What should I do next?Im not saying that im filing bankruptcy chapter 7 because i just recently fail behind on my car payment. I had the car for 2 years now. I just wanted to know is it best for me to continue to file chapter 7 or move to chapter 13.
Can you make the regular payments going forward? C Come current.
If so call the lender and see if anything can be worked out.
Of course if u have a lawyer have him do it.
Chapter 13 is also a possible option.
We always try to have clients that want to keep the secured assets to be current when hey file.
You need A car. You need to take a hard look at whether it will be THAT car. Time to downsize to a cheap running car if you can't keep up payments - and it may not be wise to have payments you cannot afford right after a chapter 7. If making up TWO car payments is impossible after a chapter 7, you are almost certainly cutting it too closely with the size of those payments.
This should not be considered legal advice and is intended for educational purposes only. It does not constitute a contract for legal services between any parties. Answers are given to questions for which there may be additional facts not mentioned which might change the legal issues or consequences.
Chapter 7 is not necessarily the ideal bankruptcy chapter to use if the primary goal is to retain a vehicle that you are past due on. Nonetheless, there is hope. Option 1: Either you or your attorney contact the lender and try to see if terms can be worked out in connection with a reaffirmation agreement. Option 2: You may qualify for redemption financing (or a family member may provide the funds) and redeme the vehicle (by redeming you pay only the FMV of the vehicle in a lump sum - ideal if you are underwater on your car loan). Option 3: Do your best to catchup your payments during the brief time you are in chapter 7. Hope this helps and good luck!
I agree with Mr. Popovich that it is time to downsize. Chapter 7 is a wonderful opportunity for a fresh start in life, without overwhelming debt. But you can't file chapter 7 again for another 8 years! So don't reaffirm that car debt and instead use this opportunity to live within your means, even if it is really difficult. I put myself through school and many of my colleagues did as well, so we've been there.
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