Question About Vehicle, Please Help.......

[gizmoviki73]

Hiya everyone! I have been floating all over the internet, looking for one answer and I have not found it yet. So, I figured I'd try here.

My husband's family business closed, he's been out of work for two months, with no job in sight. My grandfather purchased him a truck, on the terms we'd pay it back, after he was working again. My grandfather is on the title, registration and it's on his insurance policy(with husband). We owe my grandfather $3,500, which is pretty much what it's worth. We live in Florida and I don't know if it's safe. He didn't go on title as a "lien holder" because he trusts us and he's done things like this in the past for us. We're affraid they'll take it, so we'll have to pay for a truck we just got and have no transportation. And I work 45 minutes away and no public transportation. Can we go put a lien on it before filing or will that be fraud?

We're filing chapter 7, our house is in the beginning stages of foreclosure, due to loss of income. We are giving the house back, because there are NO jobs in our area, not even McDonalds.

Thank you for any help and if you need more info, please just ask me.

Viki

[CATCHMEIFYOUCAN]

you dont actually own the truck, your grandfather does, you cant really list it as an expense, you would have to list your granfather and there is a good chance if you are in a 13 you probably would have to pay him outside the bk. unfortunately i dont think this is an expense you can deduct from your bk, but than again more opinions will jump in.

best of luck, catchmeifyoucan

[lrprn]

Welcome to BK Forum - glad you found us and decided to post!

We need a little more information to help you sort things out...
- What is your comibined income for the last six calendar months?
- Do you have children or other adults living with you?
- Do you have other assets besides your car that you want to protect?
- Is your husband's name on the car loan? Is your name on the car loan?
- Is your husband's name is on the car title? Is your name on the car title?
- Do you have the $3500 loan from your grandfather on paper, signed, and witnessed?
- Do you know that you will have to include the $3500 loan from your grandfather when you file? (although you can choose to pay him back after your case is discharged)

Again, welcome. Once we have the answers to these questions, we can help you sort things out about car exemptions, etc.

Keep posting questions - we'll help you figure things out if we can.

[gizmoviki73]

Welcome to BK Forum - glad you found us and decided to post!

We need a little more information to help you sort things out...
- What is your comibined income for the last six calendar months? (He's gotten workers comp of $326 a week since August, now switching to unemployment, which drops down to $275 a week, I make an average of $400 a week working fulltime.)
- Do you have children or other adults living with you? (2 kids)
- Do you have other assets besides your car that you want to protect? (Not really, everything we own is old or from a garage sale, no real jewelery or anything.)
- Is your husband's name on the car loan? Is your name on the car loan? (No loan, grandfather paid cash.)
- Is your husband's name is on the car title? Is your name on the car title? (Husband is 2nd on title & registration and listed as a driver on insurance.)
- Do you have the $3500 loan from your grandfather on paper, signed, and witnessed? (No, just verbel, he's done stuff like this before for us.)
- Do you know that you will have to include the $3500 loan from your grandfather when you file? (although you can choose to pay him back after your case is discharged) (Yes, we were going to include this on the paperwork, but still pay him, since he's my grandfather.)

Hope this helps. It's a 1997 Ford F150 standard cab with 110,000 miles on it. Nada says about $5000 for worth, that's why I'm scared.

[gizmoviki73]

Great, reading more, may not lose truck due to grandfather being first on title, but will lose income tax refund in February. We're already losing our house, which I'm to assume we'll have to move out when bankruptcy is discharged, but if they take refund, we'll be homeless too! We were going to use refund to move, now I'm sick to my stomach. I'm lost and have no idea what to do.

[BassBoy]

Even thought this thread is in regards to a vehicle, you stated that you will be losing/surrendering the house, so I wanted to addresss this. The lender will have to go through the foreclosure process and you don't have to move right after you're discharged. It takes some time to foreclose, depending on how long the process usually takes in your state, which I believe is normally 180 days in Florida.

[gizmoviki73]

Even thought this thread is in regards to a vehicle, you stated that you will be losing/surrendering the house, so I wanted to addresss this. The lender will have to go through the foreclosure process and you don't have to move right after you're discharged. It takes some time to foreclose, depending on how long the process usually takes in your state, which I believe is normally 180 days in Florida.

We already got the first set of court papers, something where I'm to write a response within 20 days. We tried working with Wells Fargo, but they just don't care!!! We decided on bankruptcy just within the past 2 weeks, but now I'm worried about truck, refund and being homeless. I think it's time, for us to go see a lawyer for free consult, maybe get a better grasp on things. But then again, can't afford one, so I don't know how much it helps. We were hoping filing, would slow down foreclosure, but doesn't matter if they will take all out money anyways. We planned on moving out of state, so we have to file before than or wait 2 years, right? And 180 days is from when, first missed payment or first set of "official" papers, I can't find a good time line anywhere. Thanx all!

[BassBoy]

In order to keep the flow of the thread, we should have this discussion in a seperate thread.

[keepmine]

First thing I'd suggest is identify the most pressing problem and that is, lack of income. You and your husband need to get some kind of job right now. Bk is a waste of tiome and mosny if you can't support yourself in the process. Delay filing until you have your refund . Stop paying alldebts you wish to discharge aand use that money for living expenses and a lawyer.
You can file in your new state. You just have to use your old states exemptions until you've been a resident of the new state for 2 years.

[gizmoviki73]

Thank you all. I guess I should explain our situation more, since my thread is going all over and I'm very sorry.

I'm working fulltime, been here almost 6 years. Hubby only out of work, due to bussiness closing. Which he has worked there 15 years and that's all he knows. Plus, in our area of Florida, ALL construction workers are out of jobs, so there are no "basic" ones to even find. So when our income dropped $600 a week, abruptly, the house payment could not be made. We like most, made mortgages, empty promises, etc. We traded in both our vehicles and got one, MAJORLY upside down, but only in grandfathers name, so I can't claim that at all. I work 45 minutes from home (bought home close to hubby's work, since he was one day going to own part of it). My grandfather loaned us the money to buy hubby truck, so he could look for work, junk on the side and help with kids, so I missed less time at work. We decided on bankruptcy and moving out of state, for a fresh start. We don't know how long we have before we lose house, hoping filing would delay it till tax time. But, now I read they'll take our refund and our truck. I always thought, they couldn't leave you without a vehicle, especially with 2 kids? Plus, our refund will be mostly credits this year, since income is half of last year.

I think it's time to go see a lawyer! I'm affraid, if we wait to file after refund, we'll still be homeless, because the foreclosure will continue. Even if we resell the truck to pay grandfather back, we still get in trouble. Seems we're in an endless circle now and I WANT OUT!!!

Thanx for listening to me problems!
Viki

[keepmine]

First of all, your husband needs a job of some sort. WalMart, Target,Macdonalds,etc. You need some money now. Stay in the house as long as possible. Don't file until you get and spend any refund. Is it possible to move in with family for awhile ?
Don't jump the gun. Set this thing up righ in order to maximize your finances. Stay in the house as long as possible . In the meantime, get husband to work putting in applications for something and start working on plan B-a place to stay in case you are evicted prior to receiving the tax refund.