What's the best option

[hate2file]

Well my wife lost her job when she was laid off back in December. I'm still working in a steady job. Needless to say things have gotten tight, it appears if and when she does get a job it will be considerably less than she was making before and we just can't keep up with $72,000 in unsecured debt plus the house, vehicles and toy payments. Our lawyer recommended Chapter 7 but we just barely qualify on the means test. I don't want to take a chance at losing the house or vehicles we need them to get around as we live out in the country. I guess my biggest question is I have a 5th wheel rv that's worth about $8,500 and we owe about $8600 on it, I also have a 4 wheel ATV that I owe $6200 on but it's valued at about $4500. Do you think I will have any luck protecting the trailer and 4 wheeler? I can do without the trailer but I use the 4wheeler around the house for yard work (nearly 2 acres to take care of) as well as for fun. Once we file and my wife finds a job we will be fine with the secured debt payments even if she is making half what she was just so long as the unsecured is cleared.

Or would a Chapter 13 make more sense for us?

[keepmine]

If at all possible, file a Chapter 7. Stuff like RV's and 4 wheelers can eventually be replaced if they cause a problem with the trustee. What did your lawyer say about keeping the toys?

[soleprop]

do some reading on 'cramming down' these secured debts. that might help you out too.

[keepmine]

do some reading on 'cramming down' these secured debts. that might help you out too.

You can't cramdown secured debts except, in some limited circumstances, unless you re in a Chapter 13.

[soleprop]

You can't cramdown secured debts except, in some limited circumstances, unless you re in a Chapter 13.

yeah, chapter 13 was kinda where i was headed with that one ;)

[JRScott]

You don't have any equity in either since you owe more on both than they are worth. Therefore you could keep them I believe in a Chapter 7. I would not sign a reaffirmation agreement though, just try to do a ride through.

[TX Bluebonnet]

I have a camper that our attorney said we would need to state that we would surrender it because it's considered a luxery item. I asked if we could at least try to reaffirm it and he said no, that the trustee would not accept it. We were hoping to keep the camper, but we've since gotten used to the idea that we won't have it much longer.

[HHM]

Correct, you don' want to (and in most districts, they won't let you) reaffirm non-essential vehicles, ATV, Campers etc.

If you can afford to keep making payments, odds are the lenders are not going to repo.

[TX Bluebonnet]

I forgot to mention my attorney's reasoning for why I wouldn't be able to reaffirm or do a ride through with the camper. He said the trustee would say if I could afford the $157 payments each month for a luxery item then he'd make me surrender it use that monthly payment of $157 of what would now be considered disposable income to pay towards other creditors, which in effect would put me in a chapter 13. I understand what my attorney is saying, just not sure I'm stating it very clearly.

[hate2file]

The other side of it is I suffer from IBS and when my bowels say I have to go I only get about 5 minutes to get to a bathroom. This is one of the reasons we got a trailer with a bathroom so I can travel. Will they take that into consideration? It's either that or stop in the middle of nowhere and hope I can find a tree or just stop travelling completely.

[JRScott]

Well you could raise a medical concern over it. Might help to get a paper from a doctor stating your condition if its brought up. You might ask your lawyer about that too. I don't know what else to say, I hope you work it all out.