topic Re: Back on the chopping block. in Bankruptcy

Back on the chopping block.

Superk88 — Wed, 15 May 2019 21:55:05 GMT

So after being laid off, and now finding a new job things are getting worse. I am considering filing a chapter 13. Reason being is that I cant pay my Bill's. I've met with one attorney and after looking after my depth he said keep my truck payment and then give up my two motorcycles which I cant seems to sell and then payback some of my debtors. Said he sees me getting a payment around 500 a month which is wayyyyy less than I am forking out now. I wish I could do a 7 but it's only been 5 years since my last 7. Life seems to be kicking me in the teeth. I have a wonderful fiance whom I dont deserve. She helps me out but sometimes I feel like I could run away so she doesnt have to deal with this mess of mine. I'm gonna try and post a copy of my spreadsheet on the next post. I'm on my Mobile so I hope it works

Re: Back on the chopping block.

Superk88 — Wed, 15 May 2019 21:57:15 GMT

MONTHLY BILLS
RENT
CELL $110
TV $155
GYM $53
CAR INS $150
BIKE INSUR $142
TOTALS $610
SECURED DEBT
F-150 $45,100 current $720
RAIDER $13,950 current $265
DUCATI $11,600 30 days past $282
TOTALS $70,650 $1,267
UNSECURED DEBT
MAINE ONE $7,740 current $228
NETCREDIT $6,311 current $360
REGIONAL $2,469 current $130
RISE $2,489 current $389
CAPITOL ONE $2,500 90 days past $80
CITI A.A $1,600 90 days past $60
AVADIAN $730 30 days past $45
AMAZON $688 30 days past $35
GAMESTOP $210 current $20
A.E. $155 current $50
PAYPAL $190 current $30
TOTALS $25,083 $1,427
TOTALS $95,733 $4,732

Re: Back on the chopping block.

Superk88 — Wed, 15 May 2019 21:57:53 GMT

That came across really skewed. But on the amounts its Balance/payments

Re: Back on the chopping block.

JTC-137 — Thu, 16 May 2019 00:04:30 GMT

If it were me, vehicles are gone ASAP. All 3 of them, and replaced with a 2k cash vehicle. In the next breath I’d cancel tv, gym membership, lower cell plan to one of those $50/mo plans, and drop insurance premium with a higher deductible. Make cuts anywhere and everywhere you possibly can. That’s $1,800/mo back in your pocket to throw at the other debt, which is gone completely in 13mo assuming you didn’t add another penny to go along with that 1800. You’d pay off your 5 smallest unsecured accounts after month 1.

Looking at the ch7 filed 5 years ago, you’re definitely going to have to make some lifestyle changes, as in I wouldn’t touch another credit card for like 10 years, if ever again. Same with auto loans. Not trying to be harsh because I’ve also been there. I wish someone would’ve said this to me before it was too late. Sometimes we miss the most simple, obvious solutions like changing phone plans. )Obviously that alone won’t do it but lifestyle adjustments do really add up.) Ultimately it’s up to you whether or not to file; I didn’t see income mentioned but if you can manage to make the above changes or something similar there’s a way out of this.

Re: Back on the chopping block.

Superk88 — Thu, 16 May 2019 02:06:05 GMT

Trust me i have had the 3 auto loans advertised on every platform. Problem is 2 if them. The 2 highest I'm upside down on the loans. Cant get what I owe.

I had a 92 c1500 truck I wish I could get back...I'd take that in a heart beat right now.

Re: Back on the chopping block.

hashtag — Thu, 16 May 2019 02:43:01 GMT

Here is my suggestion in order to avoid having to file a second time:

Go to the lenders that gave you loan for car and bikes and explain your situation. Make them understand that you cannot afford to pay, but you want to make good on your commitment. Convince them to take the vehicles back and give you a personal loan in the amount for the difference of what is owed and what they are worth. (ex: if the truck it worth 35K and you owe 45k, let you make payments on 10K). If you dont have have cars and motorcycles, you dont need insurance or gas to fill them up. Gas will save you likely another 200-300/month. As for getting to work, have your fiance pick you up and drop you off or use uber/lyft. might seem counterintuitive but you will spend less than your vehicle payments guaranteed.

Doing this will save you $1559/mo. and leave you with a much more manageable payment on the upside down money. Save another $278 by switching cell carriers to metro or boost short term, get rid of tv and gym...those are luxuries you cant afford right now.

That leaves you over $1800+ to throw to your debt in order of smallest to largest debt. That clears your 5 smallest debt instantly. You continue snowballing it and in less than 1 year you are debt free from all but the negative equity on vehicles. Since I dont know the amount I cant tell you how long that will take.

You indicated you live rent free, so continue doing that for another year and get out of this mess. Like others suggested, lay off credit until you can prove to yourself that you have money in cash to buy what you want.

Just some cold hard truth. Good luck

Re: Back on the chopping block.

JTC-137 — Thu, 16 May 2019 03:15:44 GMT

@hashtag your first paragraph is a great idea to cover that deficit! I was leaning towards giving them back to the bank, seeing as there’s already a bk on record and just deal with the deficit later. Your idea is much better

OP, try listing them for less and talk to the bank like mentioned above. Saving 1800/mo will have you caught up in no time. And I hear ya on the oldie but goodie...after my bk I bought a 20yr old vehicle and will drive the wheels off that sucker lol. Before bk I had a 60k truck 😳 Never. Again. I still look back on those $900 payments and just shake my head.

Re: Back on the chopping block.

Superk88 — Thu, 16 May 2019 19:07:39 GMT

@hashtag thanks.

So what has happend today. I spent enough monety to get all of my smaller accounts current. She also transfered the gym membership into her name (she is in the military and has to keep a regime going also it's our stress reliever). Just took out tv off internet...got internet for 35 a month, cell is now gone.

The ducati motorcycle is financed with VW credit, they don't do any private loans.

I emailed the Credit Unions that hold my truck and the other bike...waiting to see what they have to say. I instantly found out that I can use a hardship on my truck on not pay that payment next month if worse comes to worse.

I'll admist I am terrible with money...Just terrible and I've got to change.

Re: Back on the chopping block.

JTC-137 — Thu, 16 May 2019 20:56:50 GMT

Very nice!!! That’s an excellent first step, and the fact that you not only acknowledge there’s a problem but are addressing it head on is great! It takes guts, it really does.

So from here I’d sit tight until you hear back from the credit union. If they’ll work with you to get the truck and bike sold, start stashing money like crazy to either 1. buy you a cheap cash car if you need transportation or 2. Put with the loan that VW holds. (Don’t forget to update your insurance policy when you start shedding vehicles.) If you have to sell it for less than you owe and make up the difference out of your pocket that’s fine. At least it’ll be gone and you can start the next step.

You’ve already completed the first step by making the adjustments to utilities. The next one is the big one which is getting rid of vehicles. After this is done you’ll knock out the rest of the unsecured debt ridiculously fast and start seeing your bank account flourish.

Some things that helped me were to stop using credit cards altogether and live on a cash only diet. Admittedly I tried to dip my toe in the water after being discharged from ch7, but quickly saw the temptation to pay later and decided to cut ALL of them up. I’d suggest cutting all of yours up as well. Next, develop a budget listing out any and every expense you can think of. Don’t stop at bills go ahead and list gas, groceries, Netflix, socks, etc. Anything you can possibly think of. Try to adopt the attitude that if it’s not in the budget you can’t afford it. You’re doing great so far keep it up!

Ps....he’s a four letter word to some but I started listening to Dave Ramsey’s show after bk. He’s got some great advice on budgeting and handling money that helped me immensely and really jump started my recovery.

Re: Back on the chopping block.

Harriet — Thu, 16 May 2019 21:10:14 GMT

I highly recommend Gail Vaz Oxlades books on getting debt free. My library had one of her best sellers. She also has a blog and her show "Til Debt Do Us Part" is free on youtube.

I'm binge watching them and getting it in my head how to live on cash and stop using credit cards. How to budget etc.

Are you not near a base? My base gym has 24 hour access and its of course free. Can you dump the gym and she works out there, after or before work etc.

I also use puppy wireless as my cell provider. I have an iphone and just bought their sim card for 10$. For 29$ a month I get 2GB data and unlimited talk and text. Verizon towers, I get excellent service. You need a verizon phone, easy to buy or sell them on ebay.

For six months I tracked every penny I spent. Save receipts, make a note on your phone when you spend something. It's an eye opener and it's not too hard. Just keep a few categories running on your phone like food, gas, eating out etc and write everything down. After 6 months you'll have a good idea where your money is going and what you're spending which is a very important step in managing your money.

Good luck, dont feel bad for not being good w money. You're aware of your situation and doing something about it. That's a big step.

Re: Back on the chopping block.

Superk88 — Fri, 17 May 2019 18:00:22 GMT

Alright so I hurd back from the Credit Unions and I can't get a signature or personel loan for the difference. I will have to have a co-signer which I don't know anyone unless I went to my Mom or Grandparents for help which I do not want to do.

I have $857 bucks to my name right now..not savings. I have to pay both bike payments this month rounding up a little to $600 and partial payment to netcredit which is $180. I will only be bringing home 800 a week. So at this current month I have $780 in payments coming out and another $1500 coming in. Rounding down because we will loose a day for Memorial day.

So...can't get a loan for my negaive equity. The 1 bike I am not upside down on...no bites.

Still feeling like I dnon't know what to do. Part of me want's to File 13, maybe try to get a 3 year repayment...part of me wants to hash it out and deal with whatever may comein 3 years.

Re: Back on the chopping block.

Superk88 — Fri, 17 May 2019 18:05:34 GMT

Something else also just came up, and I keep telling myself....

DEBT ISN'T THE AWNSER, DEBT ISN'T THE AWNSER, DEBT ISN'T THE AWNSER.

A friend of mine who works at a kia dealership told me he could probrably get my truck and 1 bike rolled into a cheeper car..get rid of that $720 a month payment and that $300 bike payment and $130 bike insurance down to maybe 550 or 600 ish. But then again I am upside down and stuck in a car...thats a short term fix to a long term problem right. lol

Re: Back on the chopping block.

JTC-137 — Fri, 17 May 2019 22:27:49 GMT

I’m surprised they weren’t willing to work with you given the situation. So the options are:

1. Ask someone to co-sign (don’t blame you for not wanting to go this route)
2. Consolidate 2 vehicles into 1, going from 1150/mo to 600, saving 550/mo.
3. Let the vehicles go, negotiate settlement later, ruin your credit
4. File bk, erase all debt, destroy your credit

I would really like to see you get out from under these vehicles. Do you have retirement you can pull from? If not, knowing what I know now, I probably would ask for the co-sign and knock it out asap. It’s kind of like option 2 above in that you’d be taking on debt again. But I’d hazard a guess and say a loan to cover the difference would be $10k vs. financing another car would leave you with $30k. Yeah I think asking for a co-sign is the route I’d take at this point to salvage everything. How dire is your situation? Are you able to survive if you take some more time to get these sold?

I’m curious to hear what others think on this one after your latest update from your bank, there’s some brilliant and creative members here

Re: Back on the chopping block.

Superk88 — Mon, 20 May 2019 02:04:53 GMT

I'm definitely open to all advice. My fiance's credit score is danm near perfect a d our 1 goal is to buy a house in 2 or 3 years. That's the only thin I ever want to finance again. At 1 point in my time I was debt free...I drove 5-8k paid for cars and had one credit card for emergencies and I cannot wait to get back to that.

Right now I feel like I'm drowning in payments. Its getting to the point of effecting me emotionally.

After here bad news I feel like I have 3 options s

1) Ask my mom or Grandparents for help...either by co signing for a loan to be le to sell vehicles or whatever they are willing to help. The reason I havent is that I'm 30 and never ever took a handout from my mom or grandparents. K hate asking them for help. I'd I did....I would feel like I'm disappointing to them.

2.) Let the bikes go...use that $700 + dollars to chip away at debt.

3.) File bk13 a d hopefully have enough money to love on after they set my budjet.

Re: Back on the chopping block.

Superk88 — Mon, 20 May 2019 21:06:15 GMT

Also one more question. With my new job I work overtime, but it is never a guarenteed amout that we work. Will they put that into the plan or base it off of 40 hours.

Guys any help or suggestions is appreciated.

Re: Back on the chopping block.

Superk88 — Wed, 22 May 2019 19:14:11 GMT

Well going for a consultation tomorrow. Briefly talked to the attorney over the phone. He said we might can get a chapter 13 done...if I make enough to pay the payment. Gonna surrender everything

Re: Back on the chopping block.

Anonymous — Wed, 22 May 2019 22:43:37 GMT

Depends on how much of a difference it makes to your 6 month salary average. DH stopped working overtime until after we filed on the advice of our lawyer. However, after our mortgage, we had very little disposable income so our Ch13 payment was fairly low.

hoRe: Back on the chopping block.

Superk88 — Thu, 23 May 2019 12:18:48 GMT

I'm hoping I can get a low payment. Bad thing is, there is no way to tell and once I would be to file they told me to not pay anymore bills.

Re: hoRe: Back on the chopping block.

Anonymous — Thu, 23 May 2019 13:34:57 GMT

Do you have an idea of how much disposable income you have after all of your expenses are paid?

That will give you a rough idea of the amount that may get used for Ch13 payment.

Re: hoRe: Back on the chopping block.

Superk88 — Thu, 23 May 2019 14:30:34 GMT

Just rounda bout calcuation without going super in depth with it I would have about 800 disposable income