I see a lot of people trying to keep their car with outrageous monthly payments and I often wonder if it’s really worth it. Everyone knows that when you drive a NEW car off the lot you are pretty much paying more than it’s worth right away. So when it’s time to file bankruptcy, is it really worth it to keep your car?

Well, what the heck are you going to do right? You can’t live without a car! Fortunately, or unfortunately, the automobile market is seeing exactly what the housing market is right now, a lot of defaults, repossessions and bankruptcy filings. That means there are a lot of newer cars on the market at used auto dealers for a fraction of your current monthly payments.

Chances are, if you do some research on available vehicles in your area you can find a car that is just as nice, with lower monthly payments. Filing bankruptcy is supposed to relieve you of massive financial obligations, so giving up your car may just be worth it.

Demos.org’s latest report on the economic status of the middle class is downright scary. As a member of the middle class who’s partner lost his job due to his company relocating across the country, I can tell you people everywhere are literally hanging on by a thread.

My partner was unemployed for 9 months, and though we made it through, according to Demos, we are among only 13 percent of middle-class families that have the assets available to cover living expenses when regular income ceases for 9 months. Seventy-nine percent of families can barely cover the majority of expenses for 3 months, and another 9 percent are “borderline.”

According to Demos, “Twenty-one percent of middle-class families have less than $100 per week ($5,000 per year) remaining after meeting essential living expenses. These families are living from paycheck to paycheck with very little margin of security.” That means any expense like a broken water heater, fender bender, or a trip to the emergency room could spell disaster.

I guess it’s no wonder that after the initial decline in bankruptcy filings after BAPCPA, filings are once again rising. The bankruptcy statistics released by the Administrative Office of the Courts show a total of 132,008 bankruptcy filings in September of 2007, compared to 96,442 bankruptcy filings in September of 2006. Each quarter of 2007 averaged 40,000 more bankruptcy filings compared to 2006.