have to let it go you can always get another one. Unfortunately, priorities come first and you have to get yourself of the financial mess you are in first. Best of luck to you!