My husbands car, that is in his name is about to get repossessed. Like today. There is nothing we can do about it, we simply cannot pay for it. There is no option- either eat or pay that car payment. He got it before he was married and before we had a baby.
So when they repossess it I know there will be around a $15,000 deficiency when it is auctioned. It is a dodge an its value is so low now! And of course we will not be able to pay a $15,000 deficiency or we would be able to pay the car payment.
Is our only option bankruptcy? If so, would it be better to do it before they come and get it? And since it is in my husbands name would it only be him that needs to or do both of us have to? We don’t want to get out of paying things we owe.
The whole situation is totally uncharacteristic for both of us but our income is $2,000 less that what it was 4 months ago and we have no options. I have two cars in my name so if it is taken then we will not be left without something to drive.
It is probably best to meet with a bankruptcy attorney now and get the ball rolling. It is not going to save the car but you can prepare for the big deficiency bill that will be heading your way.
I understand about the willingness to pay and wanting to honor your debts. I never suggest bankruptcy as an easy way for people to get out of their obligations. It just so happens that bankruptcy is the only legal consumer protection you have against creditors that will allow you to repay what you can afford or discharge the debt.
There is nothing that prevents anyone from repaying their creditors after bankruptcy to meet their convictions about their debts. You can do that also. But in your current situation you certainly don’t need continued collection activity and pressure from a situation that has slid beyond your ability to meet the minimum payments and obligations.
Your husband can file as an individual and as long as you don’t have any joint debts it will not impact you or your credit report.
So right now, find a local bankruptcy attorney you like and make an appointment to go in an ask all the questions you can. It might not be a fairly tale ending but it is the right thing to do in the situation.
Please update me on your progress by posting updates here in the comments section of your question. I’m very interested in how this works out for you.
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.
P.S. Be sure to read ‘The Secret of Surviving Through Difficult Economic Times. What I Learned On My Journey‘.