Ok, haven't filed yet and probably won't for several months. Will probably have to file Chapter 13 due to income.
We currently have 4 vehicles financed, two each with different credit unions along with Visa's at each one. From what I read in the loan docs, they both have cross collateralization clauses.
At Credit Union #1, we have a credit card, balance about $7k. Vehicle #1 has been financed for about 32 months and has a balance of around $7800 at $400 month. It has a book value (trade-in) of around $13k. Vehicle #2 has a balance of $6k, payment of $147, trade-in value of $8400 loan is about 4 months old.
At Credit Union #2, we have a credit card with balance of around $14k. Vehicle #3 has a been financed for about 7 months, balance $11300 payment of $227. trade in value $9500. Vehicle #4, 2 months, $158 month, balance $5423. Value is tricky. A classic vehicle, only has 74,000 miles, 1985 Nissan 300zx turbo. KBB doesn't value classics. NADA has wide swing in retail (no trade value listed) of between $3000-7200. Originally the credit union would only finance low retail, but then agreed to average retail. Purchase price was about $1500 over average retail with taxes, etc.
My question is, assuming a Chapter 13, if given a choice or decision and based on amount of unsecured, I would be willing to give us Vehicles 3 & 4 if necessary. We can live without them and eventually could save enough to buy a used Civic for transportation. Would this be the best move? In that we have equity in vehicles 1 & 2 and owe 1/2 the amount of unsecured, I am thinking this would be a better move but just not sure how it all plays out.
We currently have 4 vehicles financed, two each with different credit unions along with Visa's at each one. From what I read in the loan docs, they both have cross collateralization clauses.
At Credit Union #1, we have a credit card, balance about $7k. Vehicle #1 has been financed for about 32 months and has a balance of around $7800 at $400 month. It has a book value (trade-in) of around $13k. Vehicle #2 has a balance of $6k, payment of $147, trade-in value of $8400 loan is about 4 months old.
At Credit Union #2, we have a credit card with balance of around $14k. Vehicle #3 has a been financed for about 7 months, balance $11300 payment of $227. trade in value $9500. Vehicle #4, 2 months, $158 month, balance $5423. Value is tricky. A classic vehicle, only has 74,000 miles, 1985 Nissan 300zx turbo. KBB doesn't value classics. NADA has wide swing in retail (no trade value listed) of between $3000-7200. Originally the credit union would only finance low retail, but then agreed to average retail. Purchase price was about $1500 over average retail with taxes, etc.
My question is, assuming a Chapter 13, if given a choice or decision and based on amount of unsecured, I would be willing to give us Vehicles 3 & 4 if necessary. We can live without them and eventually could save enough to buy a used Civic for transportation. Would this be the best move? In that we have equity in vehicles 1 & 2 and owe 1/2 the amount of unsecured, I am thinking this would be a better move but just not sure how it all plays out.
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