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Have I messed up? The more I read the more confused I am.....

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    Have I messed up? The more I read the more confused I am.....

    My fiance (wedding date of Nov. 7th) and I have decided to file Chapter 7 but have not met with an attorney yet (will call 1st thing Mon. to set one up).

    I am mom to twin girls and he is dad to twin boys. We have custody of all children, so we are a family of 6 living in Alabama. The boys are disabled and both of them receive SSI benefits when combined is $1213.00 a month. The combined totals should really be $1348 but we had a financial review last April and are having to payback some money because we made too much money for a month or so (we were self employed).

    Last year we were self employed health insurance agents and were paid commissions. Starting January of this year my fiance started working another job getting paid $550 as contract labor (he will soon go on W-2's and get a raise). So right now he is bringing home $2200, but that is not verifiable. I have been a stay at home mom but the last 2 weeks have worked where my fiance works helping out since the office manager was caught embezzling money (as of now, I am just working under the table).

    We have a 2008 Nissan Armada and owe $36,214. The KBB value for private party is $22,890. I am the primary on the Armada and my fiance is the co-signer.

    I have between 15,000 - 20,000 in cc debt and other miscellaneous debt like old cell phone accounts, etc. And I also have around $45,000 in student loan debt.

    My fiance only has about 5-7,ooo in cc and misc. debt.

    Oh another point to make is that the Armada is the only vehicle that we have right now. We did have a 2008 Nissan Titan but it was a total loss in an accident and luckily we had gap coverage and it was all taken care of.

    We have been late a few times on the car loan but it was caught up until last month. The payment was due May 26th but we let it fall behind because we knew we were planning to file . We have stopped paying credit cards for both of us.

    Should we both file and not reaffirm the car (don't think Regions Bank will renegotiate the terms.....(this is based off of reading someone else recent experience with Regions Bank). Not sure about the reaffirmation. I would like to keep the car if we could renegotiate, it is perfect for our family is in great condition, etc. If not and if we plan on giving it back how would we get another car?

    Or should we catch up the car loan and then just me file since I owe a lot more debt then my fiance. Since he is the second person on the loan would it all just be in his name and us keep the truck and then catch up his credit cards. We are paying $720 a month on the truck and would have no problems paying it and everything else if it were not for the credit cards. We are renting his father's house for the amount of the mortgage which is $1036.00. If only I filed and he didn't how would I calculate my expenses? I am SOOOOO CONFUSED!!!!!

    Also will his childrens ssi benefits be affected if he filed? We also receive food stamps since they are receiving SSI.
    Will our upcoming marriage affect filing?

    I know I would not be able to handle the anxiety of riding through the car loan.

    Any suggestions are greatly appreciated!!!!

    P.S.: After reading over my post I realized what other people may think. Here we are with new nice cars, working, receiving ssi and food stamps and it all sounds horrible. But I can assure everyone that everything is totally legit. The financial review required all information for both me and him (even though we are not married) and all the children even though only 2 are disabled (and they are really disabled, both in special eduction they are 6 and one of them is still in diapers, does not walk or talk and is still fed through a feeding tube). Also I guess living in Alabama makes a difference also. I just wanted to clarify before anyone judged based on some of our circumstances.
    Last edited by maajick; 06-13-2009, 11:01 PM.

    #2
    If you want to keep the car you will need to have it caught up before filing.

    I assume you are all living together.

    I'd discuss with the lawyer the various options, indeed it might be better to wait til after marriage even if you move up the date and then file, rather than potentially filing 2 bks. It though could be better for you to file and then have him not file if you can handle the burden.

    If you only filed, he would still be responsible for the vehicle and any other joint debt. However it would wipe out your credit card debt but not student loans.
    May 31st, 2007: Petition Filed by my lawyer
    July 2nd, 2007: 341 Meeting Held
    September 4th, 2007: Discharged and Closed.

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      #3
      Is your credit good enough to get a less expensive vehicle? I think someone, somewhere may bat an eye at a car expense that large. I may be wrong, Im no expert but I have spent some time on this forum. Hopefully one of the more experienced posters can answer this difinitively, but I'd say get something cheaper and get rid of the Armada. If you are gonna file BK, it's time to get down to living on a sensible budget. We just went out and bought a 2006 dodge grand caravan for $7K. Very nice, decent miles. We are surrendering a nice SUV in our BK. In the future when things turn around for us financially, we can once again get a nicer car, but right now, it's not logical. I'd think about that one.

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        #4
        I only wish we could get foodstamps! ((wink))

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          #5
          Have you talked to a lawyer yet? Get several free consultations. If several offer similar advice, take it. We waited too long to get a newer car before filing, (BK and new credit just doesn't make sense, we thought...) and now our credit is too far gone to do it. So we are stuck with what we have for 5+ years.
          1/15/10 Filed ch7 2/18/10 314 meeting
          2/22/10 Report of No Distribution
          4/20/10 Discharged 5/20/10 Closed!

          Comment


            #6
            My fiance's credit is better then mine. Last month he went to a dealer about a used nice SUV with low miles and very affordable (around $300/month) but I was scared since we had not seen an attorney yet and was unsure of buying a "new" used car and then turning around and filing.

            I told him last night he needs to get back to the dealer asap before the credit cards we are not paying hit the credit reports so he can try to get another deal like he had previously. If we do that we could then return the Armada. Then we could maybe wait until right after our wedding (Nov. 7th) to file that way we could file married and only pay for 1 bankruptcy.

            Say we did get another vehicle and turn in the Armada in July, do you think we would be safe to wait until November to file without being served?

            Comment


              #7
              Run back to the dealer. 740 down to 505, and dropping since we stopped paying in March. (We're in AL as well, BTW). The more I look in the forum, the more posts I see about getting a vehicle right away. Wish we had known...
              1/15/10 Filed ch7 2/18/10 314 meeting
              2/22/10 Report of No Distribution
              4/20/10 Discharged 5/20/10 Closed!

              Comment

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