Car Loan

[jakeinTX]

I am trying to come up with a number of answers to questions before I meet with an attorney this Wednesday for BK start. I think my income is going to keep me from doing a Chapter 7, but I have two car loans;

2005 Dodge Ram 1500 Quad Cab 4x4 I owe $17k and my monthly payment is $340/month. It's value (Even with gas prices coming down) is probably about $9k trade in (I had it up for sale for 2 months, not even one call).

2004 Ford Expedition 2wd XLT I owe $14.5k on at $322/month. Like above vehicle it's value is very low.

Do lenders prefer during a BK to repo the vehicles and sell on their own or to rework vehicles loans to lower payments or some other item to keep from having to repo?

Thanks
Jayson

I would like to keep vehicles if attorney says bank may re-work. Otherwise I believe that I maybe headed towards one of the high interest companies. I am not even sure I could get financing for car in a pre-BK status?

Any answers anyone may have to these questions would be appreciated.

JakeinTX

[beachymama]

Have you applied with a loan redemption company? Bankruptcy code 722 allows you to pay the blue book value and get a new loan for that amount (so $9000 value instead of the $17K). This should make your payments much less then they are now.

I have been reading about it all night, but I have not read about anyone actually going through this process.

[AngelinaCatHub]

Jayson, only in my opinion: you are here for a reason. If you are bk7, why not get down to what you can afford in both insurance and fuel? Do you need two vehicles? If not, get rid of the one that uses more gas. Don’t count on gas going down as it could well go back up considering what is going on with Russia.

Not knowing more, this is only an opinion. ‘Hub