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A little confused/perplexed on auto

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    A little confused/perplexed on auto

    My attorney tells us too keep paying auto loan(National Auto/GMAC), we have no problem with that. We owe $19,500, car is worth $11,500. We will not sign a reaffirmation agreement. We applied with 722redemption and was turned down, they said our DTI was to high. Our DTI will not be that high after BK, especially with all of our unsecured debt gone ($900 per month).

    If we do not reaffirm the auto, keep paying for now and then a year after discharge decided to let the car go back, will we be responsible for the deficiency of the loan?

    We wouldn't mind keeping the car but have 60 months left in a 78 month purchase@ $410 per month. Will lenders generally renegotiate the terms and amount of the loan during BK? The way I look at it, if we surrender the car they will probably auction or sale probably at wholesale.

    What should we do.
    6/30/2009 Filed Ch. 7
    10/06/2009 Discharged
    01/24/2011 Closed

    #2
    Auto lenders do not typically renegotiate or recast terms of an auto loan, under any circumstances.

    If I were in your shoes I would definitely let the vehicle go during and/or shortly after the BK - otherwise you are carrying thousands of dollars of unsecured debt through the BK...

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