E-Loan sold car loan...........

[my4devils]

So I get in the mail today from E-Loan that my car loan has been sold to CitiFiniancial Auto as of Feb 1st and all business must now be handled through them. i have been with Eloan for 2 years and have always paid on time- I have paid electronially from the beginning. I know this is common practice but giving the timing of it I am a little suspicious. This was my first month of not paying anything and we are filing the beginning of March. Is this going to present any problems for us?

Wanted to add: We will be keeping payments current and turning the vehicle in when the BK is discharged.

[Minnymouth]

If you are turning the auto back in WHY are you still making payments on it???

If you are including this in your bankruptcy, there is no reason to make any more payments on it... they will be discharged in BK.

In your BK petition just be sure to list both companies (E-loan and Citifinancial Auto so that everything gets discharged.

Take the money you would put out in auto payments and pay your attorney, or other things.....(utilities, groceries, clothese, insurance, etc)

Keep us posted.

[my4devils]

Thanks Minny for your response. We are still paying on it b/c we are afraid of it being repo'ed before we have found something to replace it. Our lawyer recommended we keep paying on it too since a repo is worse in the long run then turning it in. We are a family of 6 and my husband's SUV wont fit us all so we need some sort of transportation. We are planning on buying a junker 4-5k range but it will take us a few months to save that up. Does that make any sense??

[FreshLikeADaisy]

My4, a repo is more hassle, sure, but when it happens in bk it does not appear on your credit bureau: every bk'd acct should be listed IIB (included in bankruptcy) when you check your credit reports, including the car loan.

Run this by your atty, but if you state your intent to surrender the vehicle in your bk they will want the car back prior to your discharge. If you want to reaffirm and keep the car, you have to be current with the pmts. What other people have done is to continue to pay the loan, say they want to reaffirm (keep the car post-bk) and then "change their minds" later, right before discharge. This tends to give you more time with the vehicle because the car co. doesn't want it back nearly as much as they want the $$$. While this strategy may not allow you to keep your vehicle all the way through discharge, it may give you some addl time. If you say upfront you intend to surrender, they will want you to do just that: surrender.

In any case, you can change your mind on the intention to surrender and any reaffirmation you sign (I think it's 30 days on the reaff but I'm not sure, maybe someone else can correct me if I'm wrong on that) so you still have some time to make up your mind how you want to deal with the situation.

Then again, you may need that money to save for the new car... so you pretty much have to decide which you want more, the $$$ from the car payment or to keep the car a few more weeks. Also, if you're not upside down on it and it's already what you really need, you may want to consider keeping the car, and reaffirming for real. But that's up to you. Good luck!!!