“Dear Steve,
My husband lost his trucking business 2 years ago, in turn, we lost our house to foreclosure and turned in our tractor trailer to the credit union.
We bought our in-laws house, so we have a place to live. We are paying their mortgage and deed is still in their name for now. After the credit union sold the truck, there was a deficiency balance of $41,000 (gulp!). The credit union was suing us, I made arrangements to make payments of $250 a month, starting last February. I unfortunately missed 3 payments, they went back to court without notice & won the judgement since we missed some payments. I had no choice, as my husband is not currently working, it has been tough, as we have a 13 year old daughter to raise. I now know the next step will be to garnish my wages or bank account. Garnishing my wages will take $617.00 a month from our budget, no way can I do that, I couldn’t afford the $250 a month payment.
I always felt like doing a Chapter 7 bankruptcy was best for me, even before agreeing to the payments of $250 per month, but I let my boss talk me out of filing a BK.
My husband is unemployed, we meet the income guideline, etc. It would take us 14 years to pay this debt off at $250 per month, I would be 67 years old by then! Our credit is already ruined with having the voluntary repo and foreclosure.
I have been told we would regain our credit faster by starting fresh with a bankruptcy. The only credit I worry about ever getting again would be for a car when ours dies. We don’t have credit card debt, etc. Just mortgage and car payment loan. Car payment is with same credit union that foreclosed our house and sued us for truck balance. We owe 2 more years on the car. The credit union told us they will not give us our car title even after it is paid off until the truck balance is paid! The car is 8 years old now!
I would be the only one filing Chapter 7, as my husband has some family land in another state he shares the deed with other cousins, he can’t file owning that land we have been told. (I don’t want to do a Ch 13 BK.) But, since he does not work right now, I thought I would just file? What do you think I should do? I worry a BK will ruin us forever?
I really felt a moral obligation to pay this money back, but now since they will not accept the $250 a month payment anymore and got a $41,000 judgement against me, knowing I was the only one working and doing the best I could, I have a different attitude. I just want some peace and be able to provide for my family.
Thank you for your time.
In your opinion, should I file a Ch. 7 Bankruptcy?
Sally”
Dear Sally,
Your boss was wrong in my opinion. A chapter 7 bankruptcy will help you recover quickly and allow you to get the protection afforded to you under the law that you are entitled to.
I think your boss is making an uninformed decision based on assumptions. When people do that, rather than considering the facts, they cause people to make silly choices.
Please take some time to review the links below and use those facts help you to make a decision that is best for you and your family.
Please post your responses and follow-up messages to me on this in the comments section below.
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