Please Advise!!!! Auto Repossession

I had a bk in 2005 with my ex-husband. I have rebuilt my credit since that time and was even recently approved to be on the purchase of a new home (my new husband and I did not add my name to the note however). My first auto loan was approved a year ago with a very high interest rate--11.5%. It is for a truck that we can no longer use or trade in. We are expecting and desperately need a more appropriate family car. Our truck payment is RIDICULOUS and we can not afford both. My husband's credit is excellent and he wants to buy a new vehicle and suggested I just "turn in my keys" since we are really stuck with this useless truck. I am desperate to avoid this because I am still trying to rebuild my credit and feel that, while my auto loan was high, I have obtained credit and have a high 680+ or so credit score. What should I do? What does a voluntary repossession do to your credit? Is it true that I may still owe the money through a judgment and may have to go to court? Just looking for advice at this point on what I should do. Does anyone know of any refinance companies that might work with me to stretch out the payments and get them at a reasonable amount without having to return the vehicle to the bank???

Thanks,

Concerned

If you want to rebuild your credit, you will not allow the car to be repossessed. Having a BK in 2005 and then having a repossession on your records 4 years later is going to drag you down again. That is a no brainer. Put yourself in the creditors place pulling up a credit report showing that and the time frame. You are in the process of rebuilding your credit after a BK discharge and apparently have kept a clean record until this consideration. It is up to YOU how you want to handle your credit and up to you as to what appears on your credit reports in how you handle it.

You and your husband should look into possibly refinancing the vehicle to get the payment lowered; and depending upon how much you are upside down on this vehicle, many dealerships now are offering all sorts of options in paying off trade in's if a vehicle is purchased with them. There are many things/options you can investigate but I would certainly let repossession be the last optoin in your situation.

If you have made your payments on time with the Truck, why don't you check into your local credit union. The rates are far better at a credit union than rolling in the upside down portion into another vehicle.

There comes the time to pay the piper - and if you roll the negative equity into another vehicle you will find yourself in hot water with a different car. Your best option is to refinance the truck to a much better rate and work like the dickens to either pay it off or pay it down so it can be sold without having a repo.

Your credit score will take a huge dive if you have a repo after BK.

(I merged your two identical threads posted in different forum areas. You'll get more and better responses this way. -lrprn)

Tough situation. Have you tried selling the truck?

A voluntary repossession will take a significant hit on your credit score. However, in the long run doing what's best for your growing family is more important than a credit score.

Have you tried Carmax to buy it and get something with a more reasonable payment?