Question about vehicle and Ch. 7

[mmcconn2]

I am filing for BR and I work for an automotive company and the vehicle I drive is financed through our finanace company. My attorney thinks I should let my vehicle go in the BR but I am concerned if I do that that it might have a negative impact on my job, has anybody had experience with this situation? Secondly if I let my vehicle go how easy will it be to get another one? My vehicle is 6 years old has 144000 mile and I still owe $9000 (Full size SUV) Thanks for any comments

[robivi3]

I work for a large Government Agency. Our Credit Union is headed by the Agency Director. I reaffirmed my debts to them and thus continue with full benefits including a $1000.00 dollar loan (no credit check) every four months. I understand your predicament. In a private company I'm sure the ramifications can be much worse than in Government.

The problem may be with your Trustee. The Trustee is a TRUSTED friend of the Court and responsible mainly to your creditors, he is not an impartial arbitor. It may be to your benefit to try and sell it or turn it in if you can. You will surely have to list the vehicle in your schedules, no matter if you are upside down or not. Don't try to avoid emarassment by hiding the asset, it can complicate things.

Todd is the person to give you a real answer but I'm just giving you my experience. Either way, someone you work for is probably going to find out about the BK if you go into it owning the vehicle.

You can get another vehicle one day out of BK in some cases. The interest may kill you.

[HRx]

I am filing for BR and I work for an automotive company and the vehicle I drive is financed through our finanace company. My attorney thinks I should let my vehicle go in the BR but I am concerned if I do that that it might have a negative impact on my job, has anybody had experience with this situation? Secondly if I let my vehicle go how easy will it be to get another one? My vehicle is 6 years old has 144000 mile and I still owe $9000 (Full size SUV) Thanks for any comments

Hi,

As per the law, you are supposed to included all debts in a BK filing. The best thing to do is contact the lien holder directly-yourself, and explain to them that you're going to file for BK but want to retain the vehicle. See if you can negotiate a Reaffirmation contract that is identical to your existing finance contract. Once you've contacted the lien holder, tell your attorney you want to have your vehicle reaffirmed. If you're current on your monthly car notes, and it's more fiscally beneficial to them to reaffirm your car. There shouldn't be a problem doing this.

Doing the above would be more beneficial than trying to purchase a new car post BK. Because 99% of people will be charged subprime interest rates, and have to make a 10 to 20 percent down payment.

Good Luck!