What can they take? Time to file?

[newt_k]

What is the name of your state? AZ

I suspect I will be served by a debt collector for some credit card debt. I don't have the money to pay.

My only asset is a car worth $8k. I have no job at the moment and I am in school full time until December. My goal is to keep the car and not start a new career with my wages garnished.

Do I file for BK before or after the judgment? Can they take my car? Is it important to file before I graduate and get a job if I want the debt discharged by the BK?

Trying to find the best way to start fresh here. Thanks for the help.

NK

 

[Who's Liable?]

Talk to a BK lawyer, most consultations are free.

DON"T go to Phillips & Associates, Phillips was barred from practicing recently.

You can keep the car, you will need to reaffirm it however. This means you agree to continue paying the monthly amount due after the BK, you do not get to keep the car for free.

 

[newt_k]

Talk to a BK lawyer, most consultations are free.

DON"T go to Phillips & Associates, Phillips was barred from practicing recently.

You can keep the car, you will need to reaffirm it however. This means you agree to continue paying the monthly amount due after the BK, you do not get to keep the car for free.

Thanks. To clarify, I own the car and hold the title. So, no payments due.

 

[racer72]

Your only problem might be the value of the car. Don't think retail value, think fair market value. FMV is generally 20 to 40% of what most folks think their vehicle is worth.

One car with a fair market value not to exceed $5,000. If debtor is physically disabled, the fair market value of the
motor vehicle shall not exceed $10,000.

 

[bigun]

Racer correctly answered your question about your car.
I'd just add that you need to lok at the totality of your situation to decide if bk is viable.
How much debt are you seeking to discharge?

 

[newt_k]

Your only problem might be the value of the car. Don't think retail value, think fair market value. FMV is generally 20 to 40% of what most folks think their vehicle is worth.

Good point. Edmund's fair market value tool says it's only worth $5,100.

 

[newt_k]

Racer correctly answered your question about your car.
I'd just add that you need to lok at the totality of your situation to decide if bk is viable.
How much debt are you seeking to discharge?

At least $35k.

$35k on two credit cards. It is also possible that I will be on the hook for a HELOC my ex has defaulted on. That would add another $100k.

I have a (worthless) divorce settlement saying the ex takes responsibility for one of the credit cards and all of the house. There was no equity in the house to refi, so I couldn't get off the mortgages. And she had no credit to transfer the card to, so it was agreed that she make the payments and transfer the balance when possible. I think you know what happened next.