As a new Christian, I am facing what I consider to be a moral delima. I was in an accident in 2001. I have held off the creditors as long as I feel possible. I had no income for over 2 years. Most of the debt that I have is medical. I also have some credit card debt. I the beginning, it was managable but the interest and penalties make this debt as large as my medical bills.
I also have a auto loan for a vehicle which I no longer need. It is though a credit union and I feel I should reafirm it. The problem is the payment and insurance are expenses which I do not need and can not afford. I owe more on the car than what it is worth because I had a credit card debt and it was added to the car loan by the credit union.
I am on disability and my income can not pay my expenses. I am very troubled by this. Does anyone have any words to share concerning my moral delima?

Hmm...Lionel, the lawyer, may have some very good advice soon, but my two cents is: Bankruptcy. Good ol' Chapter 7.

Some guy on the street handed me a flyer once saying that Jesus can get you out of debt (unfortunately, I threw it out)... perhaps he can help you. :D

They just made the bankrupcy laws tougher, but it does sound like you are bankrupt. Confirming that legally is just a formality it sounds. If you are bankrupt then formalizing it doesn't sound like a moral dilema, it's just a reality.

If your problems are as you've explained medical and disabled then there should be no shame in claiming a chapter 7. If you went out and racked up a bunch of "toys" just for the heck of it and now don't want to pay for them, this would be wrong. Drew also made a good point about the laws being tougher, but if you are honestly in a bind then you should'nt have a problem. Being a new Christian old Christian or a purple people eater doesn't mean squat.

Was their no recourse on the "accident?"

Originally posted by mad dog
If you went out and racked up a bunch of "toys" just for the heck of it and now don't want to pay for them, this would be wrong.

That pretty much prevented me going chapter 7 with 15k of debt. :) Gotta love the toys though.

Definitely go see a bankruptcy lawyer. They can at least let you know if you qualify. You could always go talk to the credit union. Being a smaller institution, you probably have a better chance of finding someone to talk to with actual power. You could offer to sell the car, pay down your loan with the procedes, and in return have them refinance your loan to reduce the payments. They'd much rather work with you than have you go belly up and lose all of their money.

Sue the pants off the person who crashed into you, maybe you'll get on Judge Judy :D

What does being a christian have to do with claiming bankruptcy?

If you have done your best to pay your debts and didn't run up your debts with toys then you have done nothing wrong.

If your side of the street is clean, there is no shame in filing bankruptcy. But if it isn't, then you need to look to yourself for the answers.

FYI - The first thing I would do is talk to a bankruptcy lawyer, then put an ad in the paper for the car and get as much as you can for it.

Good luck.

[QUOTE]Originally posted by Echo2
FYI - The first thing I would do is talk to a bankruptcy lawyer, then put an ad in the paper for the car and get as much as you can for it.
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Can't sell the car without a title.
Can not get a title without lein release from the financial institution, after paying off the loan totally.
Already said that the car is not worth what is owed on it. Could leave an out-of-pocket large amount for creditor to come up with to clear title.

I had a terrible day today , tomorrow can't help but be better.

1. I had an appointment with my attorney where I signed the papers to begin the bankruptcy procedings.
2. I meet with the loan manager at my credit union and told her of my decision to turn my car back over to there institution.
3. I met with a representative from the IRS

My day in court will be near the end of October.

Thank you to those who offered suggestions.

Good luck, iwrite.