Hard Time Making A Decision

[Rozi]

Hello Everyone!

I have been reading and posting on these boards for a while and I just love it. Right now I am in a pickle and I need to make a decision by the end of this week. I have 37K worth of debt right now that is driving me crazy. 23K of it is a car that is worth about 9K and needs 2K in repair. I love this car but, can not afford the 600.00 monthly note anymore. The rest of the debt is credit cards, a loan and medical debt. I filed Chapter 7 bankruptcy in 2001 and it's about to fall off my credit report this year. Now I am looking at filing Chapter 7 again to clear this debt. I feel really guilty and just depressed. I feel that at the age of 31 it is going to be harder to rebuild. Does anyone have any advice on what I should do? Should I just take the plunge and do it? I will need to buy another car and would like to buy a house one day. With the credit rules now is there any future in that? I hope someone responds!

[tobee43]

you may want to consult an atty. but i would just turn the car in, or surrendered the car if it were me. and, while this will still look like a repo on your credit report, but better than a bk.

since this car is really the bulk of your debt, that would immediately resolve that problem. i understand you may really love the car, but it's not worth being buried under the sand, you think??

i would first try and save a bit of cash get yourself another car. i know your probably saying how to do that...well if you don't have that $600 note anymore save that for a few months and get yourself a nice certified used car.

best of luck!

[747LUVR]

Well, like Tobee43 said, I concur, perhaps if you're current on your note, you could get the lienholder to give you a 1 or 2 month forbearance, usually they may charge you a small fee, and if that gives you 1-2 months of savings, great. then maybe make one payment, or partial....and then let it go. you could probably keep the wheels for 45-60 past your due date and at $600/mo, you could probably save up $2500-3k in that time period...that may buy you a clunker, or 50% down on a used clunker. if you had to finance $2500 and could get 2 years, your payments would be in the neighborhood of $100-$130 probabaly....hope this helps ya