Confused about auto credit score and other car questions

[basketsbears]

Hi,

I can't remember if I have asked this before or not. But - I have heard there is a auto score. Until November, we have paid everything on time and stopped paying unsecured stuff. Our auto loans have never been late. So, when we file BK this summer (ch 7) and after it is discharged/closed, we may turn cars back in depending upon what type of deal we can get.

I know since we will not be reaffirming our vehicles our payments after that will not show up, but does our history prior to filing show up somewhere to car dealers/finance companies? Also both of our vehicles are with Ally, if we keep one and return one do they decide they want both vehicles back? Does Ally finance people after cars have been returned to them?

Hopefully this isn't confusing - I am hoping to reduce our total car payments by 1/2 after discharge.

Thanks again for all the great help!

Lynn

[LSUTiger32]

Here is what we did. While our credit was still decent (650 range) we went and bought a new car. We did that knowing full well we were filing. We bought a very nice small SUV with payments well below $400....something we knew we could afford with no problem. For the second car, we had bought a $3,000 beater with cash from our tax refund about four months before that, so we were set.

We filed, re-affirmed the new car and dumped the albatross we had in the BK. The great thing was that it took the three or four months to come get it so I ran that thing ragged....we used it for everything. I was able to save months of wear and tear on the new car and the beater.

Our total payments went from a little over $1,000 a month on vehicles to under $400 at the time. Might not have been the best plan looking back, but it's what we did and it worked out OK. In your case, it would be keeping one. Not sure how Ally would feel about it but they could force you to re-affirm or give it back. That was what Ford made us do. We were hoping just ride-through but that part of the plan didn't work out!