I had been planning to keep my car in my ch 7, but I'm re-thinking it. I was going to make 2 payments today, for October and November - over $1K. I have negative equity in it, with 3 years left on the loan, payments are $507/month. I'm just getting to where soon I will be making some progress on the principle.
Reasons for wanting to keep it - it is reliable, and still has a lot of warranty left on it, when I pay it off it will be an asset, the payoff will happen about the time I'll need the extra money for kid's college, and I travel 72 miles round trip to work and need a good vehicle, not a junker, to get there. I work behind a security gate, and it's not like I can take a taxi or bus to get to my job. Reasons for thinking I should get rid of it -- upside down by around 6K at least, maybe more, it is a bad debt and that is the whole idea behind filing ch 7, getting rid of debt.
Is a redemption loan worth it? I would think that even getting a loan for the true value of th car (9-10K I think), with 23% interest that is still a very high payment, for a longer period of time I would think.
I've thought about buying another vehicle, but my credit it toast, I'm going through a divorce and although the soon to be ex is making the payments on one, I am already financing 2 vehicles - way too much debt to income, and the loan would be really high interest, but wouldn't that $1K I'm about to pay today make a nice dent in a down payment?
I plan on filing in Februy or March, and if I keep making payments, that's another $3K down the tubes if I let it go, which would get me into a halfway decent used car I think.
Also, I think I need a car payment to keep my expenses up - I used the expense calculator, and I'm about $600 less than my income (been using savings to make ends meet, and not paying my mortgage).
What would you suggest?
Thanks
Reasons for wanting to keep it - it is reliable, and still has a lot of warranty left on it, when I pay it off it will be an asset, the payoff will happen about the time I'll need the extra money for kid's college, and I travel 72 miles round trip to work and need a good vehicle, not a junker, to get there. I work behind a security gate, and it's not like I can take a taxi or bus to get to my job. Reasons for thinking I should get rid of it -- upside down by around 6K at least, maybe more, it is a bad debt and that is the whole idea behind filing ch 7, getting rid of debt.
Is a redemption loan worth it? I would think that even getting a loan for the true value of th car (9-10K I think), with 23% interest that is still a very high payment, for a longer period of time I would think.
I've thought about buying another vehicle, but my credit it toast, I'm going through a divorce and although the soon to be ex is making the payments on one, I am already financing 2 vehicles - way too much debt to income, and the loan would be really high interest, but wouldn't that $1K I'm about to pay today make a nice dent in a down payment?
I plan on filing in Februy or March, and if I keep making payments, that's another $3K down the tubes if I let it go, which would get me into a halfway decent used car I think.
Also, I think I need a car payment to keep my expenses up - I used the expense calculator, and I'm about $600 less than my income (been using savings to make ends meet, and not paying my mortgage).
What would you suggest?
Thanks