Car in Bk questions

[iamwhoiam]

I have a car that i purchased about 4 months ago at one of those buy her pay here lots frankly i got screwed i owe about 16,000 on a car that is worth 6,000. I have read that i pretty much can not do a cram down because the loan is to new. Is this correct?

Also if i was to purchase a car with much better value and a decent interest rate and not include it in the bk can i give my upside down car back and would i have to pay on it still or does it become unsecured debt?

The car that i currently have has an immobolization device in it if i miss the payments. If i miss the payment they stop the car and i file the bankruptcy will have to turn my car back on or can they keep it off until i pay current on the balance, also while i am in the bk and making the payments to the trustee will they ever be able to use that device again (while in the bk) or will they be forbidden to use it?

[Pandora]

you're correct - you cannot do a cram down on the vehicle, however they can lower the interest rate to a more acceptable rate most times.

As to your other concern - I believe that surrendering a vehicle and the creation of a deficiency balance depends on whether you surrender it before or after you file.

If I was that upside down on a vehicle, I'd let them have the car back. Ouch. Are you filing pro-se or do you have an attorney? If you have an attorney, what do they recommend you do?

[StartingOver08]

This is your opportunity to get out of this subprime auto loan. If you surrender the car in BK then they can not come after you for the deficiency on that vehcile. Of course, if you stop payments and they repo the car before you file, you add that debt to your petition and discharge it along with all of your other debt.

Once you file and you are discharged, you will be able to get better terms on a vehicle loan. Search the threads here for ideas and strategies to replacing your vehcile. IMO, I would surrender during the BK as it will not show as a repo on your credit rather than have both the repo and the BK.