Make sense

[325Falcon]

Does it make any sense whatsoever to keep any "bad" debt when filing a CP-7 ? IE: upside down loans on a car.

We have made the choice to let one of the cars go back to the bank. Now I am thinking it would be wise to let the other one go back also and be totally bad debt free. We could certainly make due with some cheap beater car for a few years.

The more I think about it, the more it makes more since to me get rid of it ALL as oposed to all but one bad debt.

Another thought, is it unheard of for a bank to reafirm a car loan for the acutal "book" value of the car instead of the full amount owed on the loan?

Any thoughts?

[familyof7]

that would be a wise decision in my opinion.

[325Falcon]

Soppose we make the payments untill we file. Might it take the bank several more months of missed payments after discharge to repo the car? Or after discharge do I cease have any ownership in said car?

Seems to me it would make more since for a bank to reafirm at the actual book value as opposed to repoing the car.

[keepmine]

It never hurts to offer. That's why 722 redemption loans are available.

https://www.722redemption.com

If you can't get them to deal, let it go.

[325Falcon]

Thanks for link. I did not know about this bank.

I will certainly be applying. Has anyone ever delt with these folks?

Now I think its a no brainer. All "bad" debt needs to be discharged including cars.

[sickandtired8]

Thanks for link. I did not know about this bank.

I will certainly be applying. Has anyone ever delt with these folks?

Now I think its a no brainer. All "bad" debt needs to be discharged including cars.

722 redemptions charge 20 plus percent interest. Even if you let both vehicles go back, you could probably get a better interest rate then that on your own. We applied for a loan after our 341 and got 12 percent interest. We got a 2005 trailblazer with 8000 miles on it. THere is light at the end of the tunnel. I would avoid the 722 redemption like the plague. S&T

[HHM]

You can do reaffirmations at a reduced amount. When it comes to cars and if you are serious about possibly letting it go, you can view the reaffirmation process as a chance to negotiate a better deal. It is not unheard of for car companies to reduce the principal owed, lower the interest rate, shorten the number of payments in order to keep from having to repo the car.

Granted, "negotiated" reaffirmations are rare, but they are possible.

[klux]

Granted, "negotiated" reaffirmations are rare, but they are possible.

I did this back in 2005. I was in a chapter 13 where the vehicle was being cram downed on, and then I converted to a 7. I called the bank and said that I would agree to pay $9,000 (balance of amount they would've received in chapter 13) vs. the 18,000 that was owed, with a payment not to exceed $300.00/month with a 9% interest rate and they accepted it. Otherwise I would've just returned it to them I told them, it was their choice is the way I made it sound.