Need Another Car......BADDDDD

[tiredofdebt1]

Alright guys...as i told you before...i owe 8500 on my car....i plan on surrending it during BK....and wanted to get another one.....you all gave me advise and felt that i should surrender the car...and get another car before i file and reaffirm that car.......so i did that last night..or tried to do it....in order for the bank to finance me.....i need to get rid of the vehicle first...pay off or trade in.....it
s worth $1000. Can you believe that i owe 8500 for a car thats really worth 1000? Anyway.....i didn't know what to do...so i left..i didnt want to tell them that i was going to file BK and surrender it so therefore...i wouldnt have that loan....how did you guys do it? I am filing on the 15th.

[325Falcon]

I too am very upsidedown in a car. My plan is to let it go into the BK and get another after the BK. This way I am not rolling over any bad debt. I am sure I will have to bite the bullet with regards to APR after the BK but its better than keeping bad debt.

[keepmine]

Alright guys...as i told you before...i owe 8500 on my car....i plan on surrending it during BK....and wanted to get another one.....you all gave me advise and felt that i should surrender the car...and get another car before i file and reaffirm that car.......so i did that last night..or tried to do it....in order for the bank to finance me.....i need to get rid of the vehicle first...pay off or trade in.....it
s worth $1000. Can you believe that i owe 8500 for a car thats really worth 1000? Anyway.....i didn't know what to do...so i left..i didnt want to tell them that i was going to file BK and surrender it so therefore...i wouldnt have that loan....how did you guys do it? I am filing on the 15th.

Hard to know what to say without some facts. How large a loan were you trying to get, what's your takehome pay and what percent of net income would the auto loan payment be?
Also, you may have a better shot at financing through a dealer.

[tiredofdebt1]

Right...this was the Pence-Nissan dealer.....i have heard people on the forum receiving an interest rate of 12% after their 341 meeting. No set amount that applied for..i just wanted to see what could be offered for me.....i know i didn't want to tell them I was about to file BK....but i know that im filing on the 15th and my lawyer told me since im surrendering...dont make anymore payments...my sept payment was due on the 15th......i didnt pay yet.....im waiting until i file...i was hoping they wouldnt come pick it up until after my 341.....but they may request a lift of stay...because they are sooo dang on nasty...w/ my 24% interest rate

[keepmine]

How can you apply for a loan with no set amount of $$'s requested?
Once the bk is filed, you'll find it near impossible to get financing until you're discharged.
Sending a demand for payment violates the automatic stay so lenders will wait until discharge.

[Boscoe]

Why don't you keep the car, and either do a 'cram down' if you have had it for 2.5 years, or keep making the payments and DON'T reaffirm? That way, you keep your transportation but can walk away from the car at some later date?

You are too far upside down to trade this in. No way that will work. But keep it, file and go that route. Talk to you attorney.

[rrockinggramma]

ok, I hear your pain. Have had the same issue. But, did you know that with 722 redemption you can surrender your current vehicle and get another vehicle through them, while you are in BK. Of course the interest will be tough but it might be worth pursuing. Check out their website. Just google, 722 redemption.

Good luck!

[tiredofdebt1]

i think i might have to check out the 722 redemption...i just filled out an application w/ one of the websites provided online for bad credit......and there were a couple of offers....i didnt request a 20k loan or a set amount....they look at my credit and see what they can offer me....maybe you have great credit and can request a set amount....unlike myself with a 445 credit score...

[Boscoe]

tired - why are you getting rid of your car? Is it really old with lots of repairs upcoming? If it is running fine, why not keep it through the bk?

[tiredofdebt1]

yes.....both of my airbags are hanging out...i have front end damage...i have internal damages from an accident....the dealership stated i needed 6k of repairs..and laughed because he was like the car is pretty much totaled......that i should look at some on their lot.....it will not pass inspection..im driving around w/ an expired inspection sticker on my windshield.....8/07

[Boscoe]

Then definitely buy whatever you can before you file, reaffirm that vehicle and surrender this one and get that $8500 discharged.

Probably what everyone else was telling you.

[Lindsay]

I'd just get a real cheap one with cash that is under the exemption limit. We have a nice 1991 Grand Voyager minivan for sale for $500 and its actually a very good and reliable car for the money. It runs perfectly and its not too gnarly or rusty looking. It just has a little rust on the edge and a few scratches. So you can probably find decent deals in your area too. We have to get rid of it because I don't want to pay for insurance on it (I don't know how to drive and my husband drives our truck) and our town sent a nasty letter to either insure/register it or get rid of it.

I would never put 6K in repairs on a car worth 1K. After you put all that money in something else could go wrong. I'd just get a cheapie that runs pretty good for now.

We don't know if we will lose our truck in bankruptcy or not, so I may be in the same situation soon. We have positive equity in it and we don't really make enough to get a reaffirmation signed. So we're going to try to do a ride-through or borrow the money from my father to pay off the balance. But we don't know if the bank or trustee may seize it or not. If that happens, I'll just look for a $1000 cheap truck.

My husband is an auto technician and he says that people come in everyday and pay $1000 or more for repairs on cars not worth anything. He says that the same people come in with new problems soon after. One poor guy has spent $3000 in the last month trying to save an ancient truck with 280,000 miles on it. They gently suggested that it may not be worth fixing, but the guy wanted to keep it and had just spent $800 for brand new tires too.

[tiredofdebt1]

Right Boscoe......but i cant get financed unless the car is gone....do you tell them that you are filing bk...and doing a surrender on the vehicle? or do you keep your mouth shut and reaffirm later...so when they tell you the car has got to be paid off or either traded...then what do you tell them?

[Boscoe]

I would just keep paying on the current vehicle and don't say anything. And definitely do not reaffirm in your bk. Would not make sense.

Have you had this car for at least 2.5 years? And do you know the blue book value?

[CindyLou]

Capital One Blank Check does not require a trade in!! I know what you are talking about and yes most dealerships will required a trade in as will Roadloans. 1 person=1 vehicle. 2 people=2vehicle. In other words if you go in and you are married you can say, oh, that's my wife's car we are keeping that and if you have the income to support it then they may buy that story. But they won't buy, "I'm about to file BK" No can do. I would defininety go to Capital One and do the app for the Blank Check...if you qualilfy they will overnight you the check. It's pretty easy and their qualifications are pretty easy. Good luck and keep us posted.