[af_vet_1981]

I've got one case where my client just got divorced. Her ex wanted the new pickup truck so she let him have it with the debt. She then purchased her a used car to replace the truck. Well, two months later, ex-hubby files for bankruptcy since he can't make the payments, and decides to surrender the truck and discharge the debt thereon. I have been in negotiations with the creditor, a large financial institution, and guess what, they won't work with my client at all. She can make the payments or they are suing her. And she can't make 2 car payments. She has cut living expenses to the bone and can't cut anymore, and she can't make the payment. They won't even take a settlement and compromise. The want the full balance or nothing. And since the ex didn't make payments for 2-3 months, then if she were to want to keep the truck, and make 2 car payments (which she can't) she will have to pay over $1,000.00 that she doesn't have to bring it current. My point...many creditors will not work with you. And idle threats about bankruptcy won't matter. I have threatened that to client's creditor, and they said..."go ahead".

Why doesn't your client simply sell one of the vehicles ? I find it implausible that she has enough negative equity in both vehicles to plunge her into bankruptcy.

[yukong]

well, trying to sell the one the ex dumped on her...but...when he got it, his credit was bad enough that he got a horrible interest rate, thus the balance owed is a fair amount more than the retail price, and considerably more than the wholesale or loan value. Same on the used car she recently bought. However, on the car she bought after the divorce, she has a much lower payment because it is several years older than the 2003 Dodge Ram that he dumped on her. So...she is trying to sell the Dodge, but will still be left with a fair balance due.

My whole point was that the creditor will not work with her at all. Pay it all, or we are suing and repossessing the Dodge. And if she can't sell it for the entire balance due, plus their attorney fees in the exhusband's bankruptcy, they won't release the lien and title. So, the odds of selling it are remote.