Trying to decide what to do (File bankruptcy or not)

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WaterTorture

Member
Sep 15, 2003
42
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My wife and I have got quite a bit of debt and I dont quite know what to do.

We can't get anyone to lower our outrageous interest rates and we bought a 14x70 trailer to live in 2 years ago and it's cost is just eating us. 30 year note on a 28k trailer :(

So, we arent in a good position to pay off bills or get rid of the trailer (which is creating most of the burden)

I thought if we filed Chapter 7 and protected our 2 cars and let everything else go, we would be able to recover faster than trying to pay off that trailer and everything else.

It's not that I want to file Chapter 7, but I really dont see any other options. My credit is going to be screwed for a while either way and I just want to recover :(

I wish I wouldve never gotten that trailer, I never knew how much of a money trap they are.

Any suggestions?
 
StageLeft

StageLeft

No Lifer
Sep 29, 2000
70,150
5
0
You need to talk to a professional about it, like any one of those credit assistance groups. You can also personally call your lenders and tell them that you're considering filing for bankruptcy and that their ability to lower your interest rates would greatly decrease the chances of that happening. It's really a game of bluff with them I think because if they say "screw you the rate stays hi!" and you file, they lose.

Have you maximized income and minimized spending? Most people who think they have to file for bankruptcy have not made the tough decisions needed to avoid it. Ie: No more eating out, going to movies, renting movies, buying computer upgrades, etc. etc.
 
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WaterTorture

Member
Sep 15, 2003
42
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Thanks for the advice..

Yeah, we don't do anything but sit around and watch 4,6, and 10. We don't have cable or anything and we dont eat out really at all unless its for a family get together.

My home PC is still a 366 Celeron O/C to 550. I'm poor :(

I really just want to get rid of that stupid trailer, $400 a month for it +$260 lot rent is kinda crazy. Plus, that $400 a month is probably just paying toward interest and I'm gaining no equity.

$660 is a modest house payment around here.
 
StageLeft

StageLeft

No Lifer
Sep 29, 2000
70,150
5
0
Originally posted by: WaterTorture
Thanks for the advice..

Yeah, we don't do anything but sit around and watch 4,6, and 10. We don't have cable or anything and we dont eat out really at all unless its for a family get together.

My home PC is still a 366 Celeron O/C to 550. I'm poor :(

I really just want to get rid of that stupid trailer, $400 a month for it +$260 lot rent is kinda crazy. Plus, that $400 a month is probably just paying toward interest and I'm gaining no equity.

$660 is a modest house payment around here.
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That is freaking insane for a $28k trailer. $660, if you have no PMI, will get you a $100k house.
 
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WaterTorture

Member
Sep 15, 2003
42
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Originally posted by: Budmantom
Is the 14x70 trailer your house?
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Well, I wouldnt call it a house. But, it's where I sleep :(


Originally posted by: Skoorb
That is freaking insane for a $28k trailer. $660, if you have no PMI, will get you a $100k house.
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Yep, we bought it thinking it was better than living in a apartment :( We were wrong...

Just being dumb kids though, she was 19 and I was 20 and the only thing we knew was that we didnt want to live at our parent's house.
 
Budmantom

Budmantom

Lifer
Aug 17, 2002
13,103
1
81
Buying a Manufactured home is not be best investment(for most) but even if you had a good interest rate you would only save $200 per month.
 
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WaterTorture

Member
Sep 15, 2003
42
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$200 is a lot of money to me, that little bit of money a month could relieve so much stress and give me quite a bit more fun in my life :(
 
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ragazzo

Golden Member
Jan 9, 2002
1,759
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try the bluff game first and if that doesn't work, do talk to a professional because once you file, you're gonna buy A LOT just to stop the process.

wish you two luck.



 
C

conjur

No Lifer
Jun 7, 2001
58,686
3
0

You can call your creditors and tell them you are going to file. Then you offer them ~50% of your debt upfront.
Tell them it's either 50%, or nothing.

Beyond that, speak to a lawyer. There is a whole process you have to go through.
First and foremost if you are serious about filing, is to stop making payments on all debt immediatly.
It must appear on paper that you cannot afford your debts.
 
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WaterTorture

Member
Sep 15, 2003
42
0
0
Originally posted by: ragazzo
try the bluff game first and if that doesn't work, do talk to a professional because once you file, you're gonna buy A LOT just to stop the process.

wish you two luck.
Click to expand...

What do you mean by "you're gonna buy A LOT just to stop the process"?

Like buy a lot to reestablish credit?


Oh, and thanks for all the advice again everyone. Great stuff.



Not that it really matters at this point in time, but saying I offer a creditor 50% of my debt and they accept, how does that look on my credit report? That sounds like a better deal than bankruptcy.

Also, would anyone have any good ideas for unloading the trailor? figuring I owe 28k on it probably since very little has been paid towards the principal and its value probably depriciated to 12k or so :(
 
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