Car Payments

[Mom2one]

My husband and I are most likely filing in December. We are close to a 7 now that his overtime has been cut. We have one car that we have a payment on. That car will be paid in March. If we are close to a 7 will this push us into a 13. I cannot afford a car payment. Our budget is tight right now, trying to pay our bills and save for an attorney. We are so close to a seven we are only 750 over the median.

Christine

[Cali]

What do you have left after expenses?

My husband and I are most likely filing in December. We are close to a 7 now that his overtime has been cut. We have one car that we have a payment on. That car will be paid in March. If we are close to a 7 will this push us into a 13. I cannot afford a car payment. Our budget is tight right now, trying to pay our bills and save for an attorney. We are so close to a seven we are only 750 over the median.

Christine

[lcphglc]

Stop paying your bills

If you are 6 months from filing a ch 7, then stop paying your bills, increase slightly your car payment to have it paid off before filing, and save your cash to pay an attorney and have something to restart with. If you have decided to file, then take advantage of the fresh start that is allowed and save your cash.

* I am not an attorney; please check all advise with a licensed attorney in your area of residency.

[Mom2one]

Cali, The way I figure out the means test we have about 100 left. But that car will be paid off in March!

I am so stressed and we have a long ways to go!

Christine

[justplaintired]

It sounds like to me once the car is paid for you will end up filing C 13, only because you will end up with too much disposable income. You definitely need to do some research. Will you have too much equity in the car? Can you use one of your state's exemptions to protect it? Lots of things you should check on now. I don't know if you have already found an attorney, but if not, it might be wise to. Find one you like and trust, then let them guide you in the right direction.

We found our attorney way in advance knowing most likely it would be awhile before we filed, nothing wrong with being prepared.

[Cali]

My brain must not be working properly right now(no Starbucks today), but I don't see what having your car paid off in March has to do with you not being able to file C7. If you are paying on a car now, you can use that as part of your expenses. The car being paid for in the future shouldn't be a concern if you plan on filing before it is paid off.

[Mom2one]

We are seeing a new attorney on the 23rd. We stopped paying some of our cards in April all of them as of May. We have been living on cash for 3 weeks now. We are hoping to file in December as we had a big pay in May that needs to fall away. My hubbys overtime was cut from like 30 hours a paycheck to about 7 or 8 hours a paycheck, some weeks less than that. Right now we are just trying to do the best we can.

Christine

[AngelinaCatHub]

Arn't we all.

Listen to Cali, and this forum. There are worse off, and better off, but to each of us, we are hurting. We, I believe, have all learned a lesson. Cash only for me if I get over this hurdle. 'Hub

P.S. Hi Cali

[Mom2one]

OK I guess what I mean is, we plan to file in December, then it would be like what 2 months til the 341 and could the trustee say oh your car will be paid off next month, and push us into a 13? I am hoping this new attorney we see in 2 weeks will be the one that we can use and he can help. I am hoping he is understanding that we can't count on overtime.

Sorry to be such a pain in the butt
Chrissy

[Cali]

I seriously doubt that will happen, but I don't know how things work where you are at.

And my 341 is next month and I filed this month. So it was only a month and a few days.

OK I guess what I mean is, we plan to file in December, then it would be like what 2 months til the 341 and could the trustee say oh your car will be paid off next month, and push us into a 13? I am hoping this new attorney we see in 2 weeks will be the one that we can use and he can help. I am hoping he is understanding that we can't count on overtime.

Sorry to be such a pain in the butt
Chrissy

[CindyLou]

OK I guess what I mean is, we plan to file in December, then it would be like what 2 months til the 341 and could the trustee say oh your car will be paid off next month, and push us into a 13? I am hoping this new attorney we see in 2 weeks will be the one that we can use and he can help. I am hoping he is understanding that we can't count on overtime.

Sorry to be such a pain in the butt
Chrissy

This is an issue that needs to be dealt with carefully. Yes, if it will be paid off soon, it could be an issue and could possibly put you in a 13 if it does in fact cause too much disposable income. However, there may be other expenses that you have not included that may make up the difference. Also, your income will be based on the 6 months before you file...I would certainly make sure that your husband works as little OT as possible during that time frame. I know that's hard and seems counterproductive when you hurting for money, but maybe since you aren't paying the credit card bills anymore you can make it without any OT. Then once you file he can start his OT again.

You are being very smart to take these issues into account!!