topic Re: Chapter 7 BK: Secured HVAC Loan. in Bankruptcy

Chapter 7 BK: Secured HVAC Loan.

Anonymous — Mon, 14 May 2018 22:29:50 GMT

First, Hello! and Help!

In the last few years, I have had 2 AC's in my home go bad. I had them replaced with a loan from WF. Without going into a sob story ( I could share that later), I have had to declare BK recently and I included this loan in the case as it one of the highest monthly payments I have.

I am being told by my lawyer that the debt is secured by the HVAC unit and I have three options

1. reafirm the debt and contune making payments.

2. Try to settle the debt for less

3. Do nothing and see if the Bank either:
A: Rips the AC (or the outside units) from my home or
B: Sue me in small claims court and see how much the judge will give them.
C: Do nothing ... which isn't likely..

I Feel stuck as I dont have the money to do option 1 or 2 and I also dont want to suffer a loss for option 3 as I cant afford another lawyer.

My lawyer was kind of a jerk and told me option 4 was to walk away from my home as I obviously cant afford it.

So what has been any of your expereinces in a situation like this. I want to be able to pay it and have been for a little over two years but can no longer...

It alsmost fells that in this particular debt im going BK and ruining my credit for nothing.

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Re: Chapter 7 BK: Secured HVAC Loan.

Anonymous — Mon, 14 May 2018 22:54:33 GMT

This may not apply to your case at all, but I included two loans in my bankruptcy that were secured by property. (just had my 341 meeting last Friday). My lawyer filed a "motion to avoid lien" for my secured property. Again, this may not apply to your case, but maybe it's something to look into, and maybe some of the more seasoned posters here may have more information.

Re: Chapter 7 BK: Secured HVAC Loan.

Anonymous — Tue, 15 May 2018 20:33:33 GMT

Claim your AC units as a property exemption. Depending on what state your in and if you have a wildcard exemption you should be able to cover the fair market value with your exemptions. You would need to file a homestead declaration with your county/city recorder with the courts.

Re: Chapter 7 BK: Secured HVAC Loan.

Anonymous — Tue, 15 May 2018 20:38:20 GMT

No way to make the payments with funds freed up from not having to pay other debts?

Do you have equity in this home?

Re: Chapter 7 BK: Secured HVAC Loan.

Anonymous — Thu, 17 May 2018 21:28:17 GMT

This BK is not a finacial boon for me. I know some folks go BK and afterwards have tons of money that is suddenly freed up.

Not in my case.

I have taken a substatial cut in pay after being laid off almost two years ago. This BK is just to try to get me back to the place where my budget is back in the black, so its not as easy for me to say I'll just keep paying it with money that is freed up from the BK as I wont have much.

Man, it stinks to have to type that.

Re: Chapter 7 BK: Secured HVAC Loan.

Anonymous — Fri, 18 May 2018 12:17:41 GMT

While your lawyer's delivery of the words was harsh, perhaps there is some truth in not actually being able to afford this home?

I say that with the thought that if you can't make the payments on this repair, it doesn't sound like there's money in the budget for any other kind of repairs down the road. Living like that will always have you on the brink of financial ruin and will negatively impact your rebuild.

If you don't have equity in the home, I think I would bail and rent a place. If you have equity, you need to take in a roommate or increase your income to be able to afford it and hang on to that equity.

Re: Chapter 7 BK: Secured HVAC Loan.

Anonymous — Fri, 18 May 2018 12:20:30 GMT

Additional option:

If you can rent this place out for enough to cover the mortgage + the HVAC loans, rent it and go live somewhere cheaper (or better yet, free) for a couple of years until you're above water again.

Re: Chapter 7 BK: Secured HVAC Loan.

Anonymous — Tue, 22 May 2018 13:50:08 GMT

I did some digging around this weekend and think I have come up with enough stuff to sell that I may be able to offer WF a lump sum for the ACs. I hope they go for it.