6K left on car

[Carloscda]

In chapt 7, Is there such a thing as exempting that amount so I don't have to pay anything?

[justbroke]

No. If you owe someone money, and the debt is secured by property (such as your car), then you need to pay it.

[BobMango]

After rereading the question, it sounds like you are trying to dismiss the loan on a secured asset. As Justbroke said, no can do.

[Carloscda]

I should rephrase this...

Will the attorney be able to renegotiate a lower payment?
I was paying $430mo.

[justbroke]

Will the attorney be able to renegotiate a lower payment? I was paying $430mo.

Not likely. The only thing you could do is a redemption. A redemption works by paying the creditor the current market value of the property. However, if that lender loaned you money to actually purchase the car, it falls under the so-called 910-day rule and you won't be able to reduce the value of the loan.

Of course, you can always "negotiate" with the creditor... but bankruptcy attorneys don't normally do that except for Redemption or Reaffirmation agreements.

In any event, what is the car worth?

[StartingOver08]

You can try renegotiating your loan with the BK dept. I did that with one of my car loans and was able to reduce the payment $100/mth. It was with a CU.

The other lender on my other vehicle would not negotiate at all - it was a take it or leave it proposition. I told them to take it and ....well you know the rest.

It is worth a try. BTW, justbroke is right, the attorney does not do this for you. This is one of the things you get to do. If the lender agrees, make sure they put it in writing in a reaffirmation agreement. The only downside is, you have to pay it all the way then because if you decide to surrender after the BK, you will owe the entire amount. So this is a viable option if all you owe is $6k, not so much if you owe a lot and the car is upside down.

[justbroke]

I told them to take it and ....well you know the rest.

You know there's a Bankruptcy term for that, don't you?

It's called... Eat Steel.

I here that they don't like to eat steel that much. Bad for their pocketbook or something like that.

[StartingOver08]

You know there's a Bankruptcy term for that, don't you?

It's called... Eat Steel.

I here that they don't like to eat steel that much. Bad for their pocketbook or something like that.

Ha, ha I like that

[Carloscda]

It's an 03 Accord with Honda Finance, the car is worth $6500 & I owe alittle over 6k.

I was in a 13 converted to 7.

[StartingOver08]

Sounds like a good car with a smallish balance owed. See what you can do with the BK dept at Honda Finance. If you can not renegotiate it, you can surrender as long as you do it before your discharge. The issue then changes to when and how you will get another vehicle. Of course, if the car is not worth it due to condition that is something you need to determine before you start to negotiate with Honda. They may not work with you, but it is worth trying.

[Carloscda]

I'm defiantly keeping the car it's in perfect condition, just have to do the normal maintenance.

My 341 is Jan 4th so I guess we'll see what can be done?