Hello,
First post here. After many years of attempting to dig out of debt, I've faced the realization that I cannot possibly do this any longer. Our struggles started in 2004 after my husband had a terrible accident. Through multiple surgeries and rehab, he was out of work for almost 2 years. During that time we had a 2 year old and my income was less than $40k. We relied heavily on credit to get through those years. We also had about $50k in student loans to pay off (we did, took almost 10 years!). Even with insurance, medical bills piled up. When we were short, I'd open a new card or loan and transfer them. That's how it started. In recent years we've had more medical problems and bills and along with the ever increasing credit card debt we just cannot afford to make the payments anymore. My first late payment for a CC was last month.
Because of our money situation, I drove a 2002 Honda for the past 14 years. This past May it failed inspection and could not be repaired. After searching for used vehicles, I decided that I was going to buy something new and enjoy it for a change. I ended up with a new Honda Pilot that cost almost 40k. My husbands car is not reliable and we needed a reliable vehicle. We are a family of five that has to travel a lot! My life is spent shuttling kids everywhere and my commute for work is about 40 minutes. It just didn't make sense to me to buy another unreliable used car to sink money into.
Fast forward a few months and I find myself considering bk. This really didn't enter my mind when I bought the car. I planned to pay and juggle as usual. Only after more recent unplanned issues (my husband losing hours at work) have I been realizing that it's time. Our combined income is over 11k per month but we owe about $130k of debt. Our monthly cc and loan debt payments without the car payment is about $3300. We also owe about 9k in new medical bills.
I met with one lawyer and plan to meet with at least one more. I was told that in MA the new car will have to be included in the bk but that I can continue to make payments and keep the Pilot. He said the car cannot be taken as long as I continue to pay on time. Can anyone here verify this to be true?
We have no other luxuries, properties, etc. Our home and the new Pilot are all that I'm concerned about.
Will the fact that I have a new vehicle be held against me in any way? The first lawyer made me feel bad about buying the Pilot. He asked why I didn't buy a reliable used car for $10k.
Thank you in advance for any help. I'm sure to have more questions as I move forward.
Cheryl T.
First post here. After many years of attempting to dig out of debt, I've faced the realization that I cannot possibly do this any longer. Our struggles started in 2004 after my husband had a terrible accident. Through multiple surgeries and rehab, he was out of work for almost 2 years. During that time we had a 2 year old and my income was less than $40k. We relied heavily on credit to get through those years. We also had about $50k in student loans to pay off (we did, took almost 10 years!). Even with insurance, medical bills piled up. When we were short, I'd open a new card or loan and transfer them. That's how it started. In recent years we've had more medical problems and bills and along with the ever increasing credit card debt we just cannot afford to make the payments anymore. My first late payment for a CC was last month.
Because of our money situation, I drove a 2002 Honda for the past 14 years. This past May it failed inspection and could not be repaired. After searching for used vehicles, I decided that I was going to buy something new and enjoy it for a change. I ended up with a new Honda Pilot that cost almost 40k. My husbands car is not reliable and we needed a reliable vehicle. We are a family of five that has to travel a lot! My life is spent shuttling kids everywhere and my commute for work is about 40 minutes. It just didn't make sense to me to buy another unreliable used car to sink money into.
Fast forward a few months and I find myself considering bk. This really didn't enter my mind when I bought the car. I planned to pay and juggle as usual. Only after more recent unplanned issues (my husband losing hours at work) have I been realizing that it's time. Our combined income is over 11k per month but we owe about $130k of debt. Our monthly cc and loan debt payments without the car payment is about $3300. We also owe about 9k in new medical bills.
I met with one lawyer and plan to meet with at least one more. I was told that in MA the new car will have to be included in the bk but that I can continue to make payments and keep the Pilot. He said the car cannot be taken as long as I continue to pay on time. Can anyone here verify this to be true?
We have no other luxuries, properties, etc. Our home and the new Pilot are all that I'm concerned about.
Will the fact that I have a new vehicle be held against me in any way? The first lawyer made me feel bad about buying the Pilot. He asked why I didn't buy a reliable used car for $10k.
Thank you in advance for any help. I'm sure to have more questions as I move forward.
Cheryl T.
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