Stupid me paid off my truck - Can I "fix" it now?

[pcn]

Hi, new to the board, first question while trying to learn more. I have seen many comments about how it seems to be important to have a lien on your vehicle if you want to keep it during the bk, and that you can renew the agreement wit the lender. Two years ago work was very unstable. We paid off our vehicles (2002 F250, 2000 Explorer) thinking that if we lost our jobs (worked at same place) we would need to "protect" them in order to be able to find other work. Things got worse financially, so now considering bk and wondering what to do to be able to keep our vehicles. The first issue I see is that since they're paid off they are not "safe". Second is that AL doesnt seem to have a vehicle exemption amount that I can find. It almost seems like I should take a personal loan out with my truck as collateral, and try to make it 6 more months before filing. But I dont know if we can really last that long. I'll be seeing an attorney this week, and am concerned that if I do it puts some kind of time stamp on our situation. Like it shows that we were planning to file for 6 months before we did. Is that any type of fraud, or gray area? Thanks for any ideas or advice!!

[pcn]

Maybe I didn't ask this right the first time. I paid off my truck early, and now am looking at filing. How long before I file would I need to have a lien on my truck to protect it by making it a secured asset? Similar I think to people buying a new car before filing. Thanks!

[krielly]

How much is your truck worth? Do you have a wildcard exemption in your state which you could use to cover it? Also, does your state allow you to use federal exemptions? Maybe if you provide this info, someone can help you further.

K

[pcn]

Depending on where you look it seems to vary greatly. KBB say $10,800 in fair. No, AL doesnt allow federal exemptions. There is no listed exemption I can find for a vehicle in the AL exemptions I look at. So im guessing id have to use up the wildcard exemption, of only 3k. The site I found is not very good for listing amounts for some reason: http://www.bankruptcyaction.com/alexemptions.htm
Is there a better one anyone can recommend? Thanks!

[StartingOver08]

Take a look at this site and go for the district you live in:

http://www.legalconsumer.com/bankruptcy/state_bankruptcy_info.php?st_fullName=Alabama

Hope this helps you.

You may have to consider a 722 redemption on this vehicle because you own it outright.

[krielly]

What chapter are you filing?

[pcn]

I'm still learning, going to see an attorney next week so I want to have some idea of what I'm doing before we get there, and be able to ask decent questions. I think Ch13 so we can do a ND mortgage lien strip. Is one chapter better than the other in terms of the vehicle? It sounds like if this was a vehicle we still owed on, we would reaffirm (correct word?) that loan after we filed, but it being paid off puts it in danger. Is this correct?

[krielly]

Well, if you file a 13, you may be able to keep the vehicle, but you will have to pay the non-exempt value through your plan........
It's really best to discuss this with your attorney, as he is the only one who will know what your trustee will/will not allow.

With regards to whether a 13 or a 7 is better, it really depends on your own personal situation. If you want to do a cram down, for example on your mortgage, it may be worth the 3-5 years of payments, if the end result is that you are no longer upside down on your mortgage.

Try not to panic or overthink any of this until you have met with an attorney or two or three to discuss your own personal situation.

Remember, there's no use worrying about the things in life that we have no control over.

Good luck!
K

[pcn]

Take a look at this site and go for the district you live in:

http://www.legalconsumer.com/bankruptcy/state_bankruptcy_info.php?st_fullName=Alabama

Hope this helps you.

You may have to consider a 722 redemption on this vehicle because you own it outright.

Thanks for the link. it seems to contain the legal requirements but no actual amounts. Hopefully the lawyer will have all these details...

[AngelinaCat]

Going to see an attorney, or several, does not put any kind of time-stamp on what you do. The date you actually FILE, whether it be a 7 or 13, is the time-stamp.

You can take a personal loan using your vehicle as collateral, and use that money to purchase things like storable food, shampoo, paper towels, toilet paper, etc. that you know you will be using. Or make repairs to your home or car that you know needs to be done, but have been putting it off. Don’t blow the money on a luxury such as a cruise—though the idea is nice. There is a 6 month look-back period from the date you file. Keep all of your receipts so that you can account for it. Put off filing for as long as you possibly can.

If you are a member of a credit union, get your loan through them rather than some of the lending companies out there. An institution that you have been doing business with for several years is more likely to work with you.

Now, having said that, if you have credit card accounts with the SAME institution that you think you might go for your loan, don’t do that. They can cross-collateralize the accounts and cause you trouble there.

Good luck to you, and welcome to the forum.

[pcn]

Try not to panic or over think any of this until you have met with an attorney or two or three to discuss your own personal situation.

Remember, there's no use worrying about the things in life that we have no control over.

Good luck!
K

Thanks for the encouragement. I do tend to over think before I act, part of why we are here now maybe... But, but I've also lurked and read more than a few posts that seem to come from people who jumped in without really knowing what they were getting into, or so it seemed. I'll probably ask more than a few stupid questions before we take the plunge. Thanks again for being willing to help!
PS - I am a Little concerned because I don't see any "This was the wost thing I've ever done" posts. They all cant go perfectly, can they?

[krielly]

Well, look at it this way............ If they all went perfectly, there probably wouldn't even be the need for this forum at all

[AngelinaCat]

PS - I am a Little concerned because I don't see any "This was the wost thing I've ever done" posts. They all cant go perfectly, can they?

No they don't. 'Hub and I are almost the poster children for doing everything wrong that could be thought of. That was because we knew nothing about BK, and hired the first attorney we spoke to. That was the FIRST worst thing we did. She gave us no real education and guidance, and when we tried to call her office to ask questions, all we got was the voice mail and no call back from her or her assistant.

We did not start becoming educated in the BK process until we found this forum in April 2008. We filed Ch7 on Dec. 28, 2007 and had already had our 341.

FIRST Tip: Interview several attorneys after reading here and getting educated first.

Good luck

[pcn]

AngelinaCat, thanks for the help I've read many of your posts in my lurking. very helpful.