When is it appropriate to file bankruptcy?

My husband is 21, unfortunately he has made some horrible decisions in his life regarding money. He is now considered ‘high risk’ by EVERY loan company you can think of, including the NO CREDIT BAD CREDIT NO PROBLEM people, lol. Now his (not mine, my name is not on it, and please remember, I just recently became his wife!) car is up for repossession. He leaves for basic in January, and that will solve many of our money problems. However, we NEED this car, myself and my daughter, while he is in basic and up until that time. How long will it take them to come get it? And the real question I am asking is–with his credit being this horrible, and owing all this money that’s so terribly behind, should he just file bankruptcy?? I know it will freeze the repo and we can at least keep the car. He is only 21, I know that is young, but his credit report is four pages long–of crap he still owes. Would it be better to start over even with a bankruptcy? (my credit is good.)
That is–keep the car for an undetermined amount of time. His mother (imagine that, the apple doesn’t fall far from the tree) filed bankruptcy earlier this year and drove her truck for free for over six months.

Technorati Tags: amount of time, apple, bad credit, bankruptcy, credit report, decisions, high risk, loan company, money problems, repo, repossession, six months

Posted March 7th, 2010 in When To File Bankruptcy. Tagged: amount of time, apple, bad credit, bankruptcy, credit report, decisions, high risk, loan company, money problems, repo, repossession, six months.

3 comments:

mister ed:
yesterday!!!!
March 7th, 2010 at 9:25 am
Davyd S:
How much is he in debt? If it is just the car, don’t go into bankruptcy, you are much better off solving the problem.
Bankruptcy will not let you keep the car. Maybe it will stall the inevitable, but it will have to go back if you owe on it. Give the car back and schedule payments to get up to date with that company. Buy a car in YOUR name, as cheaply as possible, and make the payments. Star handling the finances for both of you. Give him an allowance and stick to it. If you don’t have a job, get one and help catch up on the debt. Start working his credit back with a credit card with low limits (you can get them with a few hundred dollars limit).
March 7th, 2010 at 9:25 am
Lesley:
If you want to keep the car, the chapter 7 bankruptcy is only a short term fix, the lender can lift the stay within weeks and reposses the car if you state you have no intention of reaffirming (and they won’t let you reaffirm if you’re not current anyway). I’d be shocked if you got to keep the car 6 months as a chapter 7 doesn’t even last 6 months.
March 7th, 2010 at 9:25 am