repo or bankruptcy

Anonymous · ‎11-13-2007

I am new to this forum and am very glad I found it. Here is my situation. Auto loan 26k two months behind with triad. Three small accts in collections. 2 very small credit cards. I make good money but mortgage is 3k per month its not in my name but my fiance but, I am obligated to pay it. I am a sallaried employee and have to maintain a seperate apt. where my job is which part of the rent I pay by working for landlord so there is not time for a part time job. This is a huge catch 22. My question is should I let them repo my vehicle and begin taking care of collections or, bankruptcy or try something else. I can't sell the vehicle for what I owe either. No matter how you do the math I have more going out than coming in.

Anonymous · ‎11-13-2007

Hi rmo, welcome to the forum. Here you will find a wealth of information to help you with your credit needs.

Tough situation. Sorry to hear of your problems. I feel your pain. I was once in a similar situation.

Have you called the auto loan company, to see if they would take those payments due and tack them on to the back of your loan? I did that with Ford Credit when I got in a bind a few years ago. Don't know how much that will help you out much though.

That is one whale of a mortgage payment. Are you paying it by yourself? If so, may I ask why? Is your fiance helping you out on the payments?

You are between a rock and a hard spot, sorry to say. A worse case scenario is to sell the house, as it's such a huge financial burden to you. I'm not suggesting you do that, but it is an option.

Boswd · ‎11-13-2007

Also you should really familiarize yourself with the new BK rules. If you make too much money you won't be able to qualify for Chapter 7, which wipes the slate clean. You are more than likely be filing Ch. 13 which is nothing more than a court appointed payment plan. Something you can do yourself without the big drastic hit to your credit.

I would call your creditors and try to work something out.

Anonymous · ‎11-13-2007

Thanks for your sentiments, the worst part is I make 100k for the first time in my life and am drowning slowly. Yes my fiance works and also pays daycare and utilities which adds up to about 2k a month. I have already had two payments moved to the back end of the loan. The real issue is I don't have hardly anything for bills but this mrotgage is a killer.So I am left with either selling or something else.

Boswd · ‎11-13-2007

Also instead of having them repo the car, and talking to them doesn't work, I would try and sell first and then pay back your auto loan with the proceeds from that. Repo will tank your score as well and will be a big derog against you when you are going to look for future auto loans and your interest will be astronomical.

Message Edited by Boswd on 11-13-2007 10:20 AM

Anonymous · ‎11-13-2007

I would love to sell but will probably fall around 5k short of what I owe

Boswd · ‎11-13-2007

still being $5,000 short will be much easier to pay back in the course of time and would be a much better option than having a repo follow you around for 7.5 years and the damage it will do to your score.

Message Edited by Boswd on 11-13-2007 10:24 AM

Boswd · ‎11-13-2007

rmo5095 wrote:
Thanks for your sentiments, the worst part is I make 100k for the first time in my life and am drowning slowly. Yes my fiance works and also pays daycare and utilities which adds up to about 2k a month. I have already had two payments moved to the back end of the loan. The real issue is I don't have hardly anything for bills but this mrotgage is a killer.So I am left with either selling or something else.

Yeah $100,000 a year you will only qualify for the payment plan aspect of BK.

How is your fiance's and your credit? If you are both doing pretty decent score wise than maybe look to refinance your mortgage with a different lender and add yourself to the mortgage so your income can be used in qualifing and hopefully with a better interest rate and montly mortgage.

Boswd · ‎11-13-2007

Also, if things are that tight maybe it's time to change some habits and cut some corners. It can tough and hard to get over but in can only be temporary.

for examble:

Do you have cabel? Digital with HD and with DVR and all that jazz? Swith down to just regualr analog cable. Right there will save about over $100 a month.

Everyone I assume has a cell phone? See if you can get some family shared minutes to save on monthly bills.

What type of modem do you have? Cable, DSL? Switch to dial up. Dial up has come a long way and isn't as slow as in the past. Plus it will save you anywhere from $40 to $50.

Have you and your wife pull you bank statements and see where alot of spending is going during the week that can be cut back on. ONe of the biggest and most over looked killer is eating out or take out. Big Killer. More grocery shopping and cooking home will save you tons of money. And also there is no shame in shopping with coupons. My wife and I save on average about $15 a week using coupons. And with that buy using them on only the things we would normally buy.

Where do you do you shop for your and your fiance's clothes? Again no shame at shopping at Wal-Mart or Target for shirts, slacks, shoe's etc. You would be surprised at how much you can save by shopping there. I love Wal Mart

These changes in spending habits can be tough and will be tough but you can do it.

Message Edited by Boswd on 11-13-2007 10:41 AM