[BKFranks]

Seems I have no choice now with the amount of debt and the lack of work. Bank is saying they won't reaffirm my truck loan that I've been paying for the past 5 years. Not allowed to apply for any credit or a loan to obtain another one. Looks like I'm going to lose my only means for work even though I pay for it every month. Attorney is no help. All he tells me is that he doesn't control the banks policies, but I had no idea this would happen. I specifically asked the attorney before I signed anything what would happen with the truck loan if I didn't include it in the BK. He told me the bank would reaffirm the loan. Now the bank says otherwise and it looks like I'm screwed.

Anyone got any advice?

 

[TheBuildingFirm]

Sell the truck, pay off the note and buy something you can afford.

 

[rselectric1]

Forget the truck, what about your house, the business, etc.???

 

[Doubleoh7]

Do you have anything that can be sold to payoff the truck? Maybe you can let the truck go and sell something to purchase a cheap truck. A guy has to have transportation. I don't understand what reaffirm means in the banking industry. I feel for you, you are ceratinly not alone, but it still does not make it easier.

 

[AtlRemodeling]

Are you filing personally and the truck is in your company? or the reverse?

I am sure things are different state to state but if the vehicle is in your name and you are filing personally it should be included in the BK. If this was left out then normally you can file an amendment if the bankruptcy has not been discharged. If it has already been discharged then unfortunately there is not much you can do about the bank opting to not reaffirm.

I feel your pain as I was once there. Keep moving forward and it will all work out.

 

[TulsaRemodeler]

Seems I have no choice now with the amount of debt and the lack of work. Bank is saying they won't reaffirm my truck loan that I've been paying for the past 5 years. Not allowed to apply for any credit or a loan to obtain another one. Looks like I'm going to lose my only means for work even though I pay for it every month. Attorney is no help. All he tells me is that he doesn't control the banks policies, but I had no idea this would happen. I specifically asked the attorney before I signed anything what would happen with the truck loan if I didn't include it in the BK. He told me the bank would reaffirm the loan. Now the bank says otherwise and it looks like I'm screwed.

Anyone got any advice?

I havent filed for bankruptcy before. But I have taken some terrible beating. Get over the shame and move on. Circle the wagons and figure out how you are going to survive. One foot in front of the other.

 

[CookeCarpentry]

Bankruptcy should be your last resort.

Sell the truck, pay down as much debt as you can, borrow from family, friends....

Get the debt down, and get back to the drawing board and figure out how to survive the next few months...maybe a temporary position somewhere?

 

[freemason21]

sometimes you can negotiate and keep things if you file bk. other times you cant.

what i would do if i was you; have a friend or family member take over the loan of your truck if they have the credit to do it. you still keep making the payments but then when you go to file bk, they cant take away your truck because technically its not your truck anymore.

 

[freemason21]

if that doesnt make sense i'll explain again im very tired. hopefully that helps though.

 

[Joasis]

Seems I have no choice now with the amount of debt and the lack of work. Bank is saying they won't reaffirm my truck loan that I've been paying for the past 5 years. Not allowed to apply for any credit or a loan to obtain another one. Looks like I'm going to lose my only means for work even though I pay for it every month. Attorney is no help. All he tells me is that he doesn't control the banks policies, but I had no idea this would happen. I specifically asked the attorney before I signed anything what would happen with the truck loan if I didn't include it in the BK. He told me the bank would reaffirm the loan. Now the bank says otherwise and it looks like I'm screwed.

Anyone got any advice?

You must list all debts in a BK filing. Your attorney gave you bad advice. I don't know how the BK laws specifically address time before you can get credit again, but if your truck is worth more then the payoff, maybe you can seek a private lender to pay off the bank and you pay them for the truck.

Good luck, and it will get better.

 

[CharlesD]

sometimes you can negotiate and keep things if you file bk. other times you cant.

what i would do if i was you; have a friend or family member take over the loan of your truck if they have the credit to do it. you still keep making the payments but then when you go to file bk, they cant take away your truck because technically its not your truck anymore.

Putting something into someone else's name to avoid liquidation in a bankruptcy or any other kind of judgement against you is highly illegal and can get you into trouble with the law.
I think tools used in your trade is exempt in bankruptcy judgements.

It's hard to believe a bank would repossess a vehicle you're making on time payments on

 

[Framer53]

Putting something into someone else's name to avoid liquidation in a bankruptcy or any other kind of judgement against you is highly illegal and can get you into trouble with the law.
I think tools used in your trade is exempt in bankruptcy judgements.

It's hard to believe a bank would repossess a vehicle you're making on time payments on

Ask your attorney if the truck can be classified a tool. I can't re,member the amount of money that you can have in tools that are exempt, but the key question is the truck worth more than the payoff?:thumbsup:
If it is, this is why the bank doesn't want to reaffirm I do think that they actually have no choice if the BK judge rules for a reaffirmation.

Call the bar association and tell them your problem and ask for a reafferal to another BK attorney. You should be able to get a free or low cost opinion from another.

I have been there, trust me, keep looking up, things do get better. I f you would like some private thoughts PM me.

 

[scrapecc]

And the banks wonder why ppl flip out and destroy things they are about to lose. you want to keep the truck and pay for it. I have to say, I know a lot of ppl that would have just rode that thing hard and put it away wet. I even had a friend that lost his house, knocked down every wall in the basement he could. Filled it with 4 inches of sand and had a beach party. What do you think the bank would thing about your truck if you did something so creative to it also? Oh and that guy didn't get into any trouble, after all it was still his house when he did it.

 

[BamBamm5144]

You have to ask yourself ARE YOU SURE YOU NEED TO FILE BANKRUPTCY??

Remember, in these times credit card companies and other companies want to work something out. My parents somehow managed to rack up a 25000 credit card mostly due to medical bills (and a few cruises). It got to the point they could not afford it. They offered the credit card company 5 grand and they accepted. 5 grand is better than nothing. Do I think it is right to take on debt you cant repay? Of course not but there are situations where you need to.

You have to look over your personal budget. Car payment, insurances, groceries and all things like that. Do you eat out a lot? Eating out once a week with a family of four can cost you nearly 3 grand a year. Do you have two cars but really only need one? You said you have been paying it for 5 years. How long is the loan for? It should nearly be over so can you pay it outright?

Before you really think about bankruptcy, try to figure out a way to not make it happen. Modify your mortgage if you have to. There is always a way.

 

[BamBamm5144]

And the banks wonder why ppl flip out and destroy things they are about to lose. you want to keep the truck and pay for it. I have to say, I know a lot of ppl that would have just rode that thing hard and put it away wet. I even had a friend that lost his house, knocked down every wall in the basement he could. Filled it with 4 inches of sand and had a beach party. What do you think the bank would thing about your truck if you did something so creative to it also? Oh and that guy didn't get into any trouble, after all it was still his house when he did it.

Totally of topic but thats the sort of thing that pisses me right off. So because your friend purchases a home that he can not afford for whatever reason, he decides to ruin it when the bank wants it back. I mean after all, it is the banks house, they just let you live in it. It must not have been HIS house if the bank wanted it back when he couldnt make a payment. Think about it. He should go to jail.

I have a friend file bankruptcy recently only because of foolish spending habits. He now asks me for money in which I always say that it doesnt look like your good for it so I cant.

 

[BKFranks]

Thanks for all the replies. How do you guys stay busy, especially those of you in area that construction is just about dead? You must have a number of established contacts over a long period of time. I started as a carpenter back in 1992 and have never seen it as bad as this. I decided to get my own license in 2007 after I got laid off from a guy after working for him for 5 years. Since then it's been an steep uphill climb and I don't think I've gotten anywhere. I know a few contractors that have been in business since the 80's and even they are having a really hard time.

It's been tough for a lot of people here. I just went to a photographers house yesterday to go over some stuff and the guy cut back on everything. He said that this time of year is normally his bread and butter with the Christmas parties and whatnot, but this year with so many companies cutting back even he's hurting. Getting him to go ahead with the work is difficult as is most of the people I talk to.

 

[rselectric1]

Thanks for all the replies. How do you guys stay busy, especially those of you in area that construction is just about dead? You must have a number of established contacts over a long period of time. I started as a carpenter back in 1992 and have never seen it as bad as this. I decided to get my own license in 2007 after I got laid off from a guy after working for him for 5 years. Since then it's been an steep uphill climb and I don't think I've gotten anywhere. I know a few contractors that have been in business since the 80's and even they are having a really hard time.

It's been tough for a lot of people here. I just went to a photographers house yesterday to go over some stuff and the guy cut back on everything. He said that this time of year is normally his bread and butter with the Christmas parties and whatnot, but this year with so many companies cutting back even he's hurting. Getting him to go ahead with the work is difficult as is most of the people I talk to.

BK, I'm wondering if you need to consider traveling to other areas for work. You're not going to want to hear this, and I'm not trying to brag, but I have been slammed recently.

Maybe it's your local economy. There are some areas of Illinois that are just plain ole depressed and will probably stay that way for years to come.

Are you in an area where a real large employer has gone under? If so, it might be time to pull up stakes and think about relocating.

Just my $000,000,000.02

I feel for you and so do alot of your fellow posters. Maybe one of us will come up with an idea that will help you.

 

[NormW]

Hey Bk,

Im out here in New England, Its bad. Last week on my jobs, I met two guys who are in foreclosure. Everyone is hurting, even the customers.

Days are short. Economy is horrible. Holiday blues are coming early for a lot of people.

On my main job, I'm under contract. I know this sounds crazy, but Im considering approaching the owner, and negotiating my current contract down in his favor. I'm contracted for the framing, thinking of negotiating a deal in order to keep him from bidding out the remainder of the job. Its inside work for the winter... I have never/ever dreamed of negotiating my own price down, somehow I think it might be wise if I can get the remainder under contract.

I know in my area, a lot of people are buying up real estate that's getting forclosed on, or headed that way. My current customer, obtained the property Im on now this way. Property flipper? ... Maybe, He's not admitting it. Currently Im not being too picky, just trying to avoid the real bottom feeders. Sigh, since this job was a forclosure purchase, I guess I'm skimming fairly low.

Anyway, If things keep up, maybe these are the guys worth pursuing. Anyone who is in the position to be buying real estate, is doing well compared to the rest of the country.

Chin-up BK, everything passes in time. Trick is to still be sane, when it passes.

 

[Duck042]

Seems I have no choice now with the amount of debt and the lack of work. Bank is saying they won't reaffirm my truck loan that I've been paying for the past 5 years. Not allowed to apply for any credit or a loan to obtain another one. Looks like I'm going to lose my only means for work even though I pay for it every month. Attorney is no help. All he tells me is that he doesn't control the banks policies, but I had no idea this would happen. I specifically asked the attorney before I signed anything what would happen with the truck loan if I didn't include it in the BK. He told me the bank would reaffirm the loan. Now the bank says otherwise and it looks like I'm screwed.

Anyone got any advice?

I think I understand what's happening. You have OTHER debt (not your truck debt) that you're behind on and unable to pay. You want to declare bankruptcy to get out from all that other debt, but exclude the truck debt from the BK (reaffirmation) so you can keep working. You're up to date on the truck payments. First of all, very sorry to hear about your situation and your courage in sharing it on a public forum. Hopefully some of the stuff below will help you:


Three suggestions:

1. Are your other debts personallly guaranteed by you or only made to your corporation/LLC? If the latter, your corp or LLC can declare bankruptcy but you personally do not have to. Personal bankruptcy can be brutal on your credit, and might be a factor if they do a background check on you for a govt-funded job.

2. Try and figure out which type of BK you're going to declare. Congress changed the laws a couple years ago to make it harder to discharge debt through BK. Depending on the nature of your debts, student loans, IRS liens, etc. they may NOT be extinguished in BK, so check all that out before you consider leaping.

Here's a nice tutorial on BK (click on the other links to see the other chapters):
http://www.uscourts.gov/bankruptcycourts/bankruptcybasics/chapter7.html

The most extreme kind of BK, chapter 7, is call "liquidation" bankruptcy where you have to liquidate all your possessions except certain exemptions:
http://los-angeles-bankruptcy.net/california_bankruptcy_exemptions.htm

3. Whether you declare BK or not, do you have any equity in the truck? If so, then sell it and buy the best used truck you can get with the money.

 

[freemason21]

Putting something into someone else's name to avoid liquidation in a bankruptcy or any other kind of judgement against you is highly illegal and can get you into trouble with the law.
I think tools used in your trade is exempt in bankruptcy judgements.

It's hard to believe a bank would repossess a vehicle you're making on time payments on

i'd think if you transfer the title, payments, insurance, and registration over to someone else there's not much they can do because there is no connection to the truck.