Here is my thinking, let me know your thoughts

[westchiburbs]

My wife and I will be filing soon. My attorney said it should not be a problem to keep our cars as their is no equity in them. Total payments for both is around $800/month.
I was thinking about turning my car in and buying another one after we file.
I want to lower my payments. Even with the high interest rate, I could get the payments lower.
Do you think it is that tough to get financing after a Ch7.
I dont want to turn in my car and get screwed by not getting financing.

[jessegirl]

If you are thinking about financing right after you file, nobody will give you a loan. You must be discharged. I already spoke with a delaer that I have dealt with for about 15 years now. The same saleman. He told me to wait until after discharge and then bring in the paper showing the discharge and he will apply to about 15 different banks and see who comes back with the best interest rate. He said some will come back with 28%, but would never put me in something like that. Needless to say, I would never go into something like that either.

[NoMoreRed]

722 Redemption on your car may be an option. Have you looked into it yet? In some cases it's good and others it's better to turn your car in or reaffirm. Of course a 722 Redemption loan will only workout if you don't have any accounts with US Bank that will be included in the BK since they fund the redemption loans.

In our case we were able to save over $12,000 over the life of the loan on our SUV. We owed $over $14,000 on it and we were able to redeem it at a fair market value of approx. $3,900. It's practically brand new and had less than 30,000 miles so it was well worth redeeming.

[Brighterdays]

When I was a new car sales manager our dealership dealt with 722. The negative is the interest rate. The positive is they need the cars book value to be close to the purchase amount. That limits the profit that the dealership can make. This cuts into the the profit and sometimes deters the dealership from offering certain "cherry" models. You might want to scout it out ahead of time and see what dealerships have to offer. It can't hurt to do your homework ahead of time. Make sure you have the auto checked out, because if it breaks down and gets repoed, your choices will be limited(if any) on your next vehicle. Buy from a reputable dealership!!

[AfraidOfBK]

When I was a new car sales manager our dealership dealt with 722. The negative is the interest rate. The positive is they need the cars book value to be close to the purchase amount. That limits the profit that the dealership can make. This cuts into the the profit and sometimes deters the dealership from offering certain "cherry" models. You might want to scout it out ahead of time and see what dealerships have to offer. It can't hurt to do your homework ahead of time. Make sure you have the auto checked out, because if it breaks down and gets repoed, your choices will be limited(if any) on your next vehicle. Buy from a reputable dealership!!

Brighter Days,
i have two vehicles i am interested in bringing down to book value to lower pmt. Are you saying that the closer i am to the actual purchase price, the better it is for me or the dealer?

I have a mazda 3 financed for about 28k (its a 2007 with 18k + miles on it we got it used)

i have a honda odyssey (it used to be m lease, then we purchased it) with about 18k miles and is also an 07. financed for 27k probably worth 23k.

How does my situation look from your perspective? Also, does a 722 depend on how long you've had the loan?
THNX!

[NOVA]

I have a question on this also - My current Car pmt is $ 640 and will be when we file. I will have that amount on the means test and also on my schedule J - is there any way for me to bring down the car payment during the BK process and still be able to file chapter 7? ( I'm pretty close to the Disosable income limit) so I wouldnt' be able to do it before or I'd be over the amount and thrown into Chap 13.

Any thoughts?
(sorry, if I'm highjacking this thread -don't mean to)

[babynurse31]

I'm in the same situation. I need the $600 car payment to keep my disposable income in the negative but then I'm upside down on my car. My lawyer advised me to check out 722 & plan to redeem or reaffirm and then if they don't work with us just turn the car in after discharge.

I'm applying for 722redemption today to see what they say!

[slam22]

Why don't you just let the two cars go and save yourself $800 a month. Buy two $1000 beater cars until you are on your feet again. When you are in a better situation then you can upgrade.

[Brighterdays]

Brighter Days,
i have two vehicles i am interested in bringing down to book value to lower pmt. Are you saying that the closer i am to the actual purchase price, the better it is for me or the dealer?

I have a mazda 3 financed for about 28k (its a 2007 with 18k + miles on it we got it used)
i have a honda odyssey (it used to be m lease, then we purchased it) with about 18k miles and is also an 07. financed for 27k probably worth 23k.
How does my situation look from your perspective? Also, does a 722 depend on how long you've had the loan?
THNX!

Now I am talking about getting a new/used car, not reaffirming your current cars:

The closer you are to book value the less negative equity you will have if you ever trade it in. the dealer would love to charge you as much as he can above book. You should be able to negotiate your vehicle below book(nada). The dealers use a black book, which is their auction book. its what a vehicle sells at auction for. that is the price you want.

When going in shopping for a car, don't think you have to get that car, just because your using 722 dont let them take advantage of you. I would talk to the people at 722 and see what your options are and don't even tell the dealership what you are doing until you have found a car and negotiated the best price. It has been 8 years since I have dealt with 722 so they may have changed a little.

[Brighterdays]

I'm in the same situation. I need the $600 car payment to keep my disposable income in the negative but then I'm upside down on my car. My lawyer advised me to check out 722 & plan to redeem or reaffirm and then if they don't work with us just turn the car in after discharge.

I'm applying for 722redemption today to see what they say!

When we dealt with 722 they didn't reaffirm, they just provided financing for a new/used car purchase. Not the car you currently have. I agree, a would let the cars go and start over. If you can afford it only finance it for a max of 36months, myabe 42. Remember, a car is just a means of transportation from point A to point B. Use this as a temporary means to the end, not the end product.

I hate saying this, but see what new cars they can do, like hyundai, kia, or better yet a ford focus/chevy ?? Don't expect too much as I doubt you will get the benz