Is chapter 7 the right choice for me?

[bcohen]

OP is $10,000 underwater on the truck. I think he'd have trouble dealing with that amount (or more) if he voluntarily repo'd.

That's exactly what I was thinking. A lender might not sue a person with no job, living in a rented home, but you can be damn sure that if OP does this, he will be sued within months of the repo sale. The collections law firm knows that it can place a lien on his house, and will therefore be paid for their effort.

[AngelinaCat]

Yes, this will be a problem.

'Hub had co-signed on a car loan for an acquaintance who was 'down on his luck'. This person had no property and nothing that anyone could attach. When he defaulted on the payments, and WE started getting dunning notices from the finance company, 'Hub made this person surrender the car. It was sold at auction for 6K.

'Hub and the acquaintance both were sued for the difference, which was 13K. We filed BK, the acquaintance did not. We discharged the debt in BK. The acquaintance has a judgment on his record for 13K.

[btbeme]

OP is $10,000 underwater on the truck. I think he'd have trouble dealing with that amount (or more) if he voluntarily repo'd.

When your total debt is roughly half your annual income - and most of that debt is tied to a secured asset that would (ironically) be spared in a BK - what would you suggest?

Depending on the jurisdiction, the OP could ask for a reaffirmation in a BK on the truck, which any judge with a heartbeat and three living brain cells would likely deny - thus leaving the OP available to a repo anyway. Maybe they would, maybe they wont - but if they do not repo, the OP has filed a BK for just a few thousand in unsecured debt and still has a truck payment that is bleeding him dry. If they do repo, the OP is out from under and can't be sued for the difference, but it seems like a complete waste for a matter of a debt amount that is clearly manageable with a couple minor adjustments to budget.

I hate to recommend credit counseling, but maybe in this case it makes sense. I struggle with a BK for so little when the OP income is adequate to compensate over time.

[LadyInTheRed]

When your total debt is roughly half your annual income - and most of that debt is tied to a secured asset that would (ironically) be spared in a BK - what would you suggest?

That he files BK and stops making payments on the truck without reaffirming. The lender will most likely repo. If not, then he keeps driving the truck. Whether or not the lender repos, he will not have a deficiency to worry about like he would if he lets the truck be repo'd without filing BK.

I agree with others that instead of filing BK, he should get his sister and mother to pay rent or get them out and get a rent-paying tenant. The debt does not seem insurmountable if he could just get a little more income coming in.

[stevie2012]

I definitely would not file BK in that case. I would do whatever I could to increase my income and pay off the debt. JMTC

[AngelinaCat]

NoMasDebt, so far it looks like the consensus is that you grow a backbone and get your mother and sister to pay rent, or they need to make other living arrangements.

Today is October 11, and before too long Winter will set in. These things need to be settled BEFORE Winter starts. I don't remember if you said where you are located, but you need to get off the bench and do something.

Do NOT listen to the whining and crying that WILL come. As hard as it sounds, and I know some people don't like me for saying this, but NOW is the time to look out for yourself and YOUR future. I have been through all of this kind of *stit* with my mother's brother.

Your mother and sister are adults and should be expected to behave as such, and not parasites.

Just my humble opinion....

[Drazil65]

Hi, completely agree with all the other posts regarding getting rent from mother and sister. Perhaps you go into the conversation with a strategy since its so hard for you to ask them to do so and stick to it. Maybe you inform them that they have 30 days to move and if they do not move you will put the house up for sale and move into a 1 person studio (maybe not a bad idea) and they will have no choice but to make other arrangements.

Enabling your family does not help them, it hurts them in the long run. You know this and you will have to make a plan and stick to it. You can do this, you have to do this, you know you have to do this. Good Luck!