I know how you feel. I myself considered filing for bankruptcy(sp) and when I spoke with a lawyer he said that if i wanted to keep my vehicles i could continue to pay for them and they would stay in my posession. All my other debt would be gone but what i decided to continue paying for.

 

You still owe the money if the car is repo'd....

Just sell em. You'll take a loss and will still have to make some payments to pay the difference... but selling is better than getting repo'd.

 

if you let the cars get repo'ed your credit is [censored] for life..

just sell them

 

don't get me started.

 

if you let the cars get repo'ed your credit is [censored] for life..

just sell them

not for LIFE, but for 5-7 years, which is still a hella long time.

 

it's not that easy when on 1 car you have rolled neg. equity of 2 cars and the other has neg equity of 3 past cars totalling about 7500 neg.

 

Get a second on the house, pay off the cars and have one payment to make instead of three.

Then sell them if you have to, or trade down, if that possible, don't know what kind of car you drive.

 

Just do what I did...rob a bank.

Honestly though? If you haven't already, I also say take out a second on the house if you aren't renting.

 

Do yourself a favor,find a bankruptcy atty.Besides eliminating most unsecured debt,there is a way to petition the court so that your vehicle(s) can be financed FOR THEIR FAIR MARKET VALUE.If you say that you have @7500 negative thats a hell of alot that can be eliminated.At least check into it before just letting them repo cars that you will STILL OWE money on any "deficiency balance".You should hurry though,there are new laws that take effect in October that will basically turn the courts into collection agencies.You might want to check out www.legalhelpers.com lotsa info

 

As smedly said,
The BK laws have changed, you can't wipe things away like this anymore. If you have the means to pay, you're s.o.l, that means garnishment of wages. If you have them voluntarily repo them, they'll screw your credit, which could hurt you if an emergency comes up and you need to finance something for the baby, then they'll sell it at auction and force you to pay the difference in full all at once, you will NOT get to finance it.

Your best bet is to eat beans and rice for the forseeable future, take a job delivering pizzas when you're off from your other job and pay this debt down as fast as you can.

You say you have two cars with a combined neg equity of 7500? YOu might be able to turn them both in on a vehicle with a huge rebate, maybe take some of the cash and apply the rest to the new one, take that cash and buy a cheaper second car, use it fro a-to-b work and cruise the new one. You might be looking at a $500 car payment but you'll be saving 200 per month.....

 

Do not take a second mortage out on your house if you can't meet your current debt load.

Credit card debt is totally unsecured they can't take anything away from you for not paying. And if you do your research, you'll find that you don't have to pay this and in a few years, they can't come after you for it, but you need to learn what your state says about it and the rules to follow so they can't come after you.

You don't want to loose your house if you can't pay for your car or your credit cards.

I would suggest going to the library and checking out Suze Orman's Young Broke and Fabulous before you decide to go the bankruptcy route, especially if you have children to care for. Protect your credit.

At the very least go to a non profit debt agency and see if they can work something better out for you than bankrupcy.

 

As smedly said,
The BK laws have changed, you can't wipe things away like this anymore. If you have the means to pay, you're s.o.l, that means garnishment of wages. If you have them voluntarily repo them, they'll screw your credit, which could hurt you if an emergency comes up and you need to finance something for the baby, then they'll sell it at auction and force you to pay the difference in full all at once, you will NOT get to finance it.

Your best bet is to eat beans and rice for the forseeable future, take a job delivering pizzas when you're off from your other job and pay this debt down as fast as you can.

You say you have two cars with a combined neg equity of 7500? YOu might be able to turn them both in on a vehicle with a huge rebate, maybe take some of the cash and apply the rest to the new one, take that cash and buy a cheaper second car, use it fro a-to-b work and cruise the new one. You might be looking at a $500 car payment but you'll be saving 200 per month.....

Yup, my mom's all pissed because the laws changed and now she can't just have all her bad money choices wiped away easily.

 

OH NO, please do not BK or get a repo. I deal with peoples credit everyday, and I would not want to see you do either.

It will screw you. Dont let a lawyer tell you differently. They only want you to bankrupt because they make money off of you. It would be the dumbest thing you can do. DO NOT LET PEOPLE TELL YOU OTHERWISE.

Repos, are not great either. Most people that have had a repo in the past few yrs, even with redeeming credit, cant qualify for even the cheapest of items.

Good luck with everything.

 

Your best bet is to eat beans and rice for the forseeable future, take a job delivering pizzas when you're off from your other job and pay this debt down as fast as you can.

That's exactly what I'm doing. It sucks, but it beats BK. Except We are battling medical bills, not car payments. I pay the people who can actually take stuff away from me. The lawyers can't do much right now except garnish and the Focus will be mine in a few months, so I can manage.

 

Yeah, I'm going thru the same thing, just not to the same extent I'd say. I got laid off and its been rough finding a decent paying job. We just had a little girl last month and now are getting all the medical bills. I'm lucky that my car is paid off and we only owe her car note, but our lease is up at our apartment this month and in order to renew we have to pay the deposit, which went up. Plus the rent goes up $179/month!! I'm scared, I won't lie, I'm not sure what we're going to do. I have an interview today, its better than nothing but even if I can't start until Monday, that means I don't get paid until the end of the month. Crunch time!

 

There's no shame in being responsible. Sometimes we don't think of the what-ifs. Not a lot of people plan on the future in this country, I'm no different aside from the fact that I HAVE done both, a BK and a repo, I know what it's like and though my credit is back in the 700 range, I'm more frightened than ever of credit and what it can do to you.

Let me explain it....Forget the minor things like court and the laywers. You'll be forcded to lay your entire financial life on the line, they'll look at everything, how much you make, how much you actually own, everything, and it's going to be their's for the taking. Got a new car stereo? They can takeit if they want to. If you make enough to pay some of these bills, expect a third or more to go to creditors... Then, right after your discharge, you'll be flooded with loan offers, all rediculous interest ( I still get these and it's been 8 years now ) and yes, you will be able to buy a car right after. How? You can't file for a BK for the next 8 years after the new laws, meaning you are THEIRS. You're less of a credit risk than someone with even good credit because you can't get out of it.

BY maintaining your credit, you have the advantage of choosing. It may take time, but do your best to maintain and it'll pay off in the end.

Hold a garage sale, let go of any expensive toys you don't need, whetever it takes, pay the debt down as fast as yo can to either get out of it by selling it or paying it off.

Then, like me, you'll get prime rate mortgages, credit card rates and car loans that you can manage and will allow you to actually live yourl ife and plan for your future.

I'm an example of someone who did it and lived, but I'd NEVER suggest anyone do it unless there was simply no other way. I'd go to family for help first, it's never easy to do, but it's better to swallow your pride than it is to take it up the tailpipe for years and years....

 

Instead of a repo, check into surrendering the car to the finance company. It should have about the same affect on your credit, but be a litte easier. Only issue would have to be the being upside down on the loan they may not go for it.

 

Do not "give up the car" or have them reposed.

By the way both are the same thing. One way they take the car in the middle of the night with a tow truck, the other way is you drive it in and give it to them.

Either way you are in trouble with your credit and then you will end up with a 24% or so interest rate.

What you need to do to try and lower your payments is either find something with a huge rebate and try and wipe out some negative equity or sell your cars pay down the debt and try and payoff the difference.

Bankruptcy and repossesion sound easy but for the next 7 years you will drive every POS there is because you will not get financing on a new car again for that amount of time without paying some outrageous interest rate.

Oh and by the way you think car shopping sucks now wait until you become a bottom feeder with a 480 beacon and everything you try to buy is at sticker price and 24% interest and some guy is beating you into thinking they are doing you a favor by getting you any kind of financing. 2nd chance finance guys are ruthless.

 

i have no toys to sell , and a second job will not make enuff money to cover . so i guess basically i am up the creek

 

i have no toys to sell , and a second job will not make enuff money to cover . so i guess basically i am up the creek

so you're just going to give up? You have a woman and a child, soon to be two children (if I remember right) and you're just going to shrug it off with that?
so WHAT if a second job won't make enough money to cover it. Do what you have to do to take care of your family! Donate plasma (you get paid) sell your spermies whatever it takes. Anything extra coming in is better than nothing, right?
I wish you luck man, but please don't give up with that. You think it's bad now, wait until you're paying on two cars that you don't even have anymore.

edit: do you own your own house? Do you have enough equity in it to cover what you're upside down with? Since you're obviously willing to give up the cars, sell them and take out a smaller loan to cover the difference. Even an unsecured personal loan at a ridiculous interest rate is going to be a LOT less than your 700 a month payment right now.
Some people here said not to touch your house, but what is more important to you right now? Making sure your credit stays intact and taking out a home equity loan or just saying to hell with it all and letting everything financialy go down the drain? IMO, the first would be the better option, especialy having children to support.
PUT YOURSELF ON A STRICT BUDGET if you do this! DON'T get yourself further into debt by suddenly not having $700 worth of cars to pay for each month and think you can have something else now.
As Emulous has said, check out Suze Orman's book. She has some great financial advice to give.
To end this, sometimes we all do stupid things and make stupid decisions. This doesn't sound like the right time to make another one though for you.

 

Sell your cars, buy a bike or bus pass? Take out a home equity loan on your house and pay off both your car loans with that. Sure you'll be paying more interest IF you keep the loan full term, but your payment will drop to next to nothing, plus the interest is tax deductable. Or go out and buy a 40k SUV that has 12k in rebates or something like that, but your car payment then would still be rediculous.

Good luck man.

 

i'm not just giving up . i'm still doing research and gathering opinions

 

I think you need to contact Clark Howard. He's a good finance guru who can help you out totally. I listen to him every day at work just to get some ideas on what to do in certain situations.

Check him out here:
www.clarkhoward.com

dentless dave!!

sorry...link fixed.....

 

thanks for the input i'm thinking i might go the home equity route . i've gotta talk to autox zts and read emulous 's book

 

Yes, please read the section on taking out a home equity loan in the book. Makes a lot of practical sense what she says about not doing it in situation like yours.

Good luck, I hope everything works out for the best for you.