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Greetings,
First time writing, but I've been reading quite a lot, and I am need of advice. I have a lot of debt, 5 credit cards totally roughly 18k in debt. The monthly payments for them are and have been getting too much for me to carry. I am strongly considering filing for bankrupcy, but I am worried about obtaining a car, or keeping my current car. I own a 12' Audi A6. I'd assume thats considered luxury. I only owe 17k left on it as put down 20k in cash early last year (bad decision). At the time, I could afford it, as I was in a reltionship where we split most bills, but when that ended, so did keeping up with sutff. I have never missed a payment on my car, and the monthly is only 450 a month. But that, in addition to the credit cards, rent and other misc items, I am living paycheck to paycheck, if that. I understand filing will hurt my credit for some time, and that I am willing to go thru, but again, I strongly desire to keep my car, as I can make the payments, and the fact I put down 20k. I figure if it did go, I wouldnt be able to get a car for a long time due to filing. also, the BB on it is roughly 21k, I know that would off most of my debt, but again, Id struggle getting a reliable car and still would owe on it. I work part time due to service related disabilities, but I make it with the VA benefits. I am not sure if that would play a role in determining me being able to keep my car, simply due to it being an Audi. any advice would be greatly appreciated
edit, i also live in northern VA if that makes a difference
You can get loans after BK it just takes a little extra legwork as people aren't going to just handthem out as freely as before. Your car you could most likely keep, because if it's worth what you said then you've got like 4k equity in it and depending on your state and the exemptions it might fall into that. Even if you didn't reaffirm it, you can keep paying on it and no one will take it from you and when it's paid off you'll get the title.
Have you thought about contacting a credit counceling service that's non profit such as Debt Reduction Services? Im not sure what your other debt is, but with the ccs they can get your apr lowered thus making your monthly payments smaller which would help and you'll get it paid off in a shorter time.
@Anonymous wrote:Greetings,
First time writing, but I've been reading quite a lot, and I am need of advice. I have a lot of debt, 5 credit cards totally roughly 18k in debt. The monthly payments for them are and have been getting too much for me to carry. I am strongly considering filing for bankrupcy, but I am worried about obtaining a car, or keeping my current car. I own a 12' Audi A6. I'd assume thats considered luxury. I only owe 17k left on it as put down 20k in cash early last year (bad decision). At the time, I could afford it, as I was in a reltionship where we split most bills, but when that ended, so did keeping up with sutff. I have never missed a payment on my car, and the monthly is only 450 a month. But that, in addition to the credit cards, rent and other misc items, I am living paycheck to paycheck, if that. I understand filing will hurt my credit for some time, and that I am willing to go thru, but again, I strongly desire to keep my car, as I can make the payments, and the fact I put down 20k. I figure if it did go, I wouldnt be able to get a car for a long time due to filing. also, the BB on it is roughly 21k, I know that would off most of my debt, but again, Id struggle getting a reliable car and still would owe on it. I work part time due to service related disabilities, but I make it with the VA benefits. I am not sure if that would play a role in determining me being able to keep my car, simply due to it being an Audi. any advice would be greatly appreciated
edit, i also live in northern VA if that makes a difference
If you would qualify for any form of bankruptcy at all, it will probably be ch 13 with no more debt than that. In a chapter 13, you pay the secured creditors first and after all secured creditors are payed off, you start paying the unsecured creditors. It is sort of like a means tested consolidation, in that you have one monthly payment to the trustee, and he pays your creditors. You normally do not have to surrender any personal property, and it will last 3-5 years. I would add that the monthly payment is based on what you can afford to pay after all other expenses...rent, utilities, etc. If you qualify for ch. 7, you are allowed about 5000 exempt for an auto, and about 5000 for wildcard. This would be more than enough to cover your equity in the car. Basically, you could keep the car if you choose to reaffirm that debt. The exemptions do vary by State, so you should consult an attorney. A good, reputable BBB aproved financial counseling service may be the best option in your case....they can even sometimes get some of the debt forgiven.
The Sarge is correct, try to avoid BK being 18k in debt. As mentioned try to look into consumer counciling or contact the creditors directly and explain your situation.