Is Bankruptcy my only choice?

[csfields]

What is the name of your state? TX

We own next to nothing. We rent our home, we have no active credit cards and haven't had any in years. We do have a very minimal amount of old debt to credit cards, but it has been five to six maybe seven years since. We might owe a thousand dollars in debt to those old cards. We have a financed vehicle, however. It is our only car and we are in a desperate situation. We are two days short of being three months behind on payment. They will come and repossess if we can't come up with a thousand dollars in a couple of days. I thought that maybe, since it is so critical that we keep our car, that we should file bankruptcy and avoid repossesion. Is that even sensible? Would they let us keep the car and would it wipe out the money we owe on it?

 

[toughluck73]

“Would they let us keep the car and would it wipe out the money we owe on it?”

No, they would never let you do that. The car seems to have been put up for collateral, so they are entitled to take it if you can’t make the payments. Now if you file Ch. 7, the car will still be repossessed and all that Ch 7 could do for you is eliminate all your unsecured debt, such as the old credit card balances. If you file Ch 13 (you need some steady income), then you could work a repayment plan, but that would not let you discharge the debt and let you have the car for nothing (you would still have to pay the balance).