What do I do with the van?

[hecplar]

My husband and I are filing BK. The paperwork has not yet been filed (soon to be) the attorney has all the money. We are upside down in the van loan. We owe $15,000 and the van is only valued at 6,000. We were thinking of including the van in the BK, it just doesn't make sence to keep it as the payment is 474 a month! How long will it take for them to come and take the van if we include it in the BK? How am I going to get a car loan after they take the van? I still need means of transportation. Can I still get a car loan after they take the van? Would it be insane to purchase something more affordable before the BK? Do we have to wait until discharged?

[HHM]

First off, you can't really leave the van out of your bankruptcy, and your attorney would probably say the same thing. If you do a chapter 13, you can do a cram down and pay off the van at market value in your chapter 13 plan. If doing a chapter 7 and you don't reaffirm the debt, you have to voluntarily and cooperate in turning it over.

Since you have an attorney, these are questions you should be asking him/her.

[HRx]

My husband and I are filing BK. The paperwork has not yet been filed (soon to be) the attorney has all the money. We are upside down in the van loan. We owe $15,000 and the van is only valued at 6,000. We were thinking of including the van in the BK, it just doesn't make sence to keep it as the payment is 474 a month! How long will it take for them to come and take the van if we include it in the BK? How am I going to get a car loan after they take the van? I still need means of transportation. Can I still get a car loan after they take the van? Would it be insane to purchase something more affordable before the BK? Do we have to wait until discharged?

If your credit can allow you to purchase more affordable vehicle now, then do it. And simply tell the lien holder of the van you're doing a voluntary repo. Yes, you'll eventually be able to purchase another vehicle post bankruptcy, but you'll have to deal with a dealership that specializes in subprime buyers, and your interest rates will be double digits. I've seen interests rates as high as 25%.

Good Luck!

[hecplar]

What to do with the Van

Well, I think my credit may allow for us to get another loan, I'm just concerned that this will have some affect on the bankruptcy. I mean taking on a new loan right before you file....is that ok? The paperwork has not yet been filed. If we purchase another vehicle, do I tell the attorney? I have spoken to the attorneys office and I went about this senerio with her and she basically told me she doesn't want to hear what I'm saying....meaning to me I guess we could actually go out and get another car now.

[HRx]

Well, I think my credit may allow for us to get another loan, I'm just concerned that this will have some affect on the bankruptcy. I mean taking on a new loan right before you file....is that ok? The paperwork has not yet been filed. If we purchase another vehicle, do I tell the attorney? I have spoken to the attorneys office and I went about this senerio with her and she basically told me she doesn't want to hear what I'm saying....meaning to me I guess we could actually go out and get another car now.

Getting a cheaper car now, will not affect your filing. Just use common sense and purchase a more affordable form of transportation, and do allow temptation to go out and purchase a vehicle with a lot of bells and whistles. You're going to want to focus on purchasing a reliable vehicle that will get you from point A to point B.

[hecplar]

Will the new vehicle then be listed on the Bankruptcy? Should I let the attorney know that we purchased another vehicle?

[HRx]

According to the law, you'll need to list the new vehicle on your bankruptcy petition. But just contact the lien holder let them know that you want to keep the vehicle, and will continue making payments on it. Despite, the law people oftentime forget to list the cheaper/new vehicle and live happily ever after.

Good Luck!

[hecplar]

Todd...we found a used vehicle that we are interested in purchasing. The only thing is with tax and title and all that.... the new car loan amont would be more than whats left on the minivan right now. Does this matter? The new car loan will be $150.00 less payment wise than the minivan loan. Will this be looked at by the Trustee. Will the trustee wonder...what the heck are these people doing? Does all this even matter.

[HRx]

Hecplar,

Have you explored options in getting the Van refinanced, to reduce your monthly payments?

-Todd