Vehicle

[dover]

I am about to file for Chapter 7 and am wondering about my car. It is only worth $5,500 or aproximately that much and the loan I have on it is something like $8,500. Of course when they financed Wells Fargo didn't seem to mind the value difference. Anyway, what happens to the car and do I continue paying payments if I want to keep it? I didn't get a chance to really ask these detailed question to my attorney yet. Thanks

[familyof7]

most likely because it is worth less than what is owed so it is not worth your trustees time to take it and sell it.

[JRScott]

As long as you stay current on payments you should be able to keep it.

[dover]

I am not sure it is worth keeping. It does have $5,500 of value but it won't be worth trying to continue to pay the $8,500. So if I want to keep it, I would keep paying the payments until the $8,500 is paid off?

[lrprn]

I am not sure it is worth keeping. It does have $5,500 of value but it won't be worth trying to continue to pay the $8,500. So if I want to keep it, I would keep paying the payments until the $8,500 is paid off?

It depends on when you bought the car.

If you bought the car more than 910 days ago, then the value can be crammed down to what the vehicle is actually worth when you file.

However, if you bought the car less than 910 days ago, then you have to pay the whole $8,500.

Talk to your bk lawyer about this.

[dover]

Thanks. I am bought it five years ago and I think my attorney mentioned your comment "then the value can be crammed down to what the vehicle is actually worth when you file".

Thanks!

[rrockinggramma]

you might be a good candidate for the 722 redemption. Check into it with your attorney.

[sofarindebt]

We have the same situation

We have an '01 Nissan Maxima. Our loan balance is $9,400 and it is worth about $6300 (BB value) but it has very high mileage about 170K miles, needs new tires and brakes, etc. We offered Chase $1590 for it, they accepted. So we went from $298 car payments every month to just buying the darn thing for $1590. If you really want it, make an offer (providing you have the cash to pay it).

[dover]

Wow, thanks for that information. Never thought about just trying to buy them out. Did you offer them the $1,590 before you filed? Or was it part of your Chapter 7 filing?

[sofarindebt]

we offered it a week ago

we wanted to wait right before we were discharged .....they never had the automatic stay lifted, if they would have filed a motion, we would have offered then.