Want to file ch. 7, scared to lose my car

[emanze]

Hi everyone,

I'll try to be very brief. My bills are medical, credit cards and taxes. I'm at about 20k now. Combined with 15k in student loans, it's been a huge struggle. Unfortunately, I stopped paying state taxes about 10 years ago. I know, very stupid and very illegal. I've always paid federal but, one year I forgot state, and was afraid to file the next year. Total stupidity on my part.

For extra income, I took on a weekend job. So for the last four years, I've worked 7 days a week, 56 hours a week, trying to get ahead. It just never happened.

Today I was laid off from my week day job. Honestly, it's a relief that I don't have to work these crazy, long hours anymore. I'm beyond exhausted from this battle, I really am.

I have no property at all. I moved back home with my folks, they own virtually everything I use. The one exception is my car. When things were better for me, I paid for it in cash. It's now worth about 10k.

I'm really terrified of losing my car. My weekend job is 20 miles away and not on a bus route.

I'm really at a loss at what to do. Do I go ahead and file 13 and just pray I find another job?? Or do I file 7, lose my car and lose my one job with it.

Thanks much for any help!

[JRScott]

What state do you live in?

[emanze]

What state do you live in?

I live in Arizona. I understand its value is up to 5k. My car is twice that about, even with a huge cracked windshield that I haven't been able to fix for a year. Ugh. All this is very depressing.

[JRScott]

How did you come to the value?

Is that the NADA value or Kelly Blue Book Value?

Now assuming it is worth 10k even with the damage. That doesn't necessarily mean you'd lose it in a Chapter 7.

It is possible the trustee would allow you to redeem what you cannot exempt. Which means he'd set up a payment over a years time for you to pay him and keep the car.

[emanze]

How did you come to the value?

Is that the NADA value or Kelly Blue Book Value?

Now assuming it is worth 10k even with the damage. That doesn't necessarily mean you'd lose it in a Chapter 7.

It is possible the trustee would allow you to redeem what you cannot exempt. Which means he'd set up a payment over a years time for you to pay him and keep the car.

Really? I'd do that in a heartbeat! Anything to keep this car. I don't even want to file if there's a chance I'll lose it. I use it every day extensively.

I came up with that value through Kelly Blue Book.

[Naomi]

Wow, AZ gets pretty specific with their exemptions...especially the furniture.

http://www.thebankruptcysite.org/exemptions/arizona.html

[emanze]

Wow, AZ gets pretty specific with their exemptions...especially the furniture.
http://www.thebankruptcysite.org/exe...s/arizona.html

Well, that's very depressing. Thanks for the link, though

[Naomi]

Sorry, didn't mean to depress you more.
I just thought it was kind of strange to list everything out like that.
Especially the ...bicycle, firearm, bible thing.

[emanze]

It's okay. Arizona is a weird state.

[bkmaggster]

Just to make sure you know:

State taxes and Student loans are not dischargeable in bankruptcy.

How much is your debt without those two items?

[emanze]

Just to make sure you know:

State taxes and Student loans are not dischargeable in bankruptcy.

How much is your debt without those two items?

I do understand, thanks.

I'm sorting out my debt right now actually.

My cc and medical loans are roughly 12k.

My student loans are 15k.

My taxes, I just don't know. My guess would be a couple of thousand with the penalities but I don't know since I haven't been filing.

It might not sound like a lot but, together, it has buried me. I've gone to many cccs agencies and the most optimistic plan had me coming out of debt in 16.5 years IF I continued to work two jobs.

[bkmaggster]

I do understand, thanks.

I'm sorting out my debt right now actually.

My cc and medical loans are roughly 12k.

My student loans are 15k.

My taxes, I just don't know. My guess would be a couple of thousand with the penalities but I don't know since I haven't been filing.

It might not sound like a lot but, together, it has buried me. I've gone to many cccs agencies and the most optimistic plan had me coming out of debt in 16.5 years IF I continued to work two jobs.

Bankruptcy doesn't seem like the right solution to get rid of 12k of debt, but you have to do what is right for you.

Is there any way you can increase your income by doing a different type of work?

Have you thought of not paying your ccs for a while, saving up money, and then settling? If you really aren't making any money, you are relatively judgement proof anyway.

And your creditors will have to get in line behind the tax people to get any money from you anyway.

I know you don't want to get rid of your car, but if its worth 10k and you only owe 12k, maybe you can sell it and settle on your debt and buy a junker?

Just some thoughts...

[JRScott]

I think you missed the part where he lost his full time job just leaving a part time job.

Jobs are not easy to get in this economy, degree or not.

[bkmaggster]

I think you missed the part where he lost his full time job just leaving a part time job.

Jobs are not easy to get in this economy, degree or not.

Nope, didn't miss that part. That's more reason imho why the OP shouldn't file - they should wait until income stabilizes.

[Chowder]

Have you thought of not paying your ccs for a while, saving up money, and then settling? If you really aren't making any money, you are relatively judgement proof anyway.

Sounds like the best way to go.