Filing next week...
We have 2 vehicles, owe more than they're worth but we need both vehicles. I've looked into redemption lending, but have run into a problem that I started a new job Aug. 1 and my husband started a new full time job in May, though he has been on a part time job for 1 1/2 years. The companies I talked to require a minimum of 6 months employment history.
I understand that if we keep making payments, but do no reaffirm, then we are not obligated to the loan-so if we come into a situation a year from now where we can do with one vehicle, we're clear.
Here is my thought process: in 2 months, my husband will be on his job long enough to perhaps get a loan to redeem the vehicle that is the most upside down. (It has a balloon payment on it, $7000 due in 2 years, and it isn't even worth the remaining regular payments.) So no matter what, we aren't reaffirming it!! My concern is, what happens if we try to redeem and can't get the financing?
I have student loans that will continue, so I'll have 'credit history' after the BK. If we don't redeem the vehicle w/ the balloon payment, I've thought about reaffirming the other as its in both our names and that would show credit on my husband's file after bankruptcy. (That loan has another 3 1/2 years of payments on it.)
I'm wondering: if we try to redeem but can't get financing before discharge, what happens? I know we will have to pay our attorney a $300 redemption fee even if it doesn't work out but we then be locked into reaffirming or surrendering it? If we want to buy a house (someday) would it be better to discharge both vehicles, so our credit file shows no vehicle payment obligations in our debt/income ratio?
We have 2 vehicles, owe more than they're worth but we need both vehicles. I've looked into redemption lending, but have run into a problem that I started a new job Aug. 1 and my husband started a new full time job in May, though he has been on a part time job for 1 1/2 years. The companies I talked to require a minimum of 6 months employment history.
I understand that if we keep making payments, but do no reaffirm, then we are not obligated to the loan-so if we come into a situation a year from now where we can do with one vehicle, we're clear.
Here is my thought process: in 2 months, my husband will be on his job long enough to perhaps get a loan to redeem the vehicle that is the most upside down. (It has a balloon payment on it, $7000 due in 2 years, and it isn't even worth the remaining regular payments.) So no matter what, we aren't reaffirming it!! My concern is, what happens if we try to redeem and can't get the financing?
I have student loans that will continue, so I'll have 'credit history' after the BK. If we don't redeem the vehicle w/ the balloon payment, I've thought about reaffirming the other as its in both our names and that would show credit on my husband's file after bankruptcy. (That loan has another 3 1/2 years of payments on it.)
I'm wondering: if we try to redeem but can't get financing before discharge, what happens? I know we will have to pay our attorney a $300 redemption fee even if it doesn't work out but we then be locked into reaffirming or surrendering it? If we want to buy a house (someday) would it be better to discharge both vehicles, so our credit file shows no vehicle payment obligations in our debt/income ratio?