newbie needs advice on car

[taramaxed]

Been lurking for a long time. This forum is great!! We have made the hard decision to file for bankruptcy. We are unsure of what to do with our car. Our car is through a credit union and we also have a personal loan through the same union. We wanted to reaffirm but after reading through some threads it seems like credit unions want you to reaffirm all debts through them. Is this true? What started us in this mess is the personal loan with them. That is mainly what screwed us up. We want it gone. We have a 2002 Suzuki XL7 with 100k milles (runs beautifully though)on it that we paid 11k for. Its worth about 5K through kelly blue book. Our payments are $250/mo. Should we go for one of those redemption loans? How much do you think the payments would be for a car like this roughly? I know the interest rates are high but we need to keep this car. thank you so much in advance for any advice.

[debtmonster]

Been lurking for a long time. This forum is great!! We have made the hard decision to file for bankruptcy. We are unsure of what to do with our car. Our car is through a credit union and we also have a personal loan through the same union. We wanted to reaffirm but after reading through some threads it seems like credit unions want you to reaffirm all debts through them. Is this true? What started us in this mess is the personal loan with them. That is mainly what screwed us up. We want it gone. We have a 2002 Suzuki XL7 with 100k milles (runs beautifully though)on it that we paid 11k for. Its worth about 5K through kelly blue book. Our payments are $250/mo. Should we go for one of those redemption loans? How much do you think the payments would be for a car like this roughly? I know the interest rates are high but we need to keep this car. thank you so much in advance for any advice.

http://www.722redemption.com/debtor_redemption.aspx

That's WAY too upside down. Go for the redemption loan and see if they can strip off all of those thousands of negative equity. The bank will never want that thing back with all of those miles on it. They are most likely to settle with for the redemption loan. As many people have said on here, NEVER re-affirm any old debts. I know I'm not.

[taramaxed]

thank you so much I thought that is what I should do, but I was reading so many horror stories about the redemption loans and didn't know if it was a right move. Thank you for clarifying "upside down" for me. I have seen that term used alot and I thought it meant someone was behind on payments. I don't have a lawyer yet but was wondering if they typically charge more for doing a redemption loan or is this included in the price? I don't know if I can ask this.

[fltoo]

You said you paid 11,000 but you didn't say what the payoff amount is. Is the amount due still close to the amount paid?

Can't tell if your vehicle is "upside down" unless you know the payoff amount.

Upside down just means that the loan on an asset is greater than the value of the asset.

[taramaxed]

sorry, that makes sense. we owe about 10k on the car. KBB is worth about 5k. we bought it about 18 months ago. its wierd because we did a lot of research when we bought it and the KBB value was about 9k or something like that at the time we purchased it. i can't believe it dropped that much in one year.