Should we keep it or surrender it?

[zpbk13]

Good morning everyone,

Okay, I need some brutally honest opinions here (okay, not too brutal). Our attorney tells it looks like we will be able to file a 7 instead of the 13 that we assumed we would have to file. Our present concern is two-fold. The first one: our vehicle. We have a 2005 Chevy Equinox that we are approximately $7,000 upside down on. The payment is $433 per month and we owe another 3 years on it. I have a newer vehicle for myself and this is hubby's work car. I mentioned to him that there is a lot we could do with our fresh start and $400 per month. We could get him a "work car" - not pretty but something functional and do oh so much with that money. Or we could make the other 36 months of payments on this car that hubby has been taking very good care of and probably would not have to worry about repairs and/or it breaking down on him as he has a fairly long commute. Opinions?

Second: our (okay my) treasured and beloved Disney timeshare. I love love love Disney but I'm a 40-something year old woman and if nothing else this bk process is teaching me it's not about things; it's about peace of mind. If we are truly going to have a fresh start, part of me (about 75%) feels we should get rid of it. Hubby doesn't care. He never liked our Disney trips and is probably secretly happy I am considering getting rid of it. Our attorney emphatically keeps stressing that the trustee does not want it and it's ours if we so desire. I desire. But I know realistically we need to let it go. It's part of our past that has led us to this place but guys I will miss my timeshare if I have to give it up. As I type this, I realize what a whiner I sound like. I just need some opinions, kicks in the butt or whatever you have to share to totally bring me to my senses. My head says dump this sucker while you have the chance to walk away free and clear and my heart says don't abandon Mickey! Just need some perspective.

Thanks in advance for the wisdom that I know will be forthcoming!

[Seeker40]

One option with the vehicle is to do a redemption. This basically means you can pay the bank that has the car loan the market value of the car. For example, if you have a vehicle worth $10,000 and you owe $15,000 you can pay the bank $10,000 and keep the car. This is also true with all secured property, but its only available under CH 7.

[Floridagail]

I would have my attorney or paralegal to work with car lienholder to change terms as you are upside down. Recomfirm a smaller amount.
My attorney told me they would rather do that than get the car back. I was upside down also. GMAC would not work with me because I had co-signer, but they may work with you worth a try. I would keep car if at all possible. Another cheap Junker may be
trouble. I would definately give back timeshare this is a chance in lifetime to be
debtfree. ALso check into not confirming car,if you are current, keep paying current. I am sure other will have more suggestions. Just my opinion.

[zpbk13]

That is interesting. I thought this option was only available under a 13. We talked about that option with our attorney - isn't this the same as a cramdown? I didn't think we could to this under a 7. I know the car is worth about $9,000 and if we keep up the payments, we will pay out about $16,000. If this is an option under a 7, then I will speak to both my attorney and husband about it. I think it extends your payments, right?

About the timeshare - floridagail that is what I was thinking. This is a chance for a fresh start. This is a chance for a fresh start. This is a chance for a fresh start. I keep saying that to myself. I really do want my life back. I want to be debt free. I don't want years and years of maintenance fees and we still have a mortgage on the property with three years left of those payments.

Thanks seeker and floridagail for your advice. Please keep it coming!

[StartingOver08]

Get rid of the timeshare.
Get rid of the truck.

Get rid of every monthly payment you can in your Ch 7. Start from zero - you will be amazed at all the little payments that have been chipping away at your income. And $400/mth is not a little payment either! JMO. Take advantage of your fresh start.

[fltoo]

Ditto.

This is about getting rid of debt and getting rid of things that you don't need to get a fresh financial start.

If you are not willing to look at debt incurred by wants as unncecessary, then the fresh start is not going to help.

[zpbk13]

Startingover and fltoo - Wow! You are both so right, in addition to the other comments. That is why I came here. I was lurking on a Disney timeshare site that I used to frequent and it builds up the desire in me even more to keep it. I knew if I posted there that the answer would be to keep it at all costs but I do want a true fresh start. I would like to start from zero. I admit hubby and I are concerned that if we get rid of his car, then we could find ourselves saddled with expensive repairs on an older vehicle but I'm sure it will not cost us almost $5,000 a year and that is what the current note will cost us.

After this process is over, I want to feel like a butterfly coming out of my cocoon. I want to be truly free and not bogged down with expenses. It's easy to justify keeping "things" or "toys" but really nothing compares with being given a fresh start so that is what I am going to concentrate on. I knew coming here for advice was the right way to go!

Edited to add: By the way I love the comment about looking at debt incurred out of wants as being unnecessary. I am so used to being like a little kid and getting whatever I wanted because the credit was easy. This is a good wake up call. I don't want to squander this chance. Thanks again guys!

[poorold]

a semi brutally honest opinion:

you said

"I mentioned to him that there is a lot we could do with our fresh start and $400 per month. We could get him a "work car" - not pretty but something functional and do oh so much with that money."

in my opinion, the above comment and your continued longing for your timeshare indicates that you "sort of" recognize your situation, but don't quite grasp the reality of it yet.

You are on the right track though and posing the questions you did is the first step towards that understanding.

The past is gone. period.

Now, create your future.

and you have a little over 20 years to retirement...if you are lucky.

Figure out that plan and I think you will more easily prioritize your spending.

[christine12]

Awww... I feel for you, really! We have a disney timeshare too, 160 pts at Animal Kingdom Lodge. We are giving it up, begrudgingly, but I know it is the right thing to do. Someday down the line, I will probably buy again, CASH and on resale and not pay such an inflated price and have to make payments every month. It will have to be at such a time when I can afford to pay cash for plane tickets, park tickets, and spending money though, no more charging up vacations for me. It is funny, the more I consider plopping down that much money out of my own pocket (and not on a cc) the less and less I think I want to go to WDW as often as we had gone (every year). It still hurts though! LOL Some of our best memories with my in-laws are at WDW. I think you know what you need to do, don't go through all of this stress and get a "fresh start" only to be saddled with debt you may not be able to even use - remember in the cost of the vacation the room is only a small fraction. PM me if you want to cry together privately - LOL.

[Clover329]

Get rid of the timeshare.
Get rid of the truck.

Get rid of every monthly payment you can in your Ch 7. Start from zero - you will be amazed at all the little payments that have been chipping away at your income. And $400/mth is not a little payment either! JMO. Take advantage of your fresh start.

I agree completely. A "fresh start" is not really fresh if you still have to worry about car payments, timeshares and household income. We are in a recession. Everyone is downsizing and realizing that the "fat" lives we've been living has gotten us into MAJOR trouble.

Start Fresh by going "minimalist".

[zpbk13]

poorold - you are right. Mentally, I know I am not "there" yet. That is why I posted here. I knew you all would knock some sense into my head. I want to become a lean mean debt free machine and I will not get that way if let sentiment or entitlement stand in the way. Thanks for the reality check. I also admit I was never a person to live by a budget, more by the seat of my pants and my credit card limits so this is a new and exillerating experience for me!

christine - our home resort is Hilton Head but we love SSR best. We have owned (or should I say we have been making mortgage payments) since 2001. Took the 10 year loan route. Ouch. Still have three years left on the loan. Some of our best memories are from trips to both Disney and Hilton Head. Makes me smile just to think about it. Know something? I even put the deposit for DVC on a credit card that I paid off about 2 years ago. Just thinking about that makes me cringe. You are so right that the accommodations are only a small part of the price and my husband doesn't like Disney all that much anyway. Getting him to Orlando is liking pulling teeth so this is a good thing in many ways. I will definitely pm you if I feel like I need to cry on someone's shoulders and you can do the same.

Clover - I love your comment about going minimalist. Short, sweet and to the point. I do want to simplify my life. Thanks for sharing!

[fltoo]

Very off topic!!! I am going to vent a pet peeve I have.

I live extremely close to Busch and Disney World and would never go there and only took my kids once when very little. I could not take another visit.
There are so many beautiful places to see the "REAL" thing in this country.

Why see something that "looks" like a real mountain when you can go see a real mountain??? I took the kids to every single Civil War battle place and botanical gardens. They still have nightmares from me making them stand in front of those little poles with the plaques attached until they were done reading it. LOL

Disney is all plastic. Take this opportunity to take a trip somewhere you would never dream of going and enjoy the natural beauty in this country.

My kids still make fun of me for dragging them all over the country, but they have wonderful memories and are glad for the extra education it provided.

It is not a "small world." It is a huge world with plenty to see.

[zpbk13]

I am so so so glad to see that you just posted this. I actually have a list of places I want to go but owning the timeshare was keeping the "golden handcuffs" on me and my family. I want to see the real Hawaii and not just stay at the Poly; I want to see the real Eiffel Tower and not a miniature at the World showcase. I have always wanted to take a Donkey to the bottom of the Grand Canyon and see the "adult" Disney which I understand is that wonderful world of Las Vegas and so many other places in this country and beyond. I know we will never do that if we continue to keep giving the Mouse our money. Disney will always have my heart but I can no longer afford to give Mickey all my money. Thanks so much fltoo. And by the way, I am jealous that you live so close to Disney!!!

You guys have no idea how glad I am that I got up enough nerve to make this post this morning. I am feeling better and better about what I know we need to do.

[fltoo]

Aw, come visit any time at all. I will even take the trip to Disney with you!

[zpbk13]

That is a sweet offer. I just might have to take you up on it. We can meet in Epcot by the dancing fountains. I'll be the crazy lady with the lanyard full of pins, Disney tee-shirt, matching socks and the pink Minnie mouse ears - and yes I wear them everytime I go. See why hubby would rather die than be seen in public with me?

One more good thing I thought of. Now that I have pretty much decided to give up the timeshare - I can stay at the Grand Floridian again!! Of course, post discharge and with cash only!