Chapter 7 Bankruptcy

[MeLLE159]

Hello ALL
Im getting ready to discuss filing chapter 7 bankruptcy with my attorney this week, but I wanted to get some info from you guys who have been through it before. Currently I have a car loan with this company I hate and owe way more on the vehicle then its worth. I wantto buy a newer used car with better gas mileage before I file,but how do I do that? Do I just let them take the car before I buy the newer used car. IM in so much debt bankruptcy is my only option. PLEASE HELP!

[AngelinaCatHub]

Welcome Melle:

First, read all the "stickies" before the bk 7 forum. They will quickly bring you up to date and educate you fast.

Your question is common. It would be wise to just stop paying the car. Your credit is going to be trashed in bk anyway so expect this and after you can work your score up when you have your "new start". Take the payment monies and buy a good used car CASH and not on credit. New debt if frowned on right before your bk. Stop using any credit cards if you have not done so yet. NO cash advances. Time 90 days if you are able to between last use.

The process of the car being picked up will take about three month or more. There are many bargains for cars sitting in people yards or on side of road with For Sale signs. You can get a sweet deal from someone who cannot afford the extra car. Remember you are not the only one in distress. More are coming daily with all the hope and change we are getting. 'Hub

[keepmine]

I'd suggest you get reliable transportation prior to filing.
Nothing wrong with getting a reasonable car loan before you file. You'll more than likely be required to reaffirm the auto loan if you bought the car shortly before you filed but, it's not going to hurt your bk.

[MeLLE159]

The Company that got the car loan with sucks and they are not attempting to work with me at all. I'm meeting with my attorney on Thursday and hopefully he will give me some more info. I'm so happy I found this site... The thing is that I need a vehicle to get back an forth to work everyday and if I let the car go I'm going to lose my job. So the only other option is to quit paying and try and get a car prior to bankruptcy. So STRESSED!!!

[keepmine]

If, the car you have is reliable you may want to consider a 722 redemption.

https://www.722redemption.com

The interest rate will be high but, you are financing what the car is worth-the negative equity is stripped out.
I'll say again-nothing wrong with finacing a reliable ride prior to filing.
Buying a cheap used car for cash is a good financial move for someone who is handy and knows how to fix stuff. However, that doesn't describe me! I'd just not risk high repair bills.

[MeLLE159]

Yes the car I have is very reliable and is a decent car. I had no idea about this 722 redemption, but I will ask my attorney about that. Do you know of the rates they offer for financing? I just don't want to be paying more then I'm paying now. Also your bankruptcy has to be filed prior to applying for loan, am I correct?