James, you're not a deadbeat. You couldn't possibly have foreseen or planned for this illness. As for chapter 7, what you lose depends largely on which state you file in. It would be very unusual to lose furniture or other possessions. Some states have a wildcard exemption that would protect the $2000 in the bank. Even if it's not exempt in your state, you could spend it on necessities before you file in order not to lose it. A chapter 7 would discharge any deficiency in the car loan. You could just give up the car and be considered even. In a chapter 13 you could probably get the loan "crammed down" meaning get the debt lowered and pay only what the car is actually worth. Most bankruptcy attorneys will give a free initial consultation. I'd recommend calling a few and finding out what your options are. In the meantime, go to this website to get an idea of what property is exempt in your state. http://www.bankruptcyinformation.com/services.html
Listen to Why Chat - go see a lawyer to find out what to file and what you can keep. Generally speaking, ch 13 is used if you have a house and/or other assets you want to keep, and could not keep under ch 7. But, for your own sake, see a lawyer. I think it will relive you of thie terrible financial burden, and allow you to spend your time and resources on your family, instead of your creditors. It is not all that difficult to come back from a bk 7 quickly.
1*We did not get credit life insurance on either car loan. We have been advised in the past that it's not worth it. 2*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. JamesN710 ><- <>- ><- <> I am so Sorry about your bad news. 1*Credit life is a rip off but you were ill advised as the adviser never offered an alternative solution that would have prevented the problem you now have concerning the car loans. 2*Do you have a policy your self with her listed on it also.
James, I'm also very sorry to hear about this. I also know what it's like to see someone close to you (in my case, my mother) go downhill like this. The bankruptcy advice is good. But since you don't have a house and seem to be able to keep up with everything else, it seems that this truck is your problem. Is there someone in your family who would lend you the money until you collect on any life insurance? Or do you have a family member who needs a vehicle and would take over payments? At this point you could probably let them have it for nothing down, they pay the payments and they drive the truck. Maybe you keep your name on the title as well until it's paid. Then if they don't make payments you can take it back. Don't say you'll never buy on credit again. Credit, properly used, can be good. But maybe next time get a used vehicle or a cheaper vehicle so the payments are more reasonable. Also, if you can afford a shorter term loan, you can pay it off faster and get ahead of the depreciation curve. Another thought--can you refinance the truck, perhaps through a credit union? Often credit unions are easier to work with. You can sit down and explain the circumstances, and perhaps they can refinance so that you have a lower payment that you are more likely to manage. Also, if you can keep payments up or make arrangements for a while, you can think about a second job later. In fact, you may need something to occupy your time when she's gone. Then you can catch up. That could work with the Chapter 13 idea. Just a few random ideas. I wish you the best. As others have said, spend as much family time as you can. You can repair credit and buy more vehicles. You'll never get the chance to spend time together after she's gone. I'll keep you both in my prayers.
Thanks to all who replied (again). I wasn't able to get to the dealer today. I had a long day at the office. I will try to go over there later in the week when they (and I) might not be as busy. I will also try to find a lawyer to review our situation. If anyone knows of a good one near Tampa, Florida I am all ears. As I understand it they will have the first consultation for free but there are fairly heavy charges for them to take on my case & file for the BK. That means more expenses. I am trying to be proactive, but turning the truck over to a family member is not an option; neither is borrowing money from them. At least I have a little time on my side-the payments on both vehicles are current, and I have not been late on either loan so far. I thought having a good record of paying on time might carry some weight with Chrysler, but apparently I was wrong. Luckily for me, if I can make Feb. & March payments on my wife's Honda on time, that lienholder Fairlane Credit will drop the interest rate so I have a lower payment. They do that if you make the first 2 years' payments all on time. They told me I can expect it to drop between $20.00 to maybe $50.00 a month. I figure I can try to keep paying the same amount as before and pay it off that much quicker. If I collect on Jen's life insurance policy, maybe I could pay both vehicles off, but I do not want to think about that now. I want her to be well. Thank you all again for your ideas. I appreciate your keeping us in your prayers. Thanks again, JamesN710
Re: Re: Car Loan & Terminal Illness Maybe you could keep your name on the title as well until it's paid. Hedwig ============= This could be risky
Re: Re: Car Loan & Terminal Illness Maybe you could keep your name on the title as well until it's paid. Hedwig ============= This could be risky
Re: Re: Re: Car Loan & Terminal Illness Not trying to hijack this thread, and I've read it several times and thought about writing but didn't. Here my 2cents worth. I was diagnosed in 1995 with terminal cancer at MD Anderson in Houston, Tx. It is one of the 2 premier cancer research hospitals in the nation, heck probably the world. Was told I would not make it. Had 4 small children, ages 5-11. Research was about my only option. When I was told I was going to die, couldn't live, I went to a higher authority, one in charge of these things. Would not listen to anyone who told me anything neg., just the word of God, heavily new testament, I am now out from hospital, will be 7 years June 6th since discharged, actually never returned, figured what God did, He could keep. Again just my 2cents. Our financial situation was worse than yours, 200,000 in medical bills, and husband had just lose job and we actually qualified for SSI at the time. Now I am well, our business is prospering, we own our home, your family will be in my prayers.
My Cousin lost her job, had a car loan she was upside down in, the loan company lowered her payments to just the interest for about 10 months until she was back on her feet. You have a much better excuse than she ever did to miss a few payments, perhaps you can buy some time with the car payments this way? It may be worth a phone call to the holder of your loan see what the company can do. Just a thought- I wish your family well. 3 day
I thought you might be interested in this site.org. I don't know if they would be any help, but perhaps they are a place to start. 3day http://terminallyill.org/
If you can't find someone to take over the payments on the truck then take it to the bank that holds the loan on the truck. Don't take it to the dealer because they don't want it. Try calling the bank and working something out with them. I hope you speak to someone who is sympathetic and can help you.
