Is there any significant gain in paying a car loan off early?
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Not if you're going to file bankruptcy soon. If you don't have enough exemptions to cover the non-exempt portion... you just threw money out the window.
Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
Status: (Auto) Discharged and Closed! 5/10
Visit My BKForum Blog: justbroke's Blog
Any advice provided is not legal advice, but simply the musings of a fellow bankrupt. -
I'm post Chap 7.
I would like to purchase a car and was wanting to know what are the benefits if any of paying it off early?Comment
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You would pay less on the interest over time.Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
Status: (Auto) Discharged and Closed! 5/10
Visit My BKForum Blog: justbroke's Blog
Any advice provided is not legal advice, but simply the musings of a fellow bankrupt.Comment
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It depends on the context....
A car loan is still a debt, it accumulates interest (assuming it is not a 0%) loan. So you save some money by paying off early and you will lower your fixed, monthly expenses, There is certainly NO down side to paying off early.
However, if you also have credit card debt, I would recommend paying off the credit card debt FIRST, then worry about the car loan.Comment
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