Would you do a 722 if you were me?

[okiemom2008]

We bought a 2008 durango new in Oct 2007. We paid 30k for it. financed it
We owe 27k now. Our lawyer said we can do a 722 and get it down to kbb value of 10k at 24% interest. This is only if we want to keep it. The payments would go from 560 to 320 a month but we could probably pay it off within 6 months with it only be 10k.

Would you do it or just let it go and get another vehicle?

[krielly]

If what you are saying is true............this sounds like a no brainer...........

I'm not sure why you are even wondering what to do? Sorry, don't mean to sound insulting.

[okiemom2008]

If what you are saying is true............this sounds like a no brainer...........

I'm not sure why you are even wondering what to do? Sorry, don't mean to sound insulting.

I am wondering if I should do the 722 or just let the vehicle go andget another one that is less thank 10k.

Sorry my post was confusing

[ansky0007]

I am wondering if I should do the 722 or just let the vehicle go andget another one that is less thank 10k.

Sorry my post was confusing

Getting a loan for a new vehicle for $10k might be the problem and you will also not know how the replacement car was treated. If you treated it well and its working solid it might be a great solution for you. If you have cash then its a different story. 722 redemption works well if you cant get a loan on your own. My credit went from a 704 to 554 in one week after filing so no bank will help me.

[krielly]

If you can afford the payments, and it sounds like you can - based on the fact you indicated you could pay this amount off in 6 mos - then why not? You are keeping a 2007 vehicle, and cramming the value down to 10K.

That being said.......with an interest rate like 24%.....pay it off as fast as you can!!!!!!!!!!

If you buy another vehicle, you will be upside down on it from the minute you take it off the lot...........

[PoorGrammyinBK7]

kreilly is right about that - wish I had done that with one of ours.

[jack81]

what website or book does the bank use to determine a cars value? There are plenty of sites, NADA, Kellys Blue Book, Galvs, etc. I believe they use wholesale price too, correct?

[ansky0007]

Up To 115% NADA Trade-In Value

[okiemom2008]

If you can afford the payments, and it sounds like you can - based on the fact you indicated you could pay this amount off in 6 mos - then why not? You are keeping a 2007 vehicle, and cramming the value down to 10K.

That being said.......with an interest rate like 24%.....pay it off as fast as you can!!!!!!!!!!

If you buy another vehicle, you will be upside down on it from the minute you take it off the lot...........

Yes we can afford the payments but the whole point of bankruptcy to me is that we don't have payments...just to make life easier.

But basically the choices are
1. do 722 and get the durango back at 24% interest but pay it off in 6 months(total 10k)

2. buy a used pickup or car for around 5k and not have payments

[okiemom2008]

what website or book does the bank use to determine a cars value? There are plenty of sites, NADA, Kellys Blue Book, Galvs, etc. I believe they use wholesale price too, correct?

they used kbb for me. I was shocked to find out it is only worth 10k and I bought it for 30k a year ago!!

[krielly]

Don't forget also that this is a car you KNOW........vs a car you don't.

It's really up to you, but you DID ask for an opinion

[okiemom2008]

Don't forget also that this is a car you KNOW........vs a car you don't.

It's really up to you, but you DID ask for an opinion

That makes sense. Thanks!

[jeb]

OK - what is a 722? - Duh - jb

[justbroke]

OK - what is a 722? - Duh - jb

It's the part of the Bankruptcy Code which allows you to redeem an asset rather than reaffirm the existing contract, or surrendering the asset.

[PoorGrammyinBK7]

It's the part of the Bankruptcy Code which allows you to redeem an asset rather than reaffirm the existing contract, or surrendering the asset.

at the actual value, rather than what you owe.