Buying truck from the bank - help please!

[nerves]

We have a truck that is part of our secured debt for business loan. We met with our attorney this morning and he said that we may be able to work something out with the bank to purchase it with payments. What would be a reasonable offer? Using blue book values or something less? Has anyone had anything similar? I appreciate all the wisdom I have learned for all the postings on this sight. THANK YOU!!!!!

[backtoschool]

I am confused. Is this a business bankruptcy or a personal bankruptcy? Is the asset a business asset but you are filing personally? There are firms that will finance you during or post bankruptcy at high interest rates. Are you trying to get an upside down car's value reassessed prior to reaffirming or financing it? If that is the case, then the car financing company will determine a value, but generally you can get an idea by looking at kbb.com.

[nerves]

The truck was paid in full (cash transaction when purchased) and then used as collateral for our SBA loan. We will be closing the business soon and filing personal bk (business is an S Corp). I am hoping the rates won't be extremely bad. Our intent is to pay it off asap after we are discharged. The goal will be to pay off the truck within 18 months so we dont have that hanging over our head. Kelly BB is listing the value around $20,000. Should we be prepared to pay that or do you think we can pay less? My husband hit a deer last Nov so it will have a ding on the title since the damage was over $7000 (we had it fixed). I don't think a car dealer or auction would be able to sell it for Kelly BB. Thanks.

[backtoschool]

The truck was paid in full (cash transaction when purchased) and then used as collateral for our SBA loan. We will be closing the business soon and filing personal bk (business is an S Corp). I am hoping the rates won't be extremely bad. Our intent is to pay it off asap after we are discharged. The goal will be to pay off the truck within 18 months so we dont have that hanging over our head. Kelly BB is listing the value around $20,000. Should we be prepared to pay that or do you think we can pay less? My husband hit a deer last Nov so it will have a ding on the title since the damage was over $7000 (we had it fixed). I don't think a car dealer or auction would be able to sell it for Kelly BB. Thanks.

Your rate is going to be high, probably around 22% or so given the examples from others on this board.

Kbb values are for great condition, so your value will be lower. Be very careful that you pay close to market value for the car so that the trustee doesn't doesn't question the exempted part of the car, or question your "transferring" the car from your business to your personal property via the sale. Paying under market value for the car will be a red flag for the trustee.

[nerves]

Thank you so much! I am guessing it would be worth around $15000 due to the previous damage. Maybe we will ask a car dealer what they would sell it for. Thanks again.