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Bankruptcy Question

Credit card debt: $5,100
Medical Bills: $700
Student Loan: $5,000
Truck Loan: $13,000

My question is: If I file bankruptcy, will I be able to keep my car? And do I have enough debt to file bankruptcy?

I don't know much about bankruptcy. So, any and all information is greatly appreciated.

My annual income is: $37 k

Answer Question

Asked by Anonymous at 2:05 PM on Feb. 14, 2010 in Money & Work

Answers (7)
  • I don't know about this stuff first hand or anything, but I do believe that yes you would keep your vehicle depending on what you file under and your family size. A friend of mine just claimed bankruptcy and they are a family of four and they were able to keep one vehicle. But they had much less debt than you and they freaking make $80,000 a yr. Stupid of them IMO. Have you thought about maybe getting financial counseling?

    Answer by Anonymous at 2:48 PM on Feb. 14, 2010

  • U would still have to pay your student loan back.

    Answer by officerdouglas at 4:23 PM on Feb. 14, 2010

  • Alot of those answers depend on where you live and what kind of bankruptcy you file. Talk to a lawyer because many times you still have to repay the debts you owe. If that is the case you maybe better off paying them.

    Answer by CorrinaWithrow at 4:47 PM on Feb. 14, 2010

  • Well you said "truck loan" is that your only vehicle? You then said "will I be able to keep my car" making me think that no you have two vehicles. If the "truck loan" is on the bankruptcy you will have to give the vehicle back....or keep paying on the loan. Generally you are allowed to keep one vehicle with a bankruptcy, it would be the one you don't owe on. Also student loans can't be put on a bankruptcy, you are required to pay them no matter what!

    Answer by Mom2Jack04 at 9:18 PM on Feb. 14, 2010

  • Yes you would still be able to keep your car loan you would just have to sign a paper with your loan place saying you are not going to file with them.... but really if you are going to keep your load for your car then there really is no since in filing... I wouldn't screw my credit score up just for 10,000 .. is there anyway you can get a 2nd job for a while just to pay them down or go with an consolidation load place and get it all in 1 payment? I would try and find a way around it if you can.. My husband and I went through it 2 years ago and it wasn't fun and it took a long time over 8 or 9 months to go through.... then after you file it is very hard to get approved for anything... you have to wait at least 2 years b4 a bank will even look at you and most of the time it would be longer.. That is what were are dealing with now... it sucks, try a diff route b4 you go with this one.. gl

    Answer by Anonymous at 9:23 PM on Feb. 14, 2010

  • STOP
    IT DEPENDS ON WHICH STATE YOU LIVE IN. Some states will let you keep the car, some won't. It also depends on whether or not you are filing chapter 7 or chapter 10.

    ALL OF THAT ASIDE if your student loans are Federal, you HAVE to pay them back and they will not be waived with bankruptcy.
    WAIT THOUGH-- there is more. You'll have a to get a lawyer and prove your case. That alone can cost up to $10,000.

    Sell your truck. Take a loan out for the difference. Get a beater car if you need it. Get on a written budget, cut up your credit cards and STOP accumulating more debt.

    You've got the income to clean the mess up. And bankruptcy really isn't going to help you much- if at all.

    Check out or the Dave Ramsey group on Cafemom for more information. You can get through this, but not without some sacrifices.

    Answer by Anonymous at 10:21 PM on Feb. 14, 2010

  • You will be able to keep your truck if you sign a re-affirmation with the lender. A re-affirmation means that you intend to keep the vehicle and will continue to pay the loan. Make this decision before you file because if you sign a re-affirmation and then down the road decide to let the lender reposses the truck, you'll be on the hook for any amount of money that you're "upside down"....meaning if it's only worth $10,000 and you owe $13,000, you'll still them the $3,000.00.

    As far as to whether or not you can file bankruptcy, an attorney will do a means test to see if you qualify. They take into account all of your monthly expenses versus your income.

    And to "anon" above me, filing bankruptcy does not cost anywhere near $10,000!! We filed late last year and it cost us $1300.00. $300 was for court costs and the atty charged a flat fee of $1,000.00. This is pretty much the going rate.

    Answer by Anonymous at 3:48 PM on Feb. 23, 2010

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