Question about expsenses and more please...

[TTATWORK]

Hi All

I've read and read, but can't seem to figure a few things out. Any help is really appreciated.

I'm still not sure if I'm going to keep my car. I think I need the expense to keep my schedule I and J to reflect <$100. If I reaffirm, then revoke the reaffirmation, do I need to change my expense schedule?

regarding redemption loans -- if I don't reaffirm, but get a redemption loan, when/how does this get reflected in the expense schedule?

Thanks
teresa

[dp1969]

Not sure I'm understanding but we had to adjust our I & J to reflect that we would have just enough to reaffirm our car. Are you wanting to keep your car?

[TTATWORK]

I'm not really sure if I want to keep my car, so I'm interested in what the options are.

It may sound crazy, but I think I need the expense of the car payment to keep my less than $100 disposable income. So, I may want to reaffirm. I like the reaffirmation because it will help me build my credit history back up, the loan is getting to where I am finally earning some equity in the car, and I should have it paid off in 2.5 years, then it will be an asset! But, the thought of keeping this debt (I'm upside down right now) bothers me, too. So, I thought, how about if I reaffirm the debt (to keep my disposable income < $100), but cancel the reaffirmation, and get a redemption loan for the wholesale or KBB value? I'll still be paying a loan and building up my credit. I have not figured out yet if paying a higher interest rate on the KBB value will be less money/month than just making the regular car payment.

Oh, will my original lender negotiate a better deal with me in the reaffirmation agreement?

[dp1969]

Most likely your current lender will not negotiate a better deal with you (they will look at the BK) but never hurts to call and ask.
If your upside down after the BK, then I would consider a redemption loan. Bk should give you a "fresh start" and that's not "fresh" to me. But be weary of what "redemption loan" company you go through. Found this website http://www.722redemption.com/debtor_redemption.aspx. Funded by US Bank. Hopefully, you could find something locally. Ask your attorney if they have thoughts on this. For me, I LOVE my car and we are current in the payments but if we were "upside down" (it would be hard) but I would consider downsizing to a more affordable vehicle.