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elkinsdg · Jan 20, 2008, 11:34 PM

I can't afford my auto payment anymore due to the lack of work and cutbacks. My payment of $650 is really taking its toll on me. I owe way more on the loan than what the truck is actually worth due to some stupid mistakes I made a few years back. But now I can no longer afford the payment and my wife and I are going to be having a baby soon. I don't know what to do. Please help.

simoneaugie · Jan 21, 2008, 02:18 AM

I do hope that some others have more helpful answers. To me, it sounds like you may want to consider bankruptcy. If you don't own a house it's different, perhaps a bit easier. If there are outstanding bills to creditors, not having to pay them would be a plus. A lawyer once told me that it is perfectly acceptable to do those things you would if you were not having financial trouble. She meant something like, before filing bankruptcy, buy a second vehicle (even new) for your wife. I had trouble with that idea, it seems wrong.

They will want an accounting of all you assets, including the truck. They then decide if they can sell those things quickly and make money. They usually can't. It is unlikely that they would take any of your vehicles if you need them to get to work and such.

A simple bankruptcy will cost you a little more than the truck payment. Your crippling bills are gone. After a certain amount of time, you could re-build your credit. You could then make some smart choices and be able to focus on your roles of husband, breadwinner and soon to be father.

On the other hand, you could get a second, or even a third job. Even working part-time flipping burgers will make your truck payment every month. This will pass, but it's not the time to be proud.

George_1950 · Jan 21, 2008, 08:12 PM

You and your wife need to take a close look at your budget. If your expenditures are higher than income, you must either increase your income or decrease your expenditures. It sounds as though you can't sell the truck to payoff the note; you might be able to borrow several thousand dollars and let a purchaser pay a lower price, when you and the purchaser payoff the loan together. You could return the truck to the lender; they will sell if for about half what it is worth and expect you to pay the difference. Or you could file bankruptcy, Chapter 7 or Chapter 13, whichever best meets your needs.

Fr_Chuck · Jan 21, 2008, 08:34 PM

First I am sorry but if you got a 650 dollar a month truck payment, you should have had someone talk to you seroiusly then.

But you have little choices, 1. sell the truck and borrow some money to pay off what the truck does not bring to what you owe.
2. see if you can find someone to talk over payments.
3. see if the lender will let you go out for a longer number of years to lower the payment to something you can afford.
4. let them repo the truck and work out a payment plan on the balance, which will still be a lot
5. get a second job that will helpyou make the payment

There is not a good chocie that I can think of