What can I do

[shortyg]

I have an auto loan for a car I am upside down on, I was from the moment I bought it but had little options at the time. Last week it starting having transmission issues....long story short...I need a new transmission. I cannot afford it nor would it be worth putting the money into a car that is worth less than the cost of the repairs. So Im looking a filing ch. 7 and would obviously surrender the car, but am wondering if it maters that its not exactly driveable?

I also have a secured credit card that I've had for the past year-my only open credit card. I have a balance on it but has had all on time payments, which is very rare on my credit report, I've been btrying to get better about it. I want to keep it through the bankruptcy (as well as the history on it) can I do that??

[newbie2]

Shorty, don't worry about the car. If you want to give it up, do so. It doesn't matter if it needs repair or not. (Most used autos do need repair at any given time, even major repairs)

As far as the secured credit card: You have to list all debts in your bankruptcy petition. Most likely the credit card issuer will cancel it. There is nothing you can do about that. I don't think there is an exception to wholly secured cards (by "wholly secured" I mean those cards in which you begin the account with your own funds and they are used as the guaranty of the amount you charge)

[dspii]

You only mention 2 debts, if those are the only 2 debts you would discharge in bk, I'm not sure, for the long-term, that bk is the answer. If there are other debts, the car and loan will be gone and don't worry about the transmission, it's included. As for the secured card and your credit rating....in the dumps, the BK filing does this.

[shortyg]

No those are not my only debts...I wish. There is a reason I'm considering filing but those were the only things I had questions on.

If I paid off the card to a zero balance, do I still have to include it since its not considered a debt then?

[blessed]

If you pay off a card with more than a $600 (it's 600 in most states) balance it will be considered a preferential payment and it will make things messy. Also, even if it's only $100 and you pay it, most likely the CC company will find out about the bk and close your account anyway, even if you have perfect history with them. When you opened that line of credit there was probably fine print saying you don't qualify if you file bk so they have every right to stop doing business with you.

I'm saying you'd be wasting every single penny you give a CC company once you decide to file, it won't do you any good.