Financial Woes

[cambraceres]

Hello Finance people, perhaps you all can assist me with a decision I must make. It has to do with bankruptcy law. now I know the best away to go with almost any question here is to simply ask a lawyer; old fashioned consultation, but I haven't the time for all that. A friend's mom told me to call her with any questions as she is a bankruptcy lawyer, just one that is too busy to handle my difficulties personally. Anyways, she is out of town and I must choose soon.
First, I will say that I have planned to file for bankruptcy. I plan to do so to get rid of debt from a car and the various things involved in open heart surgery. I have no assets to speak of so no worries there. I have a car I was able to purchase under bad conditions, mainly that it must be fully insured and the rate is bad. Well anyways, due to a drinkng charge I must have SR-22 insurance as well, but only for 6 months. The problem is, my wages are garnished still, and sr-22 insurance will be like 1100 dollars for 6 months, on top of the already high car payment itself. In the end, this insurance will cost about 1/3 of the total value of the car, which had to have 1500 in woek last year. I am thining of allowing the dealership to repossess it, and then riding the bus for a while to save up loot to buy a used car from a private citizen.

My question is, how does the law change with two repossessions instead of one, or does it?

I must choose before paying my net payment of Friday, oh yeah, and I live in Va.

Any help is appreciated, thanks all.

Cam

[bonds]

Cam:

Are you planning to file Chapter 7 or Chapter 13?

If you're looking at a 7, you generally (and I am not giving legal advice) will have a choice - you can keep the car and pay for it as agreed by signing a reaffirmation agreement, or you can surrender it, walk away and get rid of the debt. If you're thinking about keeping it, you'll need to be current before you file.

It doesn't matter how many repos you have - once the finance companies have their vehicles back, any deficiencies are unsecured debt and (again, generally) will be discharged.

If you're thinking of a 13, I really can't say. I haven't paid enough attention to how the 2005 bankruptcy law would apply to your situation.

What does the garnishment relate to? You know that most garnishments stop when you file, right?

[Cubswin]

As a percentage of salary, how much debt are we talking about?

[cambraceres]

I was thinking of chapter 7, and actually my choice just became much easier. I was pulled over this morning, and because of Virginia's rather tight laws, that will carry significant fines. In better news however,the car should have been impounded by law, which would cost around 650 dollars. The police officer pulled me over, ticketed me, then left me with the car!?!?!

But whatever, I'm going to let the repossession happen and bike it for a few months until I buy another.

We're taling about 8,000 in car debt and another 5 in medical, with another few thousand coming soon on the medical side. My wages as of now are about 18000 a year, with side income that I can't well estimate.

Thanks for your help guys.

Cam

[mtgordon]

Not trying to kick you while you're down, but make sure you are making wise decisions in the future. I'm assuming that you got pulled over for speeding or some other such violation. If you cannot afford the ticket you absolutely should not be speeding. Make sure there aren't other things in your life that you just do because they are convenient and you are hoping they won't go poorly for you.

[cambraceres]

[ QUOTE ]
Not trying to kick you while you're down, but make sure you are making wise decisions in the future. I'm assuming that you got pulled over for speeding or some other such violation. If you cannot afford the ticket you absolutely should not be speeding. Make sure there aren't other things in your life that you just do because they are convenient and you are hoping they won't go poorly for you.

[/ QUOTE ]

Sage advice, and much appreciated

Thanks everyone

Ciao