topic Re: My ridiculous financial situation....surely chapter 7 is ok? in Bankruptcy

My ridiculous financial situation....surely chapter 7 is ok?

Anonymous — Sat, 08 May 2021 18:53:44 GMT

I know that you guys cannot give me legal advice but just your opinions based on my basic situation, can you tell me what you think?

My only source of income is social security disability. I live far below the poverty level and make about $17,000 per year. I had a major health catastrophe and unfortunately ran up some credit cards. I owe about $10,000 to all creditors combined. I do not own a house. I own a 2008 diesel truck valued at about $25,000, also a 2004 Hyundai car valued at about $800. I also own a 2001 horse trailer worth about $4,000.

My particular state does not have any exemption for vehicles but allows $10,000 in personal property and you can declare whatever you want as the property.

I absolutely cannot lose my diesel truck because it is my only reliable vehicle and is in the best shape of the two vehicles.

Since I can only keep $10,000 of personal property and the one vehicle I want to keep is worth $25,000, does that mean I automatically lose that truck? I've been reading articles and these groups for days and I cannot figure out any answer to this.

Re: My ridiculous financial situation....surely chapter 7 is ok?

mich800 — Sat, 08 May 2021 21:24:09 GMT

Are all the vehicles free and clear, no loans?

Re: My ridiculous financial situation....surely chapter 7 is ok?

despritfreya — Sat, 08 May 2021 22:20:50 GMT

If the truck truly is worth $25k, and you do not owe any money on it, and less than 1/2 of its value is exempt, and you don't want to lose it to a Trustee, you should stay away from Chapter 7.

How about selling the trailer and the other vehicle - then use that money to try to settle with your creditors. Filing bk over $10k is probably not the way to go.

Next step is to discuss this with a local attorney.

Des.

Re: My ridiculous financial situation....surely chapter 7 is ok?

Anonymous — Sat, 08 May 2021 22:34:12 GMT

You could sell the vehicles and get a reliable cash vehicle for less money. Then, you would have some money to devote to bills. Maybe then you wouldn't need to file at all.

Re: My ridiculous financial situation....surely chapter 7 is ok?

Shooting-For-800 — Sun, 09 May 2021 01:04:14 GMT

There is a very good chance you will lose the truck.

I would not pay anyone and reevaluate in a year.

You are very hard to sue due to your income.

I would sell everything you own of value minus the truck.

You should be able to settle $10k of CC debt for $5k.

The longer its been since you paid them, the more chance of them taking a lower balance.

Open a two new checking accounts at a bank you don't have a card with.

Pay everyone one by one out of an account you move money in just for that payment.

Again, you are difficult to sue, so I would not just into a BK.

BTW your attorney will cost you $1k-$3k so that is half as much of settling.

GL!

Re: My ridiculous financial situation....surely chapter 7 is ok?

CosmicCash — Mon, 10 May 2021 23:47:58 GMT

I agree with 800 here, it doesn't make much sense in your situation to file for Chapter 7. Your assets are worth quite a bit more than your debt. ($29,800 vs. $10,000) Like others have suggested work out a settlement with your creditors and use those assets to pay off.

One scenario is swapping your $25,000 vehicle for a less expensive one and pay off a negotiated lower amount with the creditors. Win-win. Good luck!

Re: My ridiculous financial situation....surely chapter 7 is ok?

luvsandyshores — Tue, 11 May 2021 19:25:47 GMT

Used trucks are in high demand right now. You'll get at least what it is worth, and should be able to use that money to pay off the CC debt and still buy another reliable vehicle.