I currently have a 2 year old car with high mileage due to work commute (25,000 miles a year) and a very low interest rate since my credit was stellar prior to getting into my current mess.. I want to keep the car because it's a hybrid with many benefits for my long commute.. But I'm wondering.. Due to the high mileage should I consider not reaffirming the loan, giving it back to the bank, and buying a new one? I'm assuming if I could get approved for a loan at all post BK the interest would be sky high and require a large down payment that I'm not in the position to provide..curious as to people's thoughts..
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You should only reaffirm the debt if you have equity in the car. Even then, reaffirmation may not be a good idea. You usually can keep the car even if you don't reaffirm, as long as you keep payments current. How this is done in your BK petition varies by court. Discuss this with your attorney. Very few lenders will repossess because of the lack of reaffirmation when payments are current.LadyInTheRed is in the black!
Filed Chap 13 April 2010. Discharged May 2015.
$143,000 in debt discharged for $36,500, including attorneys fees. Money well spent! -
If you're in so much debt that you're forced to file for chapter 7 bankruptcy, you should probably think about buying used instead of buying new.Comment
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If the car is worth a lot less than the loan balance, you can consider a redemption.filed chapter 13..confirmed...converted to chapter 7...DISCHARGED!Comment
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Agreed.Originally posted by avengers View Post
Fresh out of BK, some lenders will give you very high APRs. Capital One is one who may not. They were sending me low APR offers not too long after discharge. They seem very BK-friendly.Chapter 7, above median, no asset. Discharged with no UST involvement.Comment
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Yeah it's a tough call.. The car is worth about 3K less than I owe on it, if I didn't commute over 100 miles a day to and from work is give it back in a heartbeat but I depend on the hybrid to get me into the HOV lane and save me $500 a month on gas... If I'm allowed I'll keep it and continue paying it.. If I can find a new job closer to home I would surrender it in a heartbeat.Comment
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