Hello all-- This is my first post here and I hope some of you can help me. To be brief, my wife & I have 2 car loans both at high interest due to our colorful credit history. In Nov. 02 she was diagnosed with terminal colon cancer. On 2-6-04 the doctor told us she will probably not live until Christmas. She has been on paid medical leave from her job, but that will expire a month from now and she will not be returning to work. Without her income, I will not be able to make both car payments. My salary will cover the lesser car payment and the rest of our expenses and leave a small amount for savings. I can not pay both car payments and the rest of our bills on my salary alone. I have called the lienholder, Chrysler Financial but they just said sell the truck to the dealer and send us the balance. I can't sell it for what I owe on it. If I got book value for it, I'd still owe anther $7,000.00, which like most people I do not have. Does ANYONE on here have any ideas or advice for me? I do not want to file BK or have the truck repo'ed. We have an 11 year old daughter and I have been trying to repair my credit for the last few years because I know I will need good credit to provide for her. Any help is appreciated.
I am extremely sorry to hear about your situation. In some states, there is insurance that is offered in the finance department to cover this type of situation. I apologize for not knowing the verbage, as it is not offered in my state (CA). Do you remember purchasing any products in finance? If you want, I can look over your contract for you.
Very sorry to hear this James. We'll be thinkin of ya. Chip is talking about Credit Life. Did you get that? What about other life ins.? Usually there's at least a small benefit at work. ??? .
I'm so very sorry!!!! Butch is right, look into that first. I also know that my banks have given me $1000 at each one for life insurance as a benefit for membership..maybe you can check into that? Especially if you are a member of a Credit Union...
Thanks for your replies. We did not get credit life insurance on either car loan. We have been advised in the past that it's not worth it. My wife has life insurance with her job, but I don't see how they will pay anything from it if she is not employed when she goes. At this point, I am just about ready to sell the truck and let Chrysler Financial have what I get for it. If they sue me for the balance or garnish my salary, so be it. I really just want to make the best of the time we have left together. But I have learned that a new car or truck is a terrible investment. I know of nothing else in this world that depreciates as quickly or as much as a car. Thanks again for the help and if anyone has any other advice, please reply.
After paid medical leave runs out, will she be eligible for SSDI? If so, it usually pays about 2/3 of her salary. I know it's only a temporary stopgap, but it could give you the time you need to devise a better plan.
SORRY... Get what you can for it...(if you can sell it) If it has a LIEN on it...you may have to just return it to the dealer...
At the place I work, you can continue the life insurance coverage even after you leave. You start paying the premiums yourself, but you'll still get the group rate. Check with your wife's benefits manager.
i am so sorry to hear about your loss. i lost a few family members over the last couple weeks myself and it never gets easier. you credit is the last thing you need to think about. let them take it back, if need be, and file bankruptcy if you have to. now, go shut off the computer and go spend time with your wife because your credit you can get back. but time you can't.
for what its worth, EVERY creditor takes into account extraordinary circumstances such as this. even fha loans are allowed 2 years post bk w/proof of circumstance. i think this will qualify.
Re: Re: Re: Car Loan & Terminal Illness I don't know. My employer recently switched life insurance companies and this came up during Q&A when the insurance guy came by for a presentation.
Re: Re: Re: Car Loan & Terminal Illness Thanks so much for the replies. Jennifer may get SSDI but it will not be much money becuase she doesn't have many credits. She didn't work much during college, and the first 5 years we were married she did not work. She stayed home with our daughter & at the time I made enough to support the 3 of us. I have wanted to look into continuing her life insurance payments but I have not talked with her about it because I don't want to upset her. It seems morbid to me to bring it up to her right now. I would gladly give up everything to have her well, but that is not going to happen. I am planning on at least calling the dealership tomorrow to see if they will be willing to help or possibly buy the truck from me, but I am well aware that they won't do anything unless there's profit in it for them. I may try to find a part time job to keep the truck payments current, but that just keeps me away from home & my family that much longer. Thanks again for your replies & info.
I'm so sorry to hear about your situation..... I think you are making the right decision with just selling the truck, regardless of the impact to your credit. Keep your time for your family, you can always come back and pick up your credit. Always. Make sure and check with your employer regarding Cobra, it can be extended I **believe** for 18 months. You have about 60 days or so to sign up, I'm not sure the exact date, check with your employer. I know it must be difficult to talk about this with your wife, but it is probably more difficult for you than for her. If there is an insurance benefit that is available for you and your daughter, make sure it is there when you both will need it. Best wishes.
Also, regarding the SSDI benefits, you wife may be eligible for State disabilility benefits. State disability benefits (in my state) are higher than SSDI. But have a max of one year, then you would have to go to SSDI. I had both my achilles tendons detached awhile ago, and got state disability for about a year. It was based on 2/3 of my gross pay.
Re: Re: Car Loan & Terminal Illness One more thing to ask is whether the policy has an accelerated death benefit where you can get an immediate payout if diagnosed with a terminal illness. That could cover the difference on the vehicle and then you wouldn't have to worry about it anymore.
Re: Re: Car Loan & Terminal Illness Again, thanks to all of you for your input and compassion for our situation. I will call Jennifer's office as soon as I can about the Life Insurance and continuation of her other benefits. This whole ordeal has been terrible-not only do I get to watch my wife die a little each day, I get to see our savings go down the tubes too. You guys have given me some good ideas & a great deal of hope, though. Thank you so much for your help. JamesN
You should see a BK lawyer- IF you have any possible benefits for your family they need to go to your FAMILY not to a creditor. You cannot sell the truck with a lien on it, you will have to turn it back to the dealer as a voluntary repo, a BK will prevent your being responsible for the deficiency. Check with the benefits dept. regarding your wife's life insurance-- it is NOT covered under COBRA as is her health insurance, but MUST be extended under Federal and State statutes.There may be a waiver of premium for disability, but there would be no advance benefit available, and even if there were, it should not go to any creditor. Check with your State labor dept. the Cancer Foundation and any other Community groups you can find for more help. Your best bet to protect your daughter is to file BK and get rid of the burdens you now have, you can reaffirm the car debt of the one vehicle if you wish to, or just keep paying it and include it in the BK in case you need to turn it back in also.
Thanks again for your replies. Why Chat, would I file for BK before turning the truck in at the dealer or turn it in then file? I assume you are referring to a Chapter 7, not a 13? And what happens to the precious little money I now have in the bank? (About $2,000.00). We don't live an extravagant lifestyle by any means, but can they take our furniture and other possessions? We do not own our home; we have been renting for the last 5 years. I do not want to be a "dead beat"; I am trying to be proactive about this problem before something terrible happens. This whole thing is terrible and I feel awful worrying about money and bills when I know I should be trying to enjoy the time I have left with my wife. She is so depressed about her health that I don't dare try to discuss our financial situation with her right now. I do know that after this is all over, I will not buy anything on credit again. I have learned that it is all too easy to lose everything, and banks don't care. I signed a contract & Chrysler Financial wants its money. ALL OF IT. Thanks for all your help and listening to me. I'm sure all of you have problems worse than mine. JamesN
One option might be to go ahead and file Ch13, and have your BK atty. postpone the hearings. This creates an automatic stay and all collections STOP dead in their tracks. Everyone would have to leave you alone. Once you get through this, you can later motion to dismiss the Ch13, and hopefully catch up with accelerated debt with ins. proceeds. A voluntary dismissal, along with a 100 word statement explaining what happened would be FAR less damaging to your credit. James, you need to address these issues with Jennifer. If she's anything like the Foxy Mrs. Butch, she would be upset to find out I neglected my own and our child's future welfare because I "didn't want to upset her". Keep us posted on what you find out tomorrow. .
