Keep car payment/Help my credit score

[JustDo]

Hello All,
My car is falling apart and I drive 400 miles a week and need a car. I am planning on purchasing a $18,000 new car with a 5 year loan.

I am almost certainly going to file chapter 7 in the next few months. I am still holding out a glimmer of hope that I won't.

My question is....Since I will keeping the car and making payments on the car...This is going to help rebuild my credit score after BK won't it, won't it??
Sounds obvious but I want to make sure.

Thanks

[lrprn]

First of all, before you do anything, go meet with 3-4 bankruptcy lawyers in your area. Most give free or low-cost initial consultations. Make certain that your state bankruptcy exemptions will cover a new car purchased recently before filing.

Also there's a good chance your auto lender may object to the recent purchase before filing Ch 7 unless you reaffirm the loan. That will increase the chances your lender will report the payments to the credit agencies, but there's no guarantee. Be sure you make reporting to all three credit agencies a part of your reaffirmation agreement.

If you reaffirm the loan and then run into financial problems after your bankrutpcy is discharged, you will owe the entire amount of the loan.

These are not decisions to make without sound legal advice. Go talk with a few bankruptcy lawyers in your area to make sure you are making sound decisions that won't get you into a heap of legal trouble after you file.

[JustDo]

Thank you