Car Mess

[Hope2File]

I have no idea what to do. We have an auto loan that we intended to reaffirm when we filed (10/27). We were not upside-down on the loan, and we had an extended warranty that was still in effect. We were two payments behind at the time.

We received a reaffirmation agreement right before our 341 which was on 12/14. The first payment would have been due in December. We did not sign because, ironically, the warranty company filed bankruptcy and our vehicle is no longer under warranty. It is high mileage and at this point we are worried about having to replace a transmission or worse.

So we definitely do not want to reaffirm. However, there is no way we can make up 4 payments to do the ride-through. The finance company (it was a subprime auto loan) has not yet filed for relief of stay.

Our main problem is that we need the vehicle because we drive it to work. And I don't think there are too many options for buying something else before we are discharged.

Our 341 is continued, currently, pending title information on the vehicle that was requested from the state (we do not have the title).

Any ideas or has anyone been in a similar situation? Thanks!

[StartingOver08]

Once you are discharged you will most likely be in a better position to get another vehicle. If this one is high milage (how many??) then it might be best to surrender it in the BK rather than reaffirm a subprime loan on a high milage vehicle. JMO.

[LimpDisc]

Does your finance company require you to reaffirm? If you don't have to reaffirm I would keep the car until after discharge and let it to after finding a replacement.

[aces67]

Once you are discharged you will most likely be in a better position to get another vehicle. If this one is high milage (how many??) then it might be best to surrender it in the BK rather than reaffirm a subprime loan on a high milage vehicle. JMO.

I agree. I wouldn't reaffirm a sub prime loan.

[AngelinaCatHub]

There is a glut of good used cars out in the world today. Bk is one big reason and the Govmint car giveaway is another. Check Craigs list and just drive the neighborhood you will see. 'Hub

[Hope2File]

Thanks for the advice. We've been talking about getting something newer after we receive our discharge. However, I am not sure how well that is going to work out, since our track record with auto loans has not been great (we've had only subprime loans and they have all ended badly). In addition, I am beginning to think that maybe we should avoid another car loan for a while.

We are anticipating a large tax refund (that is exempt) and we may very well have enough after that to pay off the car. Is there any legal way to do this? Or would we wait until after discharge and then pay it off (if it isn't repo-ed by then)? Chances are we will be discharged before we receive our tax refund anyway.