Just filed and really scared (Texas)

[sucks2bndebt]

I'm new to the site and have been lurking since September, I'm just a frantic mess! I have noticed on this board that a lot of people on here who have filed are mostly couples, not many single people with single incomes, and with that income being unemployment! I know, I know...why not Chap 7....well I have a vehicle...that I need in order to get around and to go to interviews. That is my only secured debt, and I don't want to loose it. My lawyer just filed on 10/21 and I don't even know what my budget is yet. Reading this board I am so scared because I see a lot of monthly payments more then I can afford, and I keep thinking to myself... "have you screwed up?". I've had my car more then 910 days so my lawyer will be getting the price crammed. I have about 6K worth of unsecured medical/credit card bills. My car is worth about 8K after cramming...what can I expect? My DMI is negative....and I am afraid that the trustee will look at me sideways when he sees that I am unemployment....I am so lost, I feel like at just turning 35 I am ruining/ruined my life...on top of that I still have not found employment, and filing BK just made my search that much harder.

[justbroke]

You could have still kept the car in a Chapter 7 unless you were actually behind in payments. In your case, I really don't understand why the Chapter 13, which I'm guessing you'll be in for 36 months.

The Trustee may look at your sideways and wonder why you're filing a Chapter 13. It's a fair question and I'm even asking why as well. Never file Chapter 13 just to keep a car. That is not a good reason. You could just save and get a junker... and, better yet, if you're actually current on your payment, you might even be able to "ride-through" where you discharge the debt of the car, but keep the car so long as you continue to pay and stay current.

[NowImDownInIt]

When you filed your attorney didn't give you an idea of your monthly plan? I am in Texas too. I am concerned. Is your DMI negative with your car paid outside the plan? Because that should clear up something when it's crammed down and paid through the plan. I was filing singly on my income when I filed too.

I don't think that the BK will affect you finding a job too much. Right now the economy is the most to blame.

Are you behind on your car? Your attorney didn't tell you that you could exempt it? We have great exemptions in Texas.

[enginegirl]

I am so sorry to hear what you are going through..... as a single person, I can tell you that yes it is stressful but you WILL get through it... I recommend that you take the means test, at least that will give you some kind of idea of what you will be paying (do a goggle search for your state).... I am surprised that your lawyer didn't go over this already with you.

are sure you cant keep the car in a 7? Is it an asset at this point if you owe more than it is worth??? ... are you sure about this? can you try to negotiate with them?? I know that you need a vehicle to get around in TX (same here in FL) but if you are only doing this to keep the car can you not get something cheaper?
... If you are doing this to keep a car that is worth 8K and to get rid of 6k of debit and then also paying 3-4k in atty and trustee fees... is it really worth it?
I'm just throwing these questions out there for you not judging what so ever...

I know this is a hard decision and not working makes it even harder... I wish you tons of luck.... read through this forum you will find lots of answers...

ps I just turned 40 (shhhhhh!!).. this is so not where I was expecting to be.. life throws us all curve balls from time to time....but just remember what does not kill ya makes you stronger.. learn the lessons now .. and in 5 years when you are my age you won't be in such a mess...

[CoBelle]

Just adding support...cyber hugs....as we are all freaked out and scared here! So welcome to our little club.
If your 13 ends up being a bad idea for whatever reason, you can always convert to a 7 for $25.
I hope that your lawyer has a good reason for recommending a 7, and not just becausee he can earn more.
But no matter...if you are already filed, then just relax and go with it AND if it becomes a problem for you you
can voluntarily dismiss or convert. In fact, I'm converting today!!!!!

[sucks2bndebt]

thanks everyone for the encouragement and support. I got way behind in bills when I had to resign from my job and move back to my home city to help take care of a sick parent. That was in Sept 09, did not find a job until Jan 10, the lender Citi was really understanding and working with me. I got laid off in may 10, which was bad because I was still trying to catch up from before! Once Santander took over in 9/10 they would not work with me at all. I did not start getting unemployment until JULY 2010, so that got me farther and farther on all my bills....and I felt suffocated! I know that I shouldn't file to keep my car but I have no one here that can help me to get around if need be. How am I to save up for a cheaper car with my little income? I would have rather filed 7, but I know Santander is a really NASTY predatory lender that WILL not modify the loan and i can't reaffirm because I am more then 60 days behind...My car note is 345.00 a month, I share a residence with someone else, and I only have to pay a portion of bills. If I can get a cheaper trustee pymnt then my car not I will be able to make it!

[momofthree]

Why did you sign paperwork not knowing what the payment would be? Your first payment is due in just a couple of weeks (within 30 days of filing), you should already know what your plan payment amount is.

I, too, am confused as to why you filed bk at all. With $6k of debt, it almost costs more to file bk ($3k-$4k in attorney fees). It makes little sense. How much are you able to cram down on the car? You said it's getting knocked down to $8k, what was your prior balance?

You should be in a 36-month plan and probably just paying the car + attny + trustee fees since you have negative dmi. I think you're probably looking at:

$244--$8k car payment at 6% over 36 months
$70-ish--attorney fees (guessing at $2500 in attny fees in plan)
$30-ish--trustee fees

=$344/mo estimated

[Pandora]

I'm with the others... dont know why you did a Ch. 13 vs. a 7. Your attorney should've explained everything to you in detail.

Since Ch. 13 is voluntary, I'd dismiss your 13 and re-file as a Ch. 7 - especially if you're having trouble already making your car note - as Momofthree pointed out - your plan payment will be around the same as your car payment.

[sucks2bndebt]

The thing is guys I was only having problems because I had not received unemployment as of yet, and I have a couple of job interviews prayerfully on the horizon. I have not signed any papers but a RETAINER....my lawyer has not even submitted a budget yet. He had to file an emergency because the REPO man came to my house at 11pm on 10/21 looking to pick up my car, when they sent me documentation stating I had until 10/29 to pay....(which I already know that is how they work NOW) but i've never have to experience anything like this in my life! Next week I will sit down with him and do a budget, and I will probably go longer the 36 months to stretch the payments out longer...I'm sure I can always modify once I have a higher income. In a Chap 7 you CAN NOT keep a vehicle if you are behind, and SANTANDER WILL NOT REAFFIRM nor would they MODIFY, that is why I'm in this mess, and to be realistic....I will not be able to save up for a cheap car, I need a reliable car that will not break down when I have to travel 50-60 miles one way a day because I help take care of my sick father, so it is a lot involved with WHY I need my car. My lawyer also charges more upfront to file Chap 7 vs Chap 13...774.00 for Chap 13 upfront and 1700 for Chap 7...with 1 income it was hard to come up with that.... I know most of you would of just given it back, it's not been easy for me, trust I've pondered with this since May 2010 and I saw no other way to keep my car....let alone giving this one back and trying to get another....NEAR to impossible when you newly file bankruptcy and no huge down payment. I owe 15,355.00 on my car....so if I can get it cram to 8K...that's a steal!

Also my father filed bankruptcy before he became really ill...he has WAY more debt then me and only pays 235.00 a month with 85% to unsecured....so why would mine be anymore more this his, but I do know everyone's situation is different?

[justbroke]

In a Chap 7 you CAN NOT keep a vehicle if you are behind, and SANTANDER WILL NOT REAFFIRM nor would they MODIFY...

Actually you can if the lender is willing to do a reaffirmation and bring the note current. Also, you can always Redeem through the 722 Redemption option. These are clearly two ways to keep a car in a Chapter 7.

Of course, the best way is to just be current on your payments. I would still not opt for a 36 month Chapter 13, just to keep a car. Has your attorney even talked to you about a 722 redemption?

Also, if you're out of work, and aren't receiving UI compensation, then you can't start a Chapter 13. A Chapter 13 requires "regular" income, and this is precisely why it is primarily known as the "wage earner's plan".

I'm starting to get more concerned that you and your attorney have not come up with a financial decision that will work best for you.

(Also, in a Redemption, it would be "crammed" as well. Just so you know that.)

[sucks2bndebt]

I am currently receiving unemployment, and I know at least 2 other people who have filed Chap 13 with unemployment benefits, and why didn't any of the 5 lawyers I met with not mention this, if it would potentially be a huge problem for me? No I have not heard of the 722 redemption...do you have to be current? If not then I will mention that to my lawyer. Also I don't know if you are aware of who Santander is but just Google them and you will see....REAFFIRMATION is nearly to impossible with this lender UNLESS you are current....I became months behind when I had to move back to my home town and never was able to catch the payments up....once I did get a job I was LAID OFF which you put me further behind....but Citifinancial was willing to work with me.....SANTANDER was not....

[FishersMike]

The post you replied to before JB answered said you had not received unemployment - now this posts says you have -- so I believe there was some confusion and probably thought you had no income..

722 Redemption is for Chapter 7 when you use another finance company to finance the "value" of the vehicle, which is the same as cram down. There is lenders who specialize in this - but interest rates are high. Check the Chapter 7 Forums and you will see lots of posts on it. I believe the biggest lender is U.S. Bank.

[smoothdaddy]

Sorry to hear your case. I have my car financed thru Santander. Im current on payments, but i will not reaffirm the vehicle with them. They want the vehicle back once im 30 days late, so then will I surrender the vehicle. I filed ch7 pro se by the way.

[sucks2bndebt]

The post you replied to before JB answered said you had not received unemployment - now this posts says you have -- so I believe there was some confusion and probably thought you had no income..

722 Redemption is for Chapter 7 when you use another finance company to finance the "value" of the vehicle, which is the same as cram down. There is lenders who specialize in this - but interest rates are high. Check the Chapter 7 Forums and you will see lots of posts on it. I believe the biggest lender is U.S. Bank.

Thanks a lot Mike, yes i did Google the 722, some people have had some crazy experiences with them, but I will check more into it. I just don't want to end up starting over again and with a 24% APR vs my still high 14%, but by all means 14 is better then 24!

[sucks2bndebt]

Sorry to hear your case. I have my car financed thru Santander. Im current on payments, but i will not reaffirm the vehicle with them. They want the vehicle back once im 30 days late, so then will I surrender the vehicle. I filed ch7 pro se by the way.

Thanks so much Smooth!!! Yes the reason I was able to go longer was because Santander just took over Citi's accounts in September, so even though I was already behind according to Citi who was working with me, so technically it was exactly a month by their(Santander's) accounts....they are VERY unwilling to work with you AT ALL! If worse comes to worse I will think about converting to Chap 7 pro se, but so many people have advised against that....so that is something I would have to research thoroughly!