Reaffirm car, though it needs new engine?

[aaengel]

I'm probably going to be filing for bankruptcy soon... I'm upside down (By $1100 or so dollars on a 2001 Corolla - based on normal Kelly Blue Book prices)... $3700 on loan - Car is worth $2600 with good engine.

I know cars can be reaffirmed... but this would be tricky.... Can I get them to drop the loan note to $1500-1700 in Bankruptcy and have them not take the car? A good salvage engine will probably cost $1200. The current engine still runs, and is driven daily, but I mostly go through an entire engine's worth of oil in 600 miles.... it burns it like mad, and has a rear main seal leak (I believe). Car has almost 159k on it. The 1998-2002 Corolla's are notorious for a piston problem which seizes the oil rings and causes a lot of oil to bypass and burn.

Or, my manager at my one job will sell me a 1997 Grand Am for $500 - 176,000 or so miles, but I've never inspected the car nor driven it... he drives it almost all the time now as his daughter is driving his truck.

[justbroke]

This is a perfectly place for me to say something... and wait for the rest before getting upset. Never reaffirm a car note that you are upside down on. In fact, most attorneys and judges won't let you reaffirm such a loan.

Second, if this vehicle is actually a 910-vehicle then you should probably redeem it. If the car was purchased (or refinanced) more than 910 days ago, then you can redeem it for current market value! You could even present evidence that it's not worth KBB (NADA) retail clean value through documentation showing needed repairs.

Last, the deal with your boss may be a good deal, but you need literally consider where you want to put your repair dollars. Either way, you'll be sinking money into either vehicle.

[AngelinaCatHub]

I'm probably going to be filing for bankruptcy soon... I'm upside down (By $1100 or so dollars on a 2001 Corolla - based on normal Kelly Blue Book prices)... $3700 on loan - Car is worth $2600 with good engine.

I know cars can be reaffirmed... but this would be tricky.... Can I get them to drop the loan note to $1500-1700 in Bankruptcy and have them not take the car? A good salvage engine will probably cost $1200. The current engine still runs, and is driven daily, but I mostly go through an entire engine's worth of oil in 600 miles.... it burns it like mad, and has a rear main seal leak (I believe). Car has almost 159k on it. The 1998-2002 Corolla's are notorious for a piston problem which seizes the oil rings and causes a lot of oil to bypass and burn.

Or, my manager at my one job will sell me a 1997 Grand Am for $500 - 176,000 or so miles, but I've never inspected the car nor driven it... he drives it almost all the time now as his daughter is driving his truck.

You would be foolish to keep that Corolla. As far as the Grand Am, tell your boss if you don't take it, we will. That is a damxxx good workhorse. Treat it right and it will last forever. In earnest, you will be far better off with that car. 'Hub

[btbeme]

Lots of nice cars available in AZ that have never seen snow, slush, or rust. Fly down on Allegiant and drive one back. They are on every street corner and estate sale down here. I just saw a 2005 Caddy DeVille with 35k miles on it sell for $5800 in an estate sale, less than half of Kelly Blue Book. Still had good tread on original tires and even smelled like new.