We are probably going to see a lawyer in the next few weeks to discuss filing Chapter 7 bankruptcy in October. Seeing only $12,000 of our debt is in my name, my husband will probably file alone unless the lawyer advises us otherwise. We have a vehicle that is financed at 1.9% with 24 payments to go. It is worth about $18,000 and we owe about $14,500 on it. I was thinking that we should probably surrender our vehicle in the bankruptcy as the payments are very high. We didn't put anything down on it when we financed it. It is financed directly with Nissan Motor Acceptance. We live in New York.
However, I was talking it over with my father and he thought it may be wiser to keep it. We won't be able to get anything at such a low rate for a while and he thinks that we stuck it out for over 3 years and should just finish the loan. He offered to help out for a while with the payments until I am able to find a job. My grandmother has also offered to help out if necessary.
The problem is that we probably won't be able to reaffirm it as our income is pretty poor now. My husband has a low paying job and I sell on eBay and go to college full time. I am planning on getting a job as well. Ebay is so up and down and right now its really down and fees are so high. I'm thinking of quitting eBay, selling off the last of my stock, and just working a regular job. I don't have the constitution for the peaks and valleys of self employment. I am scheduling my fall classes at night for this reason so I can work during the day.
I know we can redeem the truck and pay for it outright. I don't think that my father would lend us the whole amount owed ($14,500) in one lump sum. He was talking about chipping in a couple hundred dollars a month towards the payments. We could probably do a redemption loan, but the interest would go from 1.9% to 24%.
I guess what I'd really like to see happen is that we don't reaffirm but just keep the payments current after the bankruptcy and eventually pay it off. I've heard that they can repossess if there is no reaffirmation agreement even if the payments are current. I also heard that some states forbid them from repossession when payments are current. Does anyone know if you can still do a ride through in New York?
Also, when you file bankruptcy, do you have to state your intentions on the original petition? What do you say if you don't want to surrender but hope to ride through? Do you say that you plan to reaffirm but then don't file the reaffirmation paperwork? I've read a bunch of books on bankruptcy and I'm really confused on this part. I don't know if we should keep it or surrender. Another thing is that New York only allows $2400 equity and we will have more than that by about $1500 when it is filed. Would we give the trustee the extra money at the 341 meeting?
We have a modest home that we are keeping, $700 monthly payment, the house is upside down. Do we have to sign a reaffirmation agreement with our mortgage company too or just keep making payments as usual? We are current on the mortgage and the vehicle right now and will remain so if we keep them.
I'm sorry for so many questions, but I'm really confused on what to do about this vehicle.
However, I was talking it over with my father and he thought it may be wiser to keep it. We won't be able to get anything at such a low rate for a while and he thinks that we stuck it out for over 3 years and should just finish the loan. He offered to help out for a while with the payments until I am able to find a job. My grandmother has also offered to help out if necessary.
The problem is that we probably won't be able to reaffirm it as our income is pretty poor now. My husband has a low paying job and I sell on eBay and go to college full time. I am planning on getting a job as well. Ebay is so up and down and right now its really down and fees are so high. I'm thinking of quitting eBay, selling off the last of my stock, and just working a regular job. I don't have the constitution for the peaks and valleys of self employment. I am scheduling my fall classes at night for this reason so I can work during the day.
I know we can redeem the truck and pay for it outright. I don't think that my father would lend us the whole amount owed ($14,500) in one lump sum. He was talking about chipping in a couple hundred dollars a month towards the payments. We could probably do a redemption loan, but the interest would go from 1.9% to 24%.
I guess what I'd really like to see happen is that we don't reaffirm but just keep the payments current after the bankruptcy and eventually pay it off. I've heard that they can repossess if there is no reaffirmation agreement even if the payments are current. I also heard that some states forbid them from repossession when payments are current. Does anyone know if you can still do a ride through in New York?
Also, when you file bankruptcy, do you have to state your intentions on the original petition? What do you say if you don't want to surrender but hope to ride through? Do you say that you plan to reaffirm but then don't file the reaffirmation paperwork? I've read a bunch of books on bankruptcy and I'm really confused on this part. I don't know if we should keep it or surrender. Another thing is that New York only allows $2400 equity and we will have more than that by about $1500 when it is filed. Would we give the trustee the extra money at the 341 meeting?
We have a modest home that we are keeping, $700 monthly payment, the house is upside down. Do we have to sign a reaffirmation agreement with our mortgage company too or just keep making payments as usual? We are current on the mortgage and the vehicle right now and will remain so if we keep them.
I'm sorry for so many questions, but I'm really confused on what to do about this vehicle.
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