What do I do...

[brkntaxachusett]

I don't want to be left "car-less". I'm so confused now after reading thru these posts. I just spoke with a lawyer today and plan on filing BK next month. I have about $17k in cc debt, $4k left on a personal loan and $18k on an auto loan. I'm almost 30 days late on the auto loan and haven't made payments on the cc's since about April/May. I want to keep paying on the personal loan and reaffirm it (if I can) and let everything else go. If I don't want to keep the car (and obviously the cc's) will i have a harder time getting another less expensive car after the 341 or discharge? Or do I continue to make payments on the car, do I give it up as a voluntary repo? Does any of this matter?? I'm so lost...??



Kelly Bluebook for my car is $6000, it has 85,000 miles..i figure it would be better to get rid of it and get something else.

[BassBoy]

You can keep the car if you choose, but with reaffirmations, you're basically excluding the debt from the BK and therefore, you will be responsible for the unpaid balance if you run into financial trouble for whatever reason and the car is repo'd. That aside, you CAN get financing for a car after your BK. It's not as hard as one might think. We have a lot of threads and great advice under the Buying A Car section that can be of great help to you.

Back to your current car:
Are you upsdie down?
Can you manage the payments after your discharge and the other debts are gone?
As you already realized, most of the filers who are upside down and filing BK have found it's better to let the vehicle go back to the lender and then start over after their BK.

Since you are 30 days late, and you may file within a month, you may want to get current on your auto loan. When your current with the loan on the day you file, the lender can not repossess the vehicle until you default the loan, files a motion to lift the stay, then wait for the motion to be granted and then the lender can come get it. By then, you would probably have your discharge and can move forward with getting another vehicle. If you go into the BK being 60 days late, it's possible the lender could repossess the vehicle before your discharge and you could be stuck without a vehicle because most lenders will not finance you with an open BK.

Why do you want to keep/reaffirm the personal loan?

[brkntaxachusett]

The reason i was thinking of paying the personal loan is becuz it comes out of my pychk automatically and I was hoping that it would help my credit score out in the future...

Thanks for the info on the car though. I'm going to get up to date on my payments this week and will be back on track with the car. I just don't want to end up without being able to get a car in the long run (especially with a small child).

You can keep the car if you choose, but with reaffirmations, you're basically excluding the debt from the BK and therefore, you will be responsible for the unpaid balance if you run into financial trouble for whatever reason and the car is repo'd. That aside, you CAN get financing for a car after your BK. It's not as hard as one might think. We have a lot of threads and great advice under the Buying A Car section that can be of great help to you.

Back to your current car:
Are you upsdie down?
Can you manage the payments after your discharge and the other debts are gone?
As you already realized, most of the filers who are upside down and filing BK have found it's better to let the vehicle go back to the lender and then start over after their BK.

Since you are 30 days late, and you may file within a month, you may want to get current on your auto loan. When your current with the loan on the day you file, the lender can not repossess the vehicle until you default the loan, files a motion to lift the stay, then wait for the motion to be granted and then the lender can come get it. By then, you would probably have your discharge and can move forward with getting another vehicle. If you go into the BK being 60 days late, it's possible the lender could repossess the vehicle before your discharge and you could be stuck without a vehicle because most lenders will not finance you with an open BK.

Why do you want to keep/reaffirm the personal loan?

[laurannm]

Where in MA are you located?

[AngelinaCatHub]

Brketc,etc. I can't pronounce it. IN MY OPINION, (like bellybuttons everyone has one) get rid of the car. You are going Chapter 7 and that is that and your credit won't be the same either way if you keep the car or not.

I purchased a car for cash locally that was an auction to a charity for 2K with only 95k miles and it runs great. For Ms. Cat we purchased an old police car for 800 with 112k and after I serviced it well and new plugs, it runs like a top. You are very much upside down with a 17k note on a car worth 6k. Get out from under it. Many places like goodwill and children’s homes advertise turn in your running car for a write off. Try these while you still have this car. Purchase for cash if you can and keep it under 1k in value. I think you will be better off. Only my opinion. 'Hub

[deafbroke]

I agree, let the car go. You can get another one later. I would also let the personal loan go. The one payment a month isn'r going to do wonders for your credit score. You can start fresh that way.

DB

[brkntaxachusett]

I don't want to keep the car. i want it to go bye, bye...what i was saying was if i keep the personal loan that i took out 2yrs ago and reaffirm on the loan would that help my credit score after the BK if I continue to pay it off...or would it be the same whether I just have a "fresh start" with everything?