Overhaulin'

Questions about bankruptcy, car payments, and debt.?

I am interested in filing for bankruptcy. Last summer I bought a car and a week later my husband lost his job. I got a medical loan to help with a medical procedure last fall and got a new credit card to help pay the difference since we'd had about 2 months without his income. After this I found out he had relapsed and has been using our money to buy drugs (he had been clean several years before we got together). For a while his paychech was on direct deposit into our joint account, which is now severely overdrawn because of his bad checks. Now he has his own account and I can't access it and therefore can't pay the bills. I recently lost my job and despite the fact that I am a great employee, well educated, polite, and professional I can't find work. My life has come crashing down and I am seriously considering bankruptcy. I haven't made the best decisions but I've tried my hardest and I don't know what else to do. My questions are: 1. If I file for bankruptcy do I have to sell my things, will they be taken in order to pay for our debts? I do have some items of monetary value but they all have tremendous sentimental value to me and you can pry them out of my cold dead hands before you can take them from me and sell them. 2. Can I keep making payments on my car and keep it? I live in the country, I need my own transportation no matter what or I'm stranded. 3. What about this recent debt, I know November was not that long ago for eveyone else but for me it feels like a lifetime has passed, is this too recent to be wiped clean? And for those of you wondering why I'm not divorced yet, I want to clear the slate first so I can make a clean start for myself, I can't afford to carry all of this with me. Thanks for any help you can provide! Okay, some things to clatrify: 1. How will "they" know what stuff I have? Anything of value was passed down to me from family, hence sentimental value. There is no paper trail of receipts or any documentation of any of this belonging to me. 2. I can't move, I have time left on my lease and animals, I need the house and the property I'm renting and because I live in the country the rent is cheaper. I have a friend looking for an apartment in the city and he's going to pay the same amount for something much smaller. Don't even suggect getting rid of the animals, I'd rather die than give away my family. I need help but I'm not willing to write my self a one way ticket straight to Hell (figuratively and literally). 3. I'm making paymemts on my car, I can't sell it. I don't have the title, I'm making payments.

Public Comments

1. I will answer the parts I know and present you with additional questions you may not have considered. 1- Yes, things of value are sold. Furniture and other possesions are taken by your creditors. They typically won't leave you with nothing (leave some dishes and your clothes). However, I'd conisder "giving" your personal valued possessions to a family member and then "buying" them back later. If it is in someone else's name/posession they can't take it if it's not your's. Of course if you do this w/ every single thing in your house that might look suspicious...? 2- No. This is what I believe happens. You declare bankrupcy on your car and now don't have to pay the loan (sorta forgiven) and then the creditor will take the car...as payment for the loan. So, you can't go half way on bankrupcy. There are different forms of bankrupcy though so you maybe able to talk w/ a professional about this. 3- Yes, all debt is cleaned w/ bankrupcy. You file it on your court request and it's clean. I would recommend talking to a professional at your bank and see what options they can give you and see what help they can provide. Get a small appartment, a roommate (close friend/family), live in the city and keep job hunting. Are you sure you want to file bankrupcy b/c it stays on your credit 7 years! Sounds like you need to file papers and see if you can get your husband to pay up. Also, if the debt is in both your names I'm wondering if you need to file for bankrupcy jointly? Please talk to a banker about this as well. Good luck! ADD Clarification---> 1- Sentimental value means nothing if you owe your creditors money. That's why I suggested to give your most valued things to another memeber of you family at least for awhile so "they" aka collectors for your creditors won't take them. The collectors (they) will come in and take possesions of value. There is no need for a paper trail. They won't be looking at statements they'll be in your home collecting. Now, I'm not sure how it all works exactly but, collectors come in acess the value each idem could get and take them and give the money they recieve for selling your idem to the creditor. Sadly, sentimental value means nothing. So, say you recieved a doll collection from your grandma. There are 3 dolls in the collection that are in demand and could get a good market value...that's all the collector cares about. If it has a high market value...it's an asset for you and it must be sold to pay your creditors...that's what happens in bankrupcy. All your remaining assets (although small) go to the creditors. 2- Okay, I was confused about the house b/c you made it sound like you had a morgage. If you have time on the lease continue but, I suggest you move in w/ your friend. If you live in the city it will save on transportation costs. As for not getting rid of your animals and other comments...I'm confused. It sounds like you're unable to afford these animals now. Perhaps, now would be a good time to sell them or find them a good home? This is a major expense and will only get more costly. If you keep on their expense you may be doomed to only get yourself in the hole again. I have animals and love them too but, it's very important to budget properly. How do you plan to continue to support these animals? Will you be able provide for them? 3- Your car will be repossed by the person you're making payments to.
2. 1. If you file for bankruptcy, you might have to forfeit certain assets, such as a plasma TV or vehicles. You are allowed to keep personal items like clothing and cereal bowls. The main thing is that you can't claim "sentimental value" for things that are really financially valuable, like if you had a diamond tiara or a fur coat. 2. Not sure about the car, but you might have to sell it and get something cheaper. If it was something like a Lexus, say goodbye. 3. If you declare bankruptcy, it will stay on your credit report for 10 years. It can also take a few months before the paperwork is processed and it actually hits your report. So you wouldn't see the last signs of it until something like summer of 2019. Whether your debts are wiped clean depends partly on what kind of debts, and partly on what type of bankruptcy. Chapter 13 has you set up a payment plan and repay all your creditors, while Chapter 11 has you say you'll never be able to pay. If you have student loans, bankruptcy will not affect them and you'll still owe. As long as you stay married, you are still responsible for debts your husband runs up. Anything you owe after bankruptcy is declared is a "fresh start." You can't declare bankruptcy a second time for 10 years, so you would be stuck paying.
3. There are exemptions for personal property, cars, etc. You can google them to find out what yours are for your state (ex. California Bankruptcy exemptions). The value of your property is whatever they would go for in a yard sale. So, even if you have a $1000 TV, you might only be able to sell it in a yard sale for $300. As for your cars, if you owe more money than what they are worth, you can keep them and sign a reaffirmation agreement with the lender. If they are worth more than what you owe, then you have to see if they fall within the exemption limits. Recent debt is dischargeable, as long as you didn't obtain it fraudulently (ex. you charged a bunch of stuff on your credit card knowing that you would file bankruptcy and not have to pay it back). There are plenty of websites (Nolo.com is one of them) that will give you good info on how a bankruptcy works. Good luck.