My Situation

[ironman1964]

I quit paying my cc's a few months ago and have managed to save enough ($1500) to at least consider seeing an attorney. The problem in my town is that all the attornies want the money up front ranging from $1300-$2000, even for a no asset simple chpt 7 like mine will be. I would like to save some more money before I file so at least I will have some spending money left over after the attorney gets his, but I may be running out of time since I haven't paid on a couple of my cc's for close to 6 months.

My dilemna is this........I am leasing a ford pickup (since march 2006) and am current with the payments. The problem is the annual registration payment is now due ($550) and combined with the monthly payment due on may 7th ($250), that is almost $800 that the truck will cost me in the next 10 days, which will cut my $1500 savings right in half. I have decided to quit paying on the truck and throw that in on the bk too because I just can't gamble on paying the plates right now. In other words, if I get summoned in the next month and don't have enough money to get a lawyer, its garnishment time for me. I wish I knew how long I had before the cc's come after me, but I realize that cannot be predicted.

My big question is when I see a lawyer and write down all my current expenses, it will leave me with way too much extra monthly income if I am not paying my truck payments, gas, insurance, maintenance, etc. I have no problem meeting my state's mean test, its the extra monthly income I am worried about. Is that a problem or do they go by what I paid in the last 6 months and not the present?

I would rather keep my truck, but if I do it will probably be august before I can save enough to get a lawyer. If I get summoned before then, I am screwed. Also, getting a pt job won't work either as that will leave me with too much income.

[Princesskina]

I quit paying my cc's a few months ago and have managed to save enough ($1500) to at least consider seeing an attorney. The problem in my town is that all the attornies want the money up front ranging from $1300-$2000, even for a no asset simple chpt 7 like mine will be. I would like to save some more money before I file so at least I will have some spending money left over after the attorney gets his, but I may be running out of time since I haven't paid on a couple of my cc's for close to 6 months.

My dilemna is this........I am leasing a ford pickup (since march 2006) and am current with the payments. The problem is the annual registration payment is now due ($550) and combined with the monthly payment due on may 7th ($250), that is almost $800 that the truck will cost me in the next 10 days, which will cut my $1500 savings right in half. I have decided to quit paying on the truck and throw that in on the bk too because I just can't gamble on paying the plates right now. In other words, if I get summoned in the next month and don't have enough money to get a lawyer, its garnishment time for me. I wish I knew how long I had before the cc's come after me, but I realize that cannot be predicted.

My big question is when I see a lawyer and write down all my current expenses, it will leave me with way too much extra monthly income if I am not paying my truck payments, gas, insurance, maintenance, etc. I have no problem meeting my state's mean test, its the extra monthly income I am worried about. Is that a problem or do they go by what I paid in the last 6 months and not the present?

I would rather keep my truck, but if I do it will probably be august before I can save enough to get a lawyer. If I get summoned before then, I am screwed. Also, getting a pt job won't work either as that will leave me with too much income.

I think it's time to make some decisions ASAP!...

When they look at expenses they do look at expenses from the past 6 months or so cause they can't estimate off of expenses that don't exsist yet. What state are u from that all your lawyers want that much to start?!?!

I know I filed Pro Se since I was a no asset case as well and it worked smoothly for me I was going to get a lawyer but then I read threads by other Pro Se users on this board and since I didn't have anything to give up it was a real walk in the park for me.

[CindyLou]

Are you sure that your regsitration is 550? That sound very very high. I would call the DMV and confirm that amount. Usually on leases you pay a sales tax every month in your note and you don't have to pay taxes on the yearly. Its definitely worth checking out. How long do you have left on the truck. It will very difficult to get get another vehicle during and right after BK without a substancial downpayment. If, in fact you do get rid of the truck, then you will get to claim an expense for taxis, public transporation, etc. That amount would be about as much as your truck. But then you would have the insurance payment. My vote is do what you can to keep your vehicle. Also, I hope you do not have that 1500 in the bank. If anyone sues you they can take that money. You know, you could save during and after BK just like you can before. Your expenses are not going to increase. I wouldn't let that be a deciding factor. You may want to check our attorney's in the nearest larger city even if it means a little travel. At least do the consultation. As long as they are in the same state and it close proximity where you live, chances are they have done a BK in your district. Good luck and keep us posted.

[ironman1964]

If you live in Maine like me, then you will understand. The excise tax in Maine is a killer. A $20,000 vehicle will cost you $600 to register. 4 years later it will still be over $400, especially on a 4 wheel drive truck. My friend just bought a chevy avalanche and paid $1200 to register it.

I have also checked on attornies outside of my town but they won't do bk's out of their district. There are 4 lawyers in town that do bk's, the next closest is 50 miles away.

I have no problem giving up the truck, especially with summer coming and the fact that I can walk everywhere I need to go in 5 minutes. I am more concerned with showing too much money after monthly expenses. It won't be a problem if they go by the last 6 month's average. That was what I was wondering. The $400 I spend on that truck monthly will be $400 after expenses if I gave the truck up when you are only allowed no more than $100. If I do keep it, I won't have the money to get a lawyer at all for months. I just need to know that I can still do a chpt 7 even if I give the truck up. If I can't, then I am stuck. I am looking at either chpt 13 or garnishment. I haven't been summoned yet but I know it could happen soon or it may not happen at all. If it does happen, I want to be ready financially to pay a lawyer. The only reason I haven't seen one yet is because I want to have $2000 saved up before I do or else I will be broke.

I thought about doing the bk myself but I have decided against that after a bad experience a friend had in a no asset chpt 7 case.

[CindyLou]

You can retain your attorney now with a small down payment. This will help you be able to get good advice while planning to file. I would say, go ahead and pick one, pay the retainer fee and get some help deciding on what to do with the truck. You are right. Getting rid of the truck could actually be detrimental to your chapter 7 case. Don't do anything until you talk to your attorney.

[ilovemycaitybug]

Wow... that is really high registration. Move to Oklahoma... it's less than $100/yr for a brand new car! They go by the age of the car. I thought that sucked but I guess I won't complain anymore!!!

[SinkingFast]

Ours is kinda like the OP's. There's no personal property tax on vehicles, so they whack you on the registration.

New cars and trucks can be real expensive to license.

Our old beaters run $65-$90 each for tags.

[robivi3]

WOW, here in Fla. it's sales tax once, then 40 bucks a year for my 12 pass van, a one ton.

The entire northeast should just declare itself a socialist republic.