Question about our truck

[treadingwater]

I met with the paralegal last week. My husband is negative on his truck (financed with Ford), but not behind in his payments. We really can't afford to keep it with $855/mo. She said he should go out and get another truck that he can afford, while his credit is still good, and then take the Ford to the nearest dealership and walk away.

This sounds crazy to me...I'm new to all of this and very frightened. Also my husband is determined to get another new truck for 40k (boils my blood) but a lower payment.

I just want to go the Dave Ramsey route and avoid debt forever.

[AngelinaCat]

Hi treadingwater:

Welcome to this forum. I too am a newbie, but I have learned much, and while still in lots amount of pain myself, I have moments where I feel a little less stressed. I hope this will happen for you.

Please peruse all the sites and discussions here. You will find something useful to YOUR situation, even if the Thread title does not indicate that.

Meanwhile, will your husband consider refinancing at a lower rate with his current company, or no? If he is dealing with a credit untion, he could go in and talk to their credit people.

I would also suggest going to the website: www.clarkhoward.com for information on refinancing situations.

My Best~~~~

[keepmine]

It's perfectly acceptable to get your transportation needs taken care of prior to filing bk.
I'd not tempt the trustee with a $40K ride prior to filing. In most districts, the trustee will allow the actual payment amount of a secured debt as an expense. If the payment seems to be excessive, he may be held to IRS guidelines for your district and that will be a huge difference.
Your lawyer really needs to straighten him out on this idea. He needs to just buy something reasonable.

[CindyLou]

There was another member on this forum just two weeks ago that purchased a 40,000 vehicle and his trustee was recommending conversion from chapter 7 to chapter 13 due to the high car payment. (he purchased a new vehicle just prior to his bk on the advice of his attorney!!)

Honestly, if your husband is wanting to purchase a 40,000 vehicle then BK may not do you any good, because if he is unwilling to change his ways, then you may end up in an even worse situation very soon and not be able to use the bk option to get out of it.

There are plenty of vehicles...new ones...that fall within a resonable range for much less than even half of that price.

I agree with Keepmine. The trustee will likely find that purchase excessive and possibly give you many problems!