Hi I am about 130 days behind on my car payment and they are seeking to reposses it. I just got a new job but cant afford the payment because of the high intrest. The car is in the garage and chase auto finance threated to charge the car off next week if i cant make the payment. I wanted to file chapter 13 bk. Is it too late or do i still have time to file?
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Originally posted by noreaga2001 View PostHi I am about 130 days behind on my car payment and they are seeking to reposses it. I just got a new job but cant afford the payment because of the high intrest. The car is in the garage and chase auto finance threated to charge the car off next week if i cant make the payment. I wanted to file chapter 13 bk. Is it too late or do i still have time to file?
However you need to think long and hard about this. You stated you can't afford the payment because of the interest..be careful about continuing to try and pay for a car you can't afford.Filed Chapter 13 02/2006 - Confirmed 05/2006 - Discharged 09/2011
I'm not an attorney. My replies are merely suggestions or observations, not legal advice. As always, consult with an attorney before making any decisions.
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We have a car with a high car payment that we owe about $7k more than it's actually worth. When setting up to file ch 13 our attorney advised us to just surrender the car and get a new cheaper one. This would (in theory) allow for plan to be approved easier as it shows our budget would not be so tight, and help get us back on our feet without being so upside down on a car.
We really love our car so I've had to really comes to terms with the fact that it's just a car. Not a status symbol, not a necessity of life, just a vehicle to get us from point a to point b, and it's not forever.Filing 7/30/10, 60 month plan, 0% to unsecured creditors
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17% is really high for the interest rate. If they do repo the car then you have 30 days to get it back. You will need to pay all late fees, and missed payments, repo fees and etc. I know you put a lot of money down on the car, but sometimes if you can't afford it now then it is better to walk away then trying to save the car.
When my car was repo'ed I tried everything to save the car prior to losing it. It was just not going to happen though and walking away was the best thing I could have done. Now when I do buy my next car I have learned my lesson on higher interest rates. I will never buy another vehicle with a higher interest rate.Chapter 7 filed on 4/23/2010
341 meeting on 5/28/2010
Discharged on 8/19/2010
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Well the thing is that my girlfriends car will be paid off at the end of the year, that will give us the extra cash we need to cover my car payment. We just were behind on alot of bills from moving and things like that. After tax time we will be ok especially because her car will be paid off. I am going to go forward with the chapter 13 because i eventually want to make it a track car.
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You can file chapter 13, and if you purchased the car more than 910 days ago you can attempt to cram down and bifurcate the loan, paying only the fair market value of it and a reduced interest rate in the plan. That will also stop the repo. Of course, that is a very simplistic and incomplete explanation, but that's the gist of it.
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In other words, you now owe basically what the car is worth and your only other debt is around $7200? I don't think bankruptcy is a very good option for you. You may just have to give up the car and consider it a learning experience. Next time you have $12k to put towards a car, buy a $12k car in cash, you never know what the future holds...I can almost guarantee that you will regret filing a ch.13 to save a car that has no equity.Filed Chapter 13 on 2-28-10. 341 completed 4/14/10. Confirmed 5/14/10. Lien strip granted 2/2/11
0% payback to unsecured creditors, 56 payments down, 4 to go....
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