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I Have Lupus, Can’t Work and Ford Motor Credit is Suing Us Over a Lease. – Allison

“Dear Steve,

Married, Unemployed and going through a disability case for determination. My name is included on our house and 2 cars. My name is not on the bank account. Due to my disability, I had to quit my job and eventually my husband could no longer make my payments on my credit cards so we quit paying. Being sued by Ford Cedit for 2K for a lease turn in and have a pre-trial on May 9th. My husband makes too much and I fail the means test to file chapter 7.

I had to quit my job 2 years ago and was diagnosed with Lupus. My husband tried to pay the minimums on all my debt but it got to be too much so we quit paying. Total debt in my name with 4 cards is about 30K. Being sued by Ford credit for money I owe on a lease turn in. Their lawyer wants me to sign a blank consent judgment. I am scared to death and the stress is not good for my disease. What should I do? I live in Michigan. Please help.

Allison”

Dear Allison,

I hear you about the stress. It can exacerbate the underlying medical condition so let’s address it. But before I do I have some questions for you. You can post your answers in the comments section.

It seems that you are entirely over your head in debt. While your debts are 30K, how much do you guys owe together to credit cards?

It seems if you did get a judgment against you that would require a monthly payment to satisfy, if I read between the lines, it does not appear that you have much or any disposable income to direct towards that judgment payment. Since the car was in both of your names the lender could go after a wage garnishment against your husband unless you agreed to and made regular payments to satisfy the outstanding debt. With a budget that is stretched to the limit the chances of missing a payment are higher.

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But we can’t get tunnel vision and focus just on the Ford lawsuit. We need to look at the overall situation. If we simply react to this situation and you devote your available resources to repay Ford, what’s the game plan when the next defaulted debt comes after you.

Did the bankruptcy attorney tell you why you failed the means test? Was it on income alone?

Please post your responses and follow-up messages to me on this in the comments section below.

Sincerly,
Steve

You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.




About the author

Steve Rhode

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

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