Is It Too Late

[noreaga2001]

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?

[noreaga2001]

Btw, when I bought the car it was 23000, i put down 12000 and made a total of 8 payments before i lost my job. The intrest was high so it says that i still owe 17000 but its really only about 9000. Any feedback would help alot

[mrskal]

How high was the rate? You put a lot of money down. That 17K probably also includes late fees etc...but that is what you really owe, not 9K.

[noreaga2001]

I think the intrest rate was like 17% I cant find the papers right now , but yes i put alot of money down thats why im trying my best to keep it, do you think that I have a case or is the car to much or is it too late to file?

[mrskal]

Hopefully someone else will help, I am not doing a 13, so I am not sure.

[newbie2]

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?

Filing for bankruptcy puts the automatic stay in place immediately. (It would put a halt to the repossession.) You could then have the arrears for the car put in to the plan.

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.

[ylime]

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.

[Exployer1234]

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.

[noreaga2001]

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.

[tigergem]

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.

[mrskal]

Are you only doing a Ch13 for this car? You dont mention any other debt? What is the car even worth now?

[noreaga2001]

I have a few credit cards that total about 3000 dollars plust a medical bill that is 4200, the car is now worth 18,000

[noreaga2001]

Correction the car is worth 17,400

[Rozi]

I am in the same situtation that you are in. I still owe 26k on a 2004 car and my payments are 598.00. Due to be paid off in 3 years but the payments are too much for me. About to file chapter 13 so I can keep the car. All my other bills are small...

[momofthree]

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.