Husband offered new job with benifits and only need 1 car now

[MaxedOut]

We are in a delima, we filed yesterday, Today his old job called to offer him his old pisition back. He really wants to take this because the job he has now has no beneifits. He is actually working 2 jobs but if he takes this one he will only need to work the 1 job. We would now only need 1 vehicle because they provide him with one. so I would want to turn my truck in since I am so upside down in it.


The truck payment was figured into our means test to qaulify us for 7 but the income would now change since he would no longer be working 2 jobs it would be a little lower but the benefits is what we are after.

our son has type 1 diabetes he is 11 has had it since he was 5 he has been on Florida KId Care so far but my fear is when they ask for pay stubs this year to re-qaulify we will no longer qaulify.

With this job change he will have group health and my son will be covered from day 1.

This change is something we really need for future sake.

will it create problems to change jobs and add vehicle to the mix now that weve already filed??

THanks in advance....

[JollyGG]

What fantastic news. Congratulations.

You seem to have two main questions here. I'll try to answer them 1 by 1.

1. Will hubby's new job change things in the bankrutcy. Well technically it shouldn't since your bankruptcy estate is set the day you file. However, some trustee's have been know to ask about any changes to income since filing. You best bet here is to either delay the start of the new job until after the 341 (then nothing has changed and you can honestly answer that it has not), or except the job start and wait. Not all trustee's ask this question. Don't volunteer the information unless asked. If you are asked just say yes our income has gone down slightly due to hubby excepting a new primary job and quiting the second job. Keep your explination short, simple and to the point. Since your income won't be going up it shouldn't really effect your filing at all.

2. The truck and surendering it. Just don't reafirm. While you indicated an intention to reafirm. That's all it was was an intention. Things change. You can either do one of two things once you decide not to reafirm. Keep your payments current until after your discharge and then surrender. Or stop payments and wait for them to reposess it. Keeping up payments is most likely to keep you under the trustee's radar. But either option should work.

[MaxedOut]

I'm confused if I keep payments current till after dischard then turn in truck, how will I not be sued by bank. Should the truck be included to be discharded also?

I have no idea how any of this stuff works please bare with me.
Thanks for your response

[JollyGG]

I'm confused if I keep payments current till after dischard then turn in truck, how will I not be sued by bank. Should the truck be included to be discharded also?

I have no idea how any of this stuff works please bare with me.
Thanks for your response

Okay. Since you indicated in your petition that you intended to reafirm the truck. The lender will send you reaffirmation paperwork. All reafirmation are volutary. What a reafirmation does is it says that you agree to continue to be legally responsible for this debt. Technically there are three choices in regards to secured debt - reafirmation (sign forms agreeing to be held responsible for the debt that are then filed with the bk court), surrender (give the vehicle back), or redeam (buy the property back).
What you will try to do is what used to be called a ride-thru under the old bankruptcy law. What happened then was you had the option of keeping the property as long as your payments were kept current. However, since this debt was dicharged in bankruptcy and no reafirmation was signed the lender only has the right to collect their debt on the property, you cannot be held responsible for any deficiency. However, when the laws changed this option was eliminated. But many lenders are still unofficially allowing it. Of course they would prefer that you keep paying. It costs them money to reposses a vehicle.

So what happenes in an unofficial ride through is you just never sign the reaffirmation paperwork (perhaps you could say with hubby's new job and lower paycheck you changed your mind if pressed). You keep you payments current and usually you keep your truck. In your case once the bankruptcy is done you inform the bank that you don't want the truck anymore and ask them to come and get it. They have the right to come and get the vehicle, but not the right to sue you.

As long as reaffirmation papers were not signed and filed your debt on that vehicle was disharged and they cannot sue you for any deficiency.

[MaxedOut]

Thanks so much for answering.

I had no idea this is how things worked. So basically both our vehicles are entered into BK unless we reafirm them??? is this correct? Also he will not be starting other job until 2nd week of April. We just filed and don't have a 341 date yet, hopefully soon.


Thanks lot of great info