Hi,
We will be filing ch 7 in a couple of months. Among plenty of other debt, this summer (a couple months ago), we took out a loan of $10K and had to put up our paid-off car as collateral - worth only $5K or so. This is a 5-year loan and it's at a horrible interest rate, making our payments $300 a month.
Is there anything that can be done about this in the BK? I'm guessing not, since it's secured. We can't afford the payment...what should we do about it?
I was thinking we could buy a junker for a couple thousand right before we file, and just surrender the collateralized car in the BK...I don't know. I don't know if we'd even be able to save that much in just a few months. I am calling the attorney tomorrow to see what he says, but does anyone have experience with this?
Let me know if you need more info. I'm new to all this. Thanks.
AC
We will be filing ch 7 in a couple of months. Among plenty of other debt, this summer (a couple months ago), we took out a loan of $10K and had to put up our paid-off car as collateral - worth only $5K or so. This is a 5-year loan and it's at a horrible interest rate, making our payments $300 a month.
Is there anything that can be done about this in the BK? I'm guessing not, since it's secured. We can't afford the payment...what should we do about it?
I was thinking we could buy a junker for a couple thousand right before we file, and just surrender the collateralized car in the BK...I don't know. I don't know if we'd even be able to save that much in just a few months. I am calling the attorney tomorrow to see what he says, but does anyone have experience with this?
Let me know if you need more info. I'm new to all this. Thanks.
AC
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