new to board and bk

[cleansafe]

hello
i have been reading the forums for a couple of days now.
my wife and i talked to a lawyer this evening and we plan on filing bankruptcy
not sure if we are going to file 7 or 13.
lawyer is saying that we may be able to file 7.
my history
roughly 70,000 in debt. mostly credit cards and hospital bills.
haven used a credit card in over 3 years. most have been charged off or sold.
the main issue is i have a truck that i make payments on i am current and haven't been late in the year i got the loan. i do not want this to go in to the bankruptcy. the lawyer says it must. i want to keep the truck. the other problem is that i have a co signer on the loan. lawyer stated that i can reaffirm that debt. my question is what will that do to the co signer. i don't want to mark is credit.
thank you for your response and i am sure i will have many more questions in the future

[lrprn]

the main issue is i have a truck that i make payments on i am current and haven't been late in the year i got the loan. i do not want this to go in to the bankruptcy. the lawyer says it must. i want to keep the truck. the other problem is that i have a co signer on the loan. lawyer stated that i can reaffirm that debt. my question is what will that do to the co signer. i don't want to mark is credit.
thank you for your response and i am sure i will have many more questions in the future

Welcome, cleansafe! Glad you found us!

If you file Ch 13, keeping your truck shouldn't be a problem. And about your co-signer - in our situation our adult children were listed as co-signers on the cars we kept in Ch 13. Every lawyer we consulted with before we filed said that as long as we kept making the payments, it would not affect our kids' credit. If for some reason their credit reports did show something related to our bankruptcy, they were to challenge that immediately and get that changed. Our lawyer advised us not to reaffirm any of our cars, and we did not. We're six months into our Ch 13 with our trustee making our car payments, and not a single peep from Ford Motor Company (Ford Credit) about our cars.

If you file Ch 7, then typically you are allowed to keep your car. The only way to make sure that your lender will not go after your co-signer is to reaffirm the loan yourself. This should protect your co-signer. However, if you miss any payments at all, this violates the reaffirmation agreement and the lender is free to go after your co-signer (something I'm sure you want to avoid at all costs).

Be sure to ask your lawyer what is best in your situation. Good luck - keep us posted and come back with questions or just to vent. That's why we're here! Again, welcome!

[SinkingFast]

Great advise from Lrprn.

Also,.......... You want to chat with a couple more attnys. See what they have to say about your situation. Get their points of view on what you can and cannot do.

Maybe this first attny is not the one for you. But you won't know for sure until you talk with others.

[BassBoy]

[CAB_44]

Just wanted to say Welcome~ you've come to the best place for info~
I am new myself and going through this "just starting" phase, but wanted to welcome you!!!!

[cleansafe]

thank you for your kind welcome
the lawyer i have has come highly recommended but i will look at others.
i was also advised to contact the loan company that the truck is through and advise them of my situation and my intent to reaffirm the loan. initiallly i did not want to include the car loan in the bankruptcy but i have no choice.
since i owe the money to citibank financial can any of the credit card companies force me to sell it so they can get a piece of the sale or is citi the only one allowed to decide on the status of the truck since they have the title
thank you again
this is a great site

[CindyLou]

cleansafe, if you don't mind me asking, who is your car financed through. Many of us have already been through this and someone can probably tell you what will happen. What is for sure is that as long as you keep your payments current, no matter which chapter you go with, your co-signer will not be affected!! Make this a priority. let us know about your car loan company and i'm sure one of us can help you.

[cleansafe]

cindy my loan is through citifinancial
my payments are current and have always been on time. im filing for bankruptcy because debt i occurred more then 3 years ago is finally coming back to haunt me. the car is the only thing that i financed in over 3 years. and the co signer is my father in law and i worry about messing his credit up.
thank you again for your reply.
my next question is i got a list of stuff that i need to gather before the lawyer will file. 3 years of state and federal tax returns and 3 years of w2's
i really sucked at keeping records. where can i obtain these documents
any help will be greatly appreciated

[CindyLou]

Ok, so anyone been through BK with citifinancial?? cleansafe, call them and ask. You will feel much better once you know their policy. About the federal tax returns and W-2's...you can get transcripts from the IRS.
Info from www.irs.gov

Requesting transcripts (individuals):

You have two easy and convenient options for getting copies of your federal tax return information--tax return transcripts and tax account transcripts--by phone or by mail.

Request transcripts by calling 1-800-829-1040, or order by mail using IRS Form 4506T (Request for Transcript of Tax Return). We do not charge a fee for transcripts. Allow two weeks for delivery.

Definitions:

A tax return transcript shows most line items from your tax return (Form 1040, 1040A or 1040EZ) as it was originally filed, including any accompanying forms and schedules. It does not reflect any changes you, your representative or the IRS made after the return was filed. In many cases, a return transcript will meet the requirements of lending institutions such as those offering mortgages and for applying for student loans.

A tax account transcript shows any later adjustments either you or the IRS made after the tax return was filed. This transcript shows basic data, including marital status, type of return filed, adjusted gross income and taxable income.

I have used the phone service before and got mine in less than a week!! Your attorney cannot expect you to have w-2's if you don't have them unless you contact each employer and request a duplicate; which they are required to provide. he will have to settle for the transcripts if thats all you have.

[cleansafe]

thank you cindy
i have had my taxes prepared by a tax professional would or should he have a copy of my forms just wondering
thank you

[CindyLou]

depends. my tax guy keeps copies, but it depends. can't hurt to call and ask. In the meantime, go ahead and request from the IRS so they are on the way...it doesn't cost anything to call and request, so can't hurt.

[cleansafe]

thank you again cindy
how about state returns do i need to get them from my state or does the irs handle all that

[CindyLou]

not sure what state you are in, but go to the taxation website and it should say how to do it. You can also call your state taxation board and ask. probably the same type of process as federal.

[cleansafe]

called my tax preparer today and he informed me that he has copies of everything federal, state and w-2's
i will be pickingthose up tomorrow.
my next requirement is a business budget for the last year if i am self employed which i am. but i had no budget, any idea on this one.
thank you again cindy you are very helpful

[CindyLou]

I'll have to punt that to someone out there with a business. but I would guess he is asking for a retroactive account of where you spent your business money, i.e., monthly expenses --