Wife and I met with Attorney on Friday for initial consultation. Looks like we will be filing Ch. 7 soon. Should be an easy "no-asset" case. We live in North Carolina.
Here is the deal on our cars:
2002 Olds Alero w/ 65k miles.... NADA value is $6,950 (retail). We own it free and clear. Paid off Dec. 06. Attorney said we could protect it by stacking our $10k "Wildcard" on top of std. $3000 vehicle alotment. We would like to keep it because we own it and it is good on gas.
On to my real issue:
2002 Dodge Dakota 4x4 w/ 106k miles....NADA value is $12,800 (retail) and $10,275 (trade). I owe $8300 and it should be paid off April 2010.
I have never been late on this payment and have been paying since Jan 2006.
As you can imagine, this thing is a gas hog and I really want to trade it for a more fuel economical car. My fuel bill each month is $300+.
I have picked one out and it is selling for $9,900.
As far as my BK is concerned, I feel that I have 3 options:
A) Trade it now and then re-affirm the debt on the new car after I file
B) Wait, and surrender the truck during BK, then attempt to buy another car after
C) Keep the truck and re-affirm the debt
Complicating matters on option A, my credit score is 511 (Experian). I know I will probably get killed on an interest rate, but as far as I am concerned, as long as my payment is *less* I will be happy. I figure that after a year or two I could re-finannce the car or trade it to get into a better deal.
I know this is not an easy situation, but I really want to get rid of this truck, but NEED a vehicle to get to work. As does my wife, she NEEDS a vehicle to get to work.
Please help... Thanks!!
Here is the deal on our cars:
2002 Olds Alero w/ 65k miles.... NADA value is $6,950 (retail). We own it free and clear. Paid off Dec. 06. Attorney said we could protect it by stacking our $10k "Wildcard" on top of std. $3000 vehicle alotment. We would like to keep it because we own it and it is good on gas.
On to my real issue:
2002 Dodge Dakota 4x4 w/ 106k miles....NADA value is $12,800 (retail) and $10,275 (trade). I owe $8300 and it should be paid off April 2010.
I have never been late on this payment and have been paying since Jan 2006.
As you can imagine, this thing is a gas hog and I really want to trade it for a more fuel economical car. My fuel bill each month is $300+.
I have picked one out and it is selling for $9,900.
As far as my BK is concerned, I feel that I have 3 options:
A) Trade it now and then re-affirm the debt on the new car after I file
B) Wait, and surrender the truck during BK, then attempt to buy another car after
C) Keep the truck and re-affirm the debt
Complicating matters on option A, my credit score is 511 (Experian). I know I will probably get killed on an interest rate, but as far as I am concerned, as long as my payment is *less* I will be happy. I figure that after a year or two I could re-finannce the car or trade it to get into a better deal.
I know this is not an easy situation, but I really want to get rid of this truck, but NEED a vehicle to get to work. As does my wife, she NEEDS a vehicle to get to work.
Please help... Thanks!!
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