Advice needed

[YankeeFan]

[OhioFiler]

Bummer you're a Yankee's fan! Go Tribe!

You should stop paying for anything you intend to give up. ESPECIALLY the house. You can live rent free there for several months while you plan your escape from Florida.

Do you have equity in the the 2 cars? I don't know the FLorida exemptions but you may be able to keep the cars if you can exempt them.. If you're upside down on them I'd let them go to the CU in the bankruptcy and buy a cheap car until you're on your feet again.

If you keep cash in that that CU I'd get it out of there soon.

Read the threads here. Tons of valuable information you won't find anywhere else. There are many Floridians posting on here.

Now, back to this Yankee's thing....Can't you see how overspending like Steinbrenner does isn't a wise thing to do?

[Trixie007]

We also moved out of state and let our house go (2 actually) - we didn't inform the lender, just left. The issue with credit union's usually comes down to cross collateralization - read your agreements and see if there's a clause in there for that.

[YankeeFan]

Bummer you're a Yankee's fan! Go Tribe!

You should stop paying for anything you intend to give up. ESPECIALLY the house. You can live rent free there for several months while you plan your escape from Florida.

Do you have equity in the the 2 cars? I don't know the FLorida exemptions but you may be able to keep the cars if you can exempt them.. If you're upside down on them I'd let them go to the CU in the bankruptcy and buy a cheap car until you're on your feet again.

If you keep cash in that that CU I'd get it out of there soon.

Read the threads here. Tons of valuable information you won't find anywhere else. There are many Floridians posting on here.

Now, back to this Yankee's thing....Can't you see how overspending like Steinbrenner does isn't a wise thing to do?

The cars are upside down, one of them is worth $10k according to Kelly BB trade-in value and owes $16K. The other one is worth $11k trade-in value and owes $20k.

My insistence on keeping the cars is that they will be necessary for both of us in our job search. Since I don't know how long it will take to get a job, I'd rather keep making the payments (or rather have my family loan me the money to make the payments) than try to get them to front me several thousand to buy another two cars.

We are basically completely out of cash, so I will be depending on family to help out after the end of this month. We have enough to eat for the next month or so. My unemployment benefits are $898 a month, but I'm using that to keep up our medical insurance through COBRA which is $881 a month. Which is another thing that sucks, the "spendulus" bill had provisions to subsidize 65% of people's COBRA payments, but it applies to everyone who was laid off after Sept. 1, 2008...if you were laid off before that...like me...you're f****d. So much for "change".


BTW, I won't hold it against you that you're an Indians fan...now if you were a Red Sox fan, that would be another story...

...and I agree about the Yankees overspending...but that was not my case... We've always lived within our means...but being out of work for 8 months will destroy anyone.

[OhioFiler]

The cars are upside down, one of them is worth $10k according to Kelly BB trade-in value and owes $16K. The other one is worth $11k trade-in value and owes $20k.

My insistence on keeping the cars is that they will be necessary for both of us in our job search. Since I don't know how long it will take to get a job, I'd rather keep making the payments (or rather have my family loan me the money to make the payments) than try to get them to front me several thousand to buy another two cars.

We are basically completely out of cash, so I will be depending on family to help out after the end of this month. We have enough to eat for the next month or so. My unemployment benefits are $898 a month, but I'm using that to keep up our medical insurance through COBRA which is $881 a month. Which is another thing that sucks, the "spendulus" bill had provisions to subsidize 65% of people's COBRA payments, but it applies to everyone who was laid off after Sept. 1, 2008...if you were laid off before that...like me...you're f****d. So much for "change".


BTW, I won't hold it against you that you're an Indians fan...now if you were a Red Sox fan, that would be another story...

...and I agree about the Yankees overspending...but that was not my case... We've always lived within our means...but being out of work for 8 months will destroy anyone.

Do not reaffirm the car loans. Since you are planning to move to another state it will likely take awhile for the lender to come and get the cars(especially if no one knows where you are!). In the meantime, drive the cars and save your car payments to use as a downpayment for a used $11,000 car you will owe only $8,000 on after your downpayment. You won't need 2 cars until you're both employed.

There is no good reason to file bankruptcy and keep a debt that is that much higher than the equity in the vehicle.

[StartingOver08]

One of the most difficult aspects about filing BK is learning to look at "things" (like cars) a little differently.

You would be amazed what vehicles are out there right now for under $7000 - and I am not talking junkers either. I got a Mountaineer SUV 7 seater for $6400 and it looks like new. Yes I have to make payments of $265/month for 16 months total (14 left now), but it beats the $651 caddy payment I was making! I did reaffirm a small payment, negotiated downward on my husbands car, but then again I only have 15 payments left. If they will knock down your principal to market value and reduce the payments to something reasonable - try it. Otherwise just surrender the vehicles, IMO.

Don't carry those two car debts out of your BK by reaffirming, they are too upside down and will make any recovery post BK hard on you. I am not jumping on your case. Sometimes we have to do the hard thing in order to make it long term.

[YankeeFan]

I understand what you all are saying about giving up the cars and then trying to get a car post BK with the money I've saved on car payments....the problem is this:

I'm not making any money....I was planning on begging and borrowing from family members to keep the payments up for a month or two at the most until I get a job and then continue making the payments on my own. If I had income coming in, then yeah, I would understand what you are suggesting, but right now I have nothing coming to save for another car. Does that make sense? or have I completely lost my mind already?

[YankeeFan]

One other question? What the heck is a "ride-through"? I've seen it mentioned in several threads but not sure I understand exactly how it works...

[OhioFiler]

One other question? What the heck is a "ride-through"? I've seen it mentioned in several threads but not sure I understand exactly how it works...

If you're not working why bother filing BK now? You're upside down on all the assets you owe creditors for. I'd wait it out for awhile.

[YankeeFan]

If you're not working why bother filing BK now? You're upside down on all the assets you owe creditors for. I'd wait it out for awhile.

I wanted to do a BK now because I could easily pass the means test on my $898 a month unemployment benefits. Once I start working, I'm not sure I will be able to pass the means test. Also, I read somewhere that if you file BK while current on everything, the effect on your credit report is not as bad as if you let everything slide to charge offs and THEN file BK. ????

[YankeeFan]

I did some digging and found my CU's paperwork for the auto loans. Both of them have "acceleration" clauses in the fine print...basically if I file for BK while current, they declare the entire outstanding balance due and payable in full immediately, without notice and the CU is entitled to immediately repossess / recover its collateral without notice. Does this mean they can repo the cars as soon as they get notice of the BK?

[OhioFiler]

I wanted to do a BK now because I could easily pass the means test on my $898 a month unemployment benefits. Once I start working, I'm not sure I will be able to pass the means test. Also, I read somewhere that if you file BK while current on everything, the effect on your credit report is not as bad as if you let everything slide to charge offs and THEN file BK. ????

Don't file, stop paying COBRA. You're judgement proof right now. If you incur medical bills between now and when you file you can include them in the BK. I'd file the day I find a new job with benefits.

[whattodointx]

Great advice OhioFiler! I would stop paying cars, mortgage, cobra and start saving up for the bk, the move and the new car.

[YankeeFan]

Given my current situation as described in the original post, does anyone care to venture a guess-timate of how long the whole Chapter 7 process will take from the date of filing until dischage & close? I am in the Florida Middle District (Tampa Bay area).

[YankeeFan]

OK I know it's 3:15 AM, but I can't sleep because of all this and I keep coming up with more questions.

As I mentioned in my post, I'm going to another state to see if I can find work there. I already have a lead on a position, but I'm trying to get "in the door" to get an interview. I won't "officially" relocate until I have a firm offer (in writing). If I'm considering filing Chapter 7, I assume I would file in my current home state (FL) and then just come back to attend the 341 meeting?

Also, let's continue the hypothetical and assume (fingers crossed, knock on wood, rub rabbits foot) that I do get a job offer. Will the fact that I will be now making much more than the $898 a month of unemployment benefits jeopardize the whole "means test" thing and force me into a Ch 13? Will I even have to tell the court that I have a new job and now my current income is 10 times what it was when I filed (I hope )? Doesn't the means test look at just the past 6 months starting from the filing date?