Ch 7 VS Ch 13

[schel]

Well spoke with an attourney and got some good news and bad news...
We are going to file no matter what...
Attourney recommends Ch 13 which will put our payments at $450.00 a month for 5 years keeping our truck and home.
I asked about Ch 7 being we have a 5th wheel we make payments on and he said if you want to keep the 5th wheel your payments will be the truck loan at 486.00/mo 5th Wheel at 158.00/mo and since we are with a credit union, have to keep our credit line which is at 167.00/mo adds up to 811.00/mo.
As far as I am concerned, it is a no brainer... but I am having trouble convincing my husband of that.
Forfit the 5th Wheel, and keep the truck and payments at
450.00/mo and if he really wants another, show that we can save the extra we would put out to make up the 811.00/mo and get a cheaper camper with CASH.
Any KIND words of wisdom or input between now and later when my husband gets home would be appreciated.
Thanks for everybody on this site. It has helped my worst fears.
Schel

[lrprn]

As far as I am concerned, it is a no brainer... but I am having trouble convincing my husband of that. Forfit the 5th Wheel, and keep the truck and payments at
450.00/mo and if he really wants another, show that we can save the extra we would put out to make up the 811.00/mo and get a cheaper camper with CASH. Any KIND words of wisdom or input between now and later when my husband gets home would be appreciated.

One of the hardest parts of filing is being able to let go of the emotional attachments we have to our things. They are just things...not a loved one.

First point of discussion - when we make poor financial decisions or have a financial disaster forced on us that we don't expect, it's hard to let go of things we believe we can't live without. Better to look at the long run and what's best overall to create financial security than a death grip on trying to keep a non-essential asset that could cause untold financial problems in the future.

Second point of discussion - you can't exempt a 5th wheel motor home under the bankruptcy homestead exemption in most states unless you live in it full-time. Did the lawyer you met confirm you can protect your 5th wheel with your exemptions? Whether your husband wants to give it up or not, if the 5th wheel can't be protected by your state's exemptions, he may have no choice. That's a high dollar item and a trustee would love to get their hands on it if there's enough equity in it after paying off your lender to make it worthwhile.

Good luck with your talk - hope your hubby can get past his emotions to see this as what it is - a cold, hard financial decision for what's best for the family in the long run.

[One Half Full]

I too see trying to keep the 5th wheel as "emotional." BK is really a very drastic financial move. People need to understand that they are going to need to sacrifice something to get their finances in shape. Life will "not" be like normal for a while. For many of us, life will be better without the suffocating burden of debt; however, also, it will be without as many material objects, and with (possibly) a new attitude towards spending.

I think clinging to things is just a symptom of not being able to let go of your former existence.