722 Redemption question...Please Help =(

[gem561]

I have already filed for Chapter 7 on Oct. 31, 2008. My 341 hearing will be Dec. 4. I have called the 722 redemption and have been approved for a loan for my husbands F-150. We owe $32,000 and its worth $16000. My next vehicle payment is due no later than Dec. 10th. Should I continue to make these payments to my hometown credit union? I dont want to have to make a $600 payment if I dont have to. And it is due AFTER my 341 meeting. I dont know what to do =(

[lrprn]

Did you reaffirm the auto loan? (With twice as much owed on the loan than the truck is worth, please say no.)

Please...I'm not being judgmental....but I'm curious why you want to keep paying on a truck that you and your husband owe so much on when you could surrender it and start over without such a drag on your new start?

[gem561]

We opted to do the 722 redemption. We will be paying $16400 with a 22% apr for his truck and the remainder will be charged off in the bk. Weve (HE) decided to keep his truck because it is his dream car....and my husband is a stubborn ass! Sorry, getting off the point =( So, my compromise is to keep the vehicle only if we do the 722 redemption. I am not going to pay $32000 for his dumb truck =)

[lrprn]

We opted to do the 722 redemption. We will be paying $16400 with a 22% apr for his truck and the remainder will be charged off in the bk. Weve (HE) decided to keep his truck because it is his dream car....and my husband is a stubborn ass! Sorry, getting off the point =( So, my compromise is to keep the vehicle only if we do the 722 redemption. I am not going to pay $32000 for his dumb truck =)

So you and the "stupid ass" are going to pay 22% interest on a $16,400 loan for a truck that is depreciating every single day he drives it. Assuming the 722 loan is for 4 years, you two will be paying $516.70 every month and end up paying $24,801 dollars for his "dream". That's makes no financial sense at all. Your husband is jeopardizing your fresh financial start with this insanity. No 'thing' (and that's all a vehicle is - a thing) is worth it.

[cptne33]

Question-
If they let the car go in the BK I am assuming they would still need a car for transportation....the 772 allows them to keep the truck at 22%.

If they went out to buy a used truck somewhere I am sure they would still be paying in the 20%'s...and thats if they even get financed.

Am I mising something?

[gem561]

Our 722 is done. They paid our bank $13370. We owed $31000, because of rolling money over through the years from trading vehicles in and a couple skip-a-payments during the holidays. So we now owe 13 for our 2007 truck with 21, 000 miles on it, so its still very reliable. Our payment went from $580 to $425. The interest is 24%, but in the long run we wouldve winded up paying way more with our bank and now our monthly pmnt is lower. We can also re-finance in 1 year or if we were to say..."hit the lotto" and pay the vehicle off. We only owe 13 now. I think it worked out for me