I traded my 2002 car that had some equity in it in on a new car which results in me basically have little or no equity value, in doing this I lowered my monthly payment by $200.00/month (72 month loan). My question is, I intend on reaffirming the car loan and paying it off over time after the BK is over. How long should I wait before filing chapter 7? The reason I need to file is excessive high interest unsecured debt and my min payments are more than I clear each month. I can buy 6 months or so of time by just paying the minimum and using my tax refund and annual bonus to suppliment my income to be able to keep making the minimums until it is safe to file (or a few months prior). I am a newbe and do not know if this was a mistake or not, I mainly did it to save the $200/month and not have to worry about repair bills for 3 more years. Did I screw up?
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What did you pay for your car? What are the monthly payments? What is the total amount of all your other debt? What is your current income? This will help in analyzing first of all if you should even reaffirm your vehicle v. just including it in your auto debt and keep making the payments or just let the car go after you file. The total amount of the other debt you have would determine if you should file chapter 7 or maybe some sort of debt consolidation would be beneficial. I mean, some people have debt, and other people have DEBT. -
I paid $20k for the car, $325/month. Other unsecured debt is $112k, which is $3k/month for minimum payments, House payment ($1700) , utilities, food, and etc. is about $4K. Income after taxes, ins and etc. is about $6K, so I go in the hole about $1000 per month. I have 10 accounts that have interest rates between 20% and 29% most used to be 5% - 10% even though I have never missed a payment on any of them, I have been 2 or 3 days late on a couple and they all jumped on the bandwagon to jack up to these ridulous rates which now have me thinking that the only way I will ever get out is to file BK.Comment
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