Existing car kept after BK but it's not helping rebuild credit...?

[LSUTiger32]

It's just that I've heard this story before . Everything was perfect, and then the debtor loses their job. Next thing, they are on here at BKForum... asking if the reaffirmation is valid and what can the creditor do to them. I understand exactly why some Judges refuse to sign any reaffirmation agreement when it is not legally necessary. While I don't advocate it, I do understand the desire by some to keep credit-lines (by reaffirming the debt) and chase their FICO score.

Love it! An excellent reason not to go back into debt at all.......stuff happens.

[backtoschool]

I agree with you justbroke that it is always better to not have the legal obligation if possible. But in this case, with the interest rates being low, I don't see much harm to reaffirming the debt. I think showing positive trade lines is very important post bk, and in some cases will outweigh the risk of future inability to pay. That risk will always be there.

Of course this is just my opinion, and I totally see your point of view and agree with a lot of it.

[mark303]

Well I bought the car before I claimed BK with the knowledge that I would probably be doing BK and if I don't get a good car then I'd have to wait some time to get my credit build back up enough to get a decent interest rate. My interest rate on the loan wasn't great, but the price I paid for the car (private party) was amazing so that definitely influenced my decision. If I was upside down in the car, it would've been smart to give it back but I wasn't then and i'm even less now after paying on it for another year. My whole point was it's a shame to have paid off a 4 year car loan and have it not even show up on my credit report!

[justbroke]

Of course this is just my opinion, and I totally see your point of view and agree with a lot of it.

Both points have merit. I reaffirmed one debt, a car, and I didn't do it because I needed a trade-line. I had positive equity, and in Florida you must redeem, reaffirm or surrender personal property. The wife would have killed me if I had to surrender "her" car! LOL

So there could be a personal side to it as well.

(Now, in the back of my head, I'm saying... do as I say, not as I do!)

[LSUTiger32]

Both points have merit. I reaffirmed one debt, a car, and I didn't do it because I needed a trade-line. I had positive equity, and in Florida you must redeem, reaffirm or surrender personal property. The wife would have killed me if I had to surrender "her" car! LOL

So there could be a personal side to it as well.

(Now, in the bank of my head, I'm saying... do as I say, not as I do!)

Oh yeah, no doubt. I am not sure if it is Louisiana or if it was Ford Credit, but either way it was do it or turn in the car. Besides.....if momma ain't happy, ain't nobody happy!

[backtoschool]

Both points have merit. I reaffirmed one debt, a car, and I didn't do it because I needed a trade-line. I had positive equity, and in Florida you must redeem, reaffirm or surrender personal property. The wife would have killed me if I had to surrender "her" car! LOL

So there could be a personal side to it as well.

(Now, in the bank of my head, I'm saying... do as I say, not as I do!)

Maybe it's a "woman" thing. I get very personally attached to my cars. I reaffirmed a car loan that I got as part of my pre-bk planning. I did this for the better interest rate and to have a positive trade line survive bk. I ended up trading the car in recently, but I did want "my" car to be in legal limbo, so I reaffirmed it. It was a 75% emotional decision, 25% logical decision to have the trade line survive.

[Logan]

Maybe it's a "woman" thing. I get very personally attached to my cars. I reaffirmed a car loan that I got as part of my pre-bk planning. I did this for the better interest rate and to have a positive trade line survive bk. I ended up trading the car in recently, but I did want "my" car to be in legal limbo, so I reaffirmed it. It was a 75% emotional decision, 25% logical decision to have the trade line survive.

I think it's important to be comfortable. I don't drive much and sometimes when I go to work I even take the bus but at this stage of my career going to work is 'easy' but you have to be comfortable--when I go to work and work hard the last thing I want to do is get into an old car or something I don't want wishing I had something better.

When I shopped for my last vehicle (2010 Suburu Outback) anything comparable that was used was only around 5K less yet had 40K to 50K miles on it. To really get the price down I would have had to buy a vehicle with 60K or more miles and then what's the point? The car with 60K will not last as long, I don't know the history and no longer has a warranty. My new car will be paid off prior to hitting 60K but it has been mine from the beginning and I'll be very happy....

Uh Oh...crying baby....

Logan