? about 722

[frogsdime]

Ok my wife is filling Ch 7 on 1 Jan. We are not sure if we should do a 722 re-affirm (i think that is what its called) or just do a replacement on her car.

She owes 21k and its worth 12k. She needs a vehicle but if we can start out fresh with the replacement then we would like to do that and let her car go with the BK. But from what i gather the interest rate will be high. 14% we could deal with but any higher is crazy.

So i am wondering what is the best route to take let the car go and do a replacement or just keep the car and make the payments and get a 722 for what she owes on it. Also looking for the cheaper route.

Thanks

[okiemom2008]

Ok my wife is filling Ch 7 on 1 Jan. We are not sure if we should do a 722 re-affirm (i think that is what its called) or just do a replacement on her car.

She owes 21k and its worth 12k. She needs a vehicle but if we can start out fresh with the replacement then we would like to do that and let her car go with the BK. But from what i gather the interest rate will be high. 14% we could deal with but any higher is crazy.

So i am wondering what is the best route to take let the car go and do a replacement or just keep the car and make the payments and get a 722 for what she owes on it. Also looking for the cheaper route.

Thanks

We have a car that we owe 28k on and worth 10k on kelly blue book. We can 722 it for 10k but we are giving it up and just going to get 2 old trucks that we dont have to worry about financing. The 722 interest rate for us was 24%

[frogsdime]

We have a car that we owe 28k on and worth 10k on kelly blue book. We can 722 it for 10k but we are giving it up and just going to get 2 old trucks that we dont have to worry about financing. The 722 interest rate for us was 24%

See that is what we are concerned about the crazy rate. Is there a way to get another vehicle without the outrageous rate? Like the replacement option?

[coloradomrg]

replacement rate is the same

[frogsdime]

replacement rate is the same

Oh ok i see. Well dang what do you think our best bet is to do then? Just keep the car and keep making the pmt now. by the way the rate she has now is like 7% i believe. But then again she is 10k negative.

[DisneyGirl]

We did this on one of our vehicles. Even though the interest was 24% we paid it off sooner since we owed MUCH less and our monthly payment was almost 1/2 what we were paying before.

[okiebk09]

we are letting 2 cars go that we are upside down in and starting over regardless of the intrest rate. if you have the opportunity to start new you should. you will never get out of that car being that upside down unless you keep it to pay it off. and if the payment is not affordable then i would give it back.

[frogsdime]

we are letting 2 cars go that we are upside down in and starting over regardless of the intrest rate. if you have the opportunity to start new you should. you will never get out of that car being that upside down unless you keep it to pay it off. and if the payment is not affordable then i would give it back.

Ok that definitely makes sense and your saying that we should go ahead and get the replacement loan? let them have the car and get a newer one?

[gymbofreak]

I let my car go back and went to the car lot and got another prior to filing and before my credt score went south.

[frogsdime]

I let my car go back and went to the car lot and got another prior to filing and before my credt score went south.

But i thought they would look at that as FRAUD. Or make you wait 6 months to apply? Did you let your car (repo) or just added in the negative to your new car? Or r u saying that you let ur car go back during your filling and got another one before you discharged your BK

[journey]

I had thought of getting a car befor i filed. My attorney said go ahead. Just dont put alot of Equity in it.

I backed out because the one i had was paid for. but was going to get one because i new after i filed my Credit would Tank.

[jribe]

Ok that definitely makes sense and your saying that we should go ahead and get the replacement loan? let them have the car and get a newer one?

please be careful! if your wife is filing Jan 1 - it sounds like it's too late for her to get a new loan/car without someone claiming fraud. If you haven't filed it may be better for you to get the car under your name. If you have an attorney i would advise with them. I'm not filing until June, but am in the same situation car wise. My attorney suggested letting my current one go (10-12k over value) and buying a less expensive vehicle with a lower payment. Most of the trustees *do not* want to see a replacement car be new (just an FYI), so i would just be careful with that.. good luck

[TEW]

Ok my wife is filling Ch 7 on 1 Jan. We are not sure if we should do a 722 re-affirm (i think that is what its called) or just do a replacement on her car.

She owes 21k and its worth 12k. She needs a vehicle but if we can start out fresh with the replacement then we would like to do that and let her car go with the BK. But from what i gather the interest rate will be high. 14% we could deal with but any higher is crazy.

So i am wondering what is the best route to take let the car go and do a replacement or just keep the car and make the payments and get a 722 for what she owes on it. Also looking for the cheaper route.

Thanks

722 redemption works for some people but there can be down sides to it. If you are close to going over means and you reduce one of your allowed expenses it can put you over. It depend on what you petition looks like.

[frogsdime]

great advice from all. Just want to make a wise decision on this.

I think we are going to just do the redemption and make the pmts and try to pay it off early.