I screwed up... Now what?

[Freecuban]

Hi All,

I'm new here. Long story short. My wife got laid off over a year ago. Our house is underwater about $100k, credit card debt over $60k, Our savings is gone, our ira is down to 10k, and we're getting a divorce. We stopped paying all credit card bills and our mortgage last month. Then 2 weeks ago I decide to buy a new car. A hybrid. A luxury hybrid. It was an impulse buy, and a bad one at that as I won't be able to afford it. I was planning on then turning the keys of our other car, a BMW, back to the dealer as it's still on lease and I was just going to walk away from it. My wife's car is fully paid for. Now we have 3 cars. 2 of which are "mine" and I want to get rid of. What can I do? I'm in California and are including the house in our chapter 7. Thanks in advance.

[jlmaca]

Hi All,

I'm new here. Long story short. My wife got laid off over a year ago. Our house is underwater about $100k, credit card debt over $60k, Our savings is gone, our ira is down to 10k, and we're getting a divorce. We stopped paying all credit card bills and our mortgage last month. Then 2 weeks ago I decide to buy a new car. A hybrid. A luxury hybrid. It was an impulse buy, and a bad one at that as I won't be able to afford it. I was planning on then turning the keys of our other car, a BMW, back to the dealer as it's still on lease and I was just going to walk away from it. My wife's car is fully paid for. Now we have 3 cars. 2 of which are "mine" and I want to get rid of. What can I do? I'm in California and are including the house in our chapter 7. Thanks in advance.

Welcome to the forum! How far along is your chapter 7? I'm assuming you have an attorney representing you. What did your attorney say about the impulse buy of the hybrid? Could be an issue. I don't see any issue with the BMW it seems you will not be re affirming that lease so yes, give it back. Did you file chapter 7 jointly?

[AngelinaCatHub]

Welcome. You are among friends here. Did your financial situation cause your decision for divorce? If so, would that change if you had less debt? The reason I ask is, money statistically is the reason for most divorce. It is sad as you both will need someone to "lean on". There is a certain healing aspect in all this bk stuff. Particularly if you learn from it and make the best effort in your new start.

I don't see the problem with the new car except you had to have the most expensive one. Basic transportation is wiser and you must get used to not living like a "high roller". Recovery is going to take serious budgeting but can be fun.

The car is far from equatized so there is no need to worry about the Trustee wanting it. Perhaps it is in preparation of your new start and you intend to drive the wheels off of it. The paid car may be an issue of recovery assets. Yes this was not the most wise thing to have done, but I think you can get by on it. Are you able to pay for this new toy? Both you and your wife may be driving only that car if the Trustee takes her paid for car. More reason to try to patch the marriage. How is your job future looking?

More general info will be needed for us to give you intelligent opinions. 'Hub

[Freecuban]

We haven't filed the BK yet, we have a lawyer ready to go, we're going to officially hire her this week. I may not be able to afford this new car payment, like I said - it was an impulse buy based on some crazy emotions... There is no chance for reconciliation and me soon to be ex has already taken a job in another state, unfortunately I do believe money is the cause of our divorce. From our initial meeting with the lawyer she saw no problem with keeping the paid off car . We have no assets, except for an 8 yr old SUV, an underwater house, and now a car I can't really afford. We will be filing jointly as we have the same accounts and the house is in both of our names. I do not want my wife to lose her paid off car b/c of my mistake. I will be talking with my lawyer today as well and hope for some good news..