Monday, January 19, 2009

Filing for Chapter 13

OK - spoke to a lawyer on Friday. Gave her 50% of the cost for filing... copies of my Credit Report, copies of my paycheck stubs, and copies of my taxes.

I filed my tax return on Saturday - with any luck will get the refund before she files the official paperwork so I can use that money the way I please instead of the way the trustee sees fit.

My wish list?
- Replace my broken printer (so I can start doing internet coupons) < $50
- Pay the portion of the lawyers fees I can't cover with my next paycheck (if I get it fast enough)... if it's too slow, I can pay with my second paycheck... but honestly? I won't get any of it anyway if it's too slow - around $300
- Pay for Kyra's Spay (six months overdue) & hernia repair - quoted around $300 - but am going to a new vet to try to get it for < $200
- Trip to NY???? to see the "real" Dr House hoping for flight for < $300 (average); and other expenses at $200-300 - since I'm still planning on getting to stay with Phil when I get there :-)
- Emergency savings ... should leave over $1000 after my other items are covered, if not more.

Am discussing options about my car with the lawyer. I LOVE my Toyota Rav4, absolutely love driving it, riding in it, having it. BUT, I do NOT love the fact that its now 5 years old, that I've spent over $3000 in repairs in the past 12 months, and that the interior is a bit the worse the wear (my own fault), nor the amount I'm paying/still owe for it. This is the first time I have ever driven the same car this long.

The good news is that it seems to still be running really well... and given what repairs I did have to do, there's no reason I can't put another 50K miles on it with minimal expense. The problem lies in the fact that I'm now making a car payment for $600/month on an older car... I owe approximately $16K on a vehicle that if I could sell it, would only sell for $9K.

I do not qualify for a new car loan... already tried that in November... If I could turn this car in and NOT still owe the balance $7K? Then I think I would. There's a local company that works with a lot of new "immigrants" (not sure they're all legal) - that will sell me a car for about $500/down and $300/month payments - however, there is no way to know if that car will last even 10K miles, let alone a couple of years. Driving to Iowa City twice a month so he can spend a weekend with his father is a bit dicier if you aren't driving a dependable vehicle.

It's an option... and if it could mean that I was out of trouble with the balance for the existing car loan? I may end up taking it. I'm still debating it... the risk of breakdown triples with an unknown vehicle... if I'm toast about the balance of the car loan? I might as well stay with my current vehicle (better the devil you know???). Either way, my monthly amount will probably decrease. However, instead of having this paid off in 3 years, I'd end up probably with 4 to 5 years before this car is paid off. So - we'll see. The lawyer is talking with the car loan holders to see what options they'll consider.

1 comment:

Carolyn said...

We are also looking into bankruptcy, in 2007 we had our house up for sale had a buyer so we moved to our new house. Well their financing fell through and then we couldn't sell so it forclosed, they now are after us for $48,000. Then we find out 3 days after moving here (from the health inspector) that our septic tank is illegally discharging in the neighboring property so we sued the previous owners and got half of the money we need to hook up to the new neighborhood going in down the hill (our property is not big enough to put a drainage field in)and if we don't hook up our house could be condemned! So anyways in March 2008 I lost my job so we sent out durango back which they sold for basically nothing and they want $16,000 from us now! Then in August I was hospitalized after getting my gallbladder out, they left a stone in my bile duct so I had to have major surgery to remove it and got pancreatitis! Anyway we are trying to come up with the money now for a lawyer so we can file as well, thought I'd share our situation with you and let you know your not alone! We are in Missouri ;)
Good luck with everything!
Carolyn