Paying off car? ex-H in BK

[mylife05]

Joint car-loan with ex-Husband. My Ch. 7 was discharged last April ('05). I re-affirmed the loan. Payments have always been on time, and I've made every payment (not him). He filed Ch. 7 in Oct, and his deadline for Objections was Jan. 13., just waiting for his discharge. He did not reaffirm (it's my car), and he signed something stating that he had no intention of paying.

I have enough $$ to pay it off, and I am anxious to go ahead and do so (I think I will save some interest to do it NOW, instead of waiting, say, a month or so? right?). And, I'm anxious to get the "pay-off" on my credit ASAP. I am going to trade-in very soon.

There is a note on the loan-account, flagged because of his bankruptcy. (I work at the bank, but not in that area, so I see the flag, but don't understand.)

Hers's my question: If I try to pay it off, and ask for the pay-0ff amount, will there be too much red-tape because of ex-H's bankruptcy? Or should I just wait for his discharge, which will hopefully be mid-Feb? I just hate to stir up a hornets nest for no reason.

[StaciMM]

If his discharge is right around the corner, why not wait?

One thing-the title will likely arrive with both names on it.

[mylife05]

Thank you Staci.

Well, that's my question exactly. hehe Trying to decide if I'm being too impatient, and if it's worth it more to pay-off now or wait.

Benefits of paying off now: less interest (if I understand interest correctly), better for my credit report, title can be on its way before I car-shop

Benefits of waiting for the discharge: no red-tape of his BK

[StaciMM]

Paying off the loan could actually hurt your report... Accounts, once closed, no longer have as much score impact. If you don't have other accounts re-established.

The downside to FICO is that it is hard to predict! What seems logical isn't always, LOL.

[mylife05]

ah. Good point. I was thinking "Paid-off" would look good, while car-shopping and looking for financing.

[Minnymouth]

You need to get that title in your name only.....get his name off the title.... otherwise could be a problem trading in and selling.

I would wait to pay it off........ just keep up the payments so they don't repo it on ya.... especially since its tied up in his bankruptcy.

[SinkingFast]

Plus, too, the closer you are to the end of the term on the note, then more and more of each payment is principal. Interest on car loans is typically collected on the front end of the loan. If you have just a few payments remaining you probably won't save yourself all that much in interest. The bulk of each remaining payment is being applied to the principal of the note. An easy way to know for sure is to get a pay-off balance, and then multiply your monthly payment by the number remaining. That will give you a rough idea of how much interest $$ you'd save by paying off early.

Sometimes, when you're that close to the end, it's just as well to go ahead and trade, and let the dealership handle the pay-off. It's really kind of a wash on the payments. You pay $X on this car or $Y on that car for the interim months. The one other factor to consider is if you were planning on waiting a few months in between car loans to save some extra $$$ for the purchase of the new one.

[mylife05]

I guess I'll wait til he's discharged. Being impatient!

[bkfiler]

if the car was listed in bk and was not reaffirmed then is it going to show payments anymore anyways?

i thought they showed it as IIB $0 balance and only showed paid when the account was paid off?

also, if the car was in both names before then the car will come in both names when you pay it off.

[StaciMM]

She filed separately from the EX, she reaffirmed when she filed, and he filed later (did not reaffirm). SO the loan should show payment history on her report but not on the EX.

[bkfiler]

if he didnt reaf and she did then i think his name will still be on the title, since she is paying the thing. how is she going to take it from him. if they repoed it would be one thing but they arent going to do that if she keeps paying.

he needs to sign it over to her and if he is a bastard then he wont.

[mylife05]

Yes, his name will still be on the title, and he will sign it over.

And Staci was right. The loan shows as normal on my credit report... all payment history... as if I never filed BK (beautiful!). Wish my mortgage was the same .

[bkfiler]

Yes, his name will still be on the title, and he will sign it over.

And Staci was right. The loan shows as normal on my credit report... all payment history... as if I never filed BK (beautiful!). Wish my mortgage was the same .

well get him to sign it over right away. peole have a funny way of coming up with new ideas over time when they need things.