Please talk me through this...

[TTATWORK]

Although I understand the sanity of surrendoring my car in Ch 7 (upside down several grand) I still hesitate. I'm scared of being w/out a car!! So please, I've posted about this before, and the answer must be so obvious 'cause I have not gotten replies, but still so much eludes me.

Something happened that has made me realize I should just let it go. In transferring my old Tom Cat from my home to my rental, the dang cat sprayed in my car, and now it smells like, well, cat pee. Nice. All of a sudden I am not so enchanted w/ my car.

Let me list the reasons why I think it is a good idea to keep it (despire the cat pee) 1) In three years, I'll own it, and it will be an asset 2) it is reliable 3) paying off the car in 3 years coincides w/ son going to college, so I'll have $500/month to contribute to that 5) afraid of not having a vehicle

OK, reasons it is good to let it go: 1) That's the whole idea of BK7 - getting rid of bad debt 2) It smells like cat pee 3) It is a 2004 model, it's getting old

OK, so I'm warming up to letting it go. Please, talk me through this. I don't plan on filing until May or June, and I am current w/ car payment now. When can I get a loan to get another car? After discharge, after filing, what? How soon before filing can I stop making payments? Please help, I just can't wrap my brain around this!!!

[Dollar Bill]

It may take to time to get an offer to buy a car. Some people on here say they have received numerous offers from Saturn and someone that will approve after a BK.

I am in the car business. No matter what car you get, you will be upside down, especially if it's new. If you buy used from a dealer you minimize the risk of being upside down. You will need to place a significant down payment on it in order to maintain its declining value through the years if you buy new.

If the car is very important, and you do not have someone that will allow you to use their spare, then I would keep it. Only if the payments will come easier after a BK. If it will keep you stressed and in a bind then give it back. Save a litle cash after filing and buy a nice used one.

[TTATWORK]

Oh, thank you thank you for the reply. Becoming upside down in another car by getting another high interest loan doesn't make sense to me, either. The payment is not such a stretch for me, either. So, if I decide to keep the car, should I try to "ride through" or re-affirm. By re-affirming, I am helping my credit along too, right?

[no_it_all]

One year out of BK I got a loan at 8 percent on a Toyota truck w/no down payment and 500 over invoice (Chase, my FICO was about 675)...let the car go and get a newer one after your BK. NEVER reaffirm...if you want to keep making payments go ahead and keep the car, they won't take it.

[Dollar Bill]

That sounds nice to me TTATWORK. Actually sounds amazing.

I'm not sure what to say about helping your credit out afterwards.

[my4devils]

We are currently in a very similar situation- going round n round over what to do about our van. What we are thinking (for now) is we are going to go to our state government auction and get a very reliable car for very cheap (2-3k) while eventually surrendering our van. Hopefully we can get a year or two out of it until our credit rebounds and we can get something newer (will never by spankin new again). Not sure how we are going to work out the timing of it all, as in when to buy the junker and when to get rid of the van. I may have to go carless for a few weeks. I just cant justify holding onto it w/all the negative equity. It isnt much- a high mileage 2003, with a deer dent outside, but no cat pee inside. Anyway- hope this helps you somewhat and good luck with your decision.

OOps wanted to add- if you reaffirm you are stuck with it no matter what, while if you ride through you can still walk away from it if need be. Our lawyer advised strongly against reaffirming and said as long as you pay during a ride through they will not repo.

[cj0203]

We stopped paying on the (broken) car we plan to discharge and went and got another more reliable car for $6k. It's not a huge payment, and not frivolous (it's a 2000 explorer). Our lawyer said if we were going to get a replacement car to do it BEFORE we filed if possible. So we did.

[Dollar Bill]

MY4Devils, is the government auction going to finance the junker?

Just curious because if you pay for it (2,3,4k) it will be an asset that the trustee will take and sell over again. Maybe $1500.

How are you planning on acquiring it?

[my4devils]

Dollar Bill- thats what I meant with the whole timing thing. We need to figure out when we can buy the car w/out the trustee taking it. We are using federal exemptions- which I think is like 3300 or so for a car- so we may be okay there if we go cheap enough. Otherwise I may have to give up the car right before discharge and then wait until after discharge to hit the auction.

[Dollar Bill]

If you figure it out please let me know.

[FreshLikeADaisy]

Hey, TTAWORK, I have no advice for you on the car thing, but unfortunately I have become a reluctant expert in cat pi$$.

There is this stuff that is rather expensive ($12 a bottle, $35 a gallon) that is known as pet odor exctractor. There are two or three really good brands; the one I use is called Get Serious (I think). The cheaper stuff has never worked for me, unfortunately. Basically, you buy a spray bottle ($1), heat this stuff up in the microwave for extra punch, pour it in the bottle and spray it all over the cat whiz until fairly saturated. Let it sit for a minute and then scrub/mop it up with a towel. It is none too pleasant a scent on its own, but it really does work, even on older stains. Once you get the "essence du chat" out of the fabric, then you can Febreeze to your heart's content.

I would strongly recommend this, especially since warmer weather is on the way... if you're not filing til May or June, and that just sits in the car in the warm sun... oooh, spend the $12!!! *cough* Good luck!!!

[TTATWORK]

Thanks for all of the replies...

It doesn't make sense to me to reaffirm or get a redemption loan at all, somehow I've come to my senses. I could buy a cheapy used car, drive it until my credit qualifies me for a newer car, and maybe the timing will be just right to hand the cheapy car off to my soon to be teenaged driver.
Daisey, thanks for the advice on the cat pee. I'll give that a try.
BTW - I was raised to never say "pee" - it was like a bad word in my house. All of the sudden here I am saying it, and feeling a little naughty!!

[bmcmull]

MY4Devils, is the government auction going to finance the junker?

Just curious because if you pay for it (2,3,4k) it will be an asset that the trustee will take and sell over again. Maybe $1500.

How are you planning on acquiring it?

Dollar Bill , I am in this buisness as well and I have alway's looked at the process of keeping a car vs letting it go. Why would someone pay $3.00 for a loaf of bread they could buy for $2.00 . If she is upside down and I am not sure by how much but I would bet the real numbers are greater than what they think, or have been told. LET IT GO, pay cash for something to get you through, with no car payment. You are exempt for an automobile in BK anyway. Financed or not. Keep it cheap and live to ride another day. Also reafirmation of debt does absolutely nothing to rebuild your credit. I am in finance, special finance at that, and I'll say it again re-affirmation of debt does nothing to rebuild the credit..Most times it is not even reported on the bureau....besides cat pee does not come out. You will forget the smell but anyone who gets in the car will certainly not.

[bmcmull]

One year out of BK I got a loan at 8 percent on a Toyota truck w/no down payment and 500 over invoice (Chase, my FICO was about 675)...let the car go and get a newer one after your BK. NEVER reaffirm...if you want to keep making payments go ahead and keep the car, they won't take it.

I have seen this before but not very often, you found a bank that did a system approval by computer probably, and did not catch the BK. Your bureau was probably cleaned up pretty good by the indication of your FICO score. AS for $500.00 over the invoice on the Truck you probably got smacked by the 4K in dealer incentives on that Toyota truck. People need to understand that it will not be so easy getting re-established so cheaply after BK. The expectations out there are that your going to be prime again and that is not the case for 99.5% of us, myself included and I am a special finance manager at a large dealership here in Dallas. Start cheap , re-establish, and learn what it is like to be debt free for a while. Life is great when you dont have all the other BS surrounding it.

[Dollar Bill]

Amen Bmcbull.....say It Again!