Car - Keep or Give Back

[cloudship]

I have a car right now - I am making payments on it, am in good standing with the bank. It is worth about $8000, bu I owe $11,000 on it. The car is probably more than I need right now, but I do need a car of some kind.

Should I give the car back to bank, with the idea that I would not owe on the difference because it would be included in the bankruptcy, or should I hold onto it, as I need a car, my car loan is for a low interest rate that I would not be bale to get now, and it would help my credit rating to pay it off?

[bk2003]

I was in the same situation. My car payoff was 14,000 and it was only worth 7,000. I had over financed the loan and that really put me upside down. Your upside down figure isn't that bad. I would say keep the car since you have a good finance rate. You'd be paying 20 percent interest if you bought a car now. One the other hand if you're not happy with your car go buy a new one and start rebuilding your credit.

I was lucky and found a cosigner and got a 11.25 rate. That's another option you could look at also.

Good luck whatever your decision is...

[HHM]

If you CAN afford to keep it, keep it. It's much easier that way. However, only you can answer the real question, "if after BK, can you afford to keep the car (Including insurance, fuel, upkeep etc)

[BrokeCh7]

Car

In California i could keep the car if i was current and still have it discharge in the BK. BUT i would need to stay current and the bank would not be able to repo the car until i give it back to them or stop paying. If your payments are easy this may be your best option because after 6 + months after your discharge you will get a better car loan. I just purchased a car because i was not current and the money i owed the bank to bring the car current was better spent on a newer car. With discharge in hand i was getting quotes of 17.9% to 24.9% and was thinking i was going to end up walking. I was not able to buy the car of my dreams but got 4 wheels and an engin with low miles. I found that there are other complcations in looking for cars after the bk and not to write a book all i can say is WATCH OUT FOR THE VULTURES. You are considered fresh meat and an easy target for this brid.

Vultures: Con-men apearing to be compassionate and very helpful in selling a car. Reality over priced used cars the gereral public is not interested in and most dealers run from being sold to the distressed buyer

Distressed buyer: That you after a bk until some credit is created.

[cloudship]

Thanks. AS far as the upkeep, fuel, etc - those are, for the most part, going to be hte same no matter what kind of car I drive, and quite honestly I wouldn't be able to survive without one - I don't live in the city. I can afford the payments after the bankruptcy, so that may be abetter option then. If I were to turn around and give the car back, I would still need a loan for another car, and the high interest rate would offset the difference in getting a cheaper car.

Does having a current car loan (I have not been late on those payments) help credit ratings?