What to do with Cars?

[inozip]

We have not filed BK yet... have two cars.
Pontiac Owe $11K - Worth about 7K Payment $272
Infinnity FX 35 Owe $32K Worth about $25K Payment $700

Clearly we are upside down in both cars. Payments are getting tough to keep up with. Don't know if we can make both payments next month at all.

Should we have the banks come pick them up? Then what? I need a car to get to work!

Any advice appreciated!

[ansky0007]

Might want to keep the cheaper one... After BK its going to be almost impossible to get a loan for another car.

[Stilltheone]

Hi!

We kept our car (2003 Cadillac Escalade) and we probably shouldn't have.

We were also upside down in it. Of course, now it's more than when we filed. (Owe $19K, worth about $13K) At the time we filed, we actually had equity that we had to exempt in it. Go figure!

After BK, it isn't impossible to get another loan. In fact, we just got approved for $14% for our new minivan.

If it were me, I'd keep the cheaper car also. Let the more expensive one go for the time being.

Good luck to you!

[Cali]

Getting a car loan after you file would depend on the company and how your credit report looks.

If you can't afford to buy anything, what about the bus or keeping the Pontiac?

[b_girl]

You might explore redemption options, but you would have to come up with the money somehow in order to redeem one or both vehicles. I don't know all the ins/outs of this option, so you might want to ask your attorney. Course, ours never heard of doing this (we replaced ours rather than redeemed). Didn't stop us from exercising this option, and it didn't interfere with our BK, so I'm glad we did it. I agree that getting a car loan from here on out is going to be difficult for alot of us.