Car questions

[123ABC]

I am filing my Ch 7 next tuesday. I have a 2004 Ford Explorer that I owe about 6800k on. My payment is 575.00/month and it is killing me! I am 3 months behind on this loan and have absolutly no way to get caught up. I only have 8 months left to pay. The loan is with a credit union that I have no other accounts.

Has anybody every heard of a credit union modifying a loan during BK. I am not going to be able to hang on to this car if i have to get caught up.

Also this is my only means of transportation. there are no bus lines where i live and i have to get to work everyday. If i lose this car how do i get a new one?

Thanks.

[Strapped4Csh]

We've been looking at this as well. From what I can gather, you could "cram down" the loan (get the loan to match the value of the car). Your other option would be to use 722 redemption funding to reaffirm the vehicle (there are plenty of posts about that here). Then you could likely drag the loan out for a bit longer.

I presume that you haven't been paying your credit cards for a while? Most people here have stopped paying their cards to save their money for the expenses of filing (and catching up on their payments to secured creditors). If that's an option, and you can delay filing for a bit to do that, you may want to look at that.

[123ABC]

Actually I have not payed any of my cards since Feb 2007 when I lost my job. I took a 30k pay cut so I am not able to pay them. Honestly this BK does not free up any money for me at all. All it is doing is stopping the lawsuits and judgements. I am working on getting my mortgage modified which will free up some money but that wont happen till after the BK. I can not be with out a car for even 1 day...

[LuciluS]

I would ask my Attorney first. I've heard where some Attorneys or Trustees will cramdown the car loan. If he says no, ask him about the Trustee requiring the cramdown.

If he/she says No on Trustee, you handle it. I would call the loan company. Explain your financial situation, but don't tell them you are filing Bankruptcy, and ask them if they will modify your loan.

I would really push the Attorney to request a Cramdown.

Addt'l infoOopps, I think cramdowns maybe only for Chapter 13 filers. Google your District/State & add cramdown auto/vehicle/car in Chapter 7 Bankrupty.