refinancing autos b4 filing... good or bad idea???

[wendyfou]

i am NOT late on either of my truck pymts w/ them. i do NOT want to lose my trucks in the bk. but i am worried about making the pymts (which together total $1050) even after bk.

i have approached my credit union & honestly told them i am going to file & why (credit cards & medical bills, etc). i have told them all this & spoken to the manager. he agrees that we both want the same thing. they want their money, not the trucks. i want to pay them & keep the trucks.

they have a promotoion going on now for people to switch their auto loans (refinance)from any credit union / bank to my credit union for 2.something% interest. my rate is 6.something% and i asked that they give me the same deal they are giving customers from other credit unions and i have asked for lower payments (without pushing the payments out much farther because they ARE used trucks now and i don't want to be paying for them forever).

i am wondering if there is any downside to me signing a refinance agreement for my trucks (at a lower interest rate and a lower monthly payment) prior to filing for my ch 7. if i understand the means test correctly, it wont affect that that much at all - but i may be missing something. any advice would be appreciated.

[keepinitreal]

The only effect I can think of is if you're on the bubble for qualifying for a Chapter 7 and lowering your 2 truck payments would give you too much disposable income and push you into a 13. Not likely, but something to consider.

[tcreegan]

Hi wendyfou,

Curious, you are worried about the truck payments but seem attached to the trucks somehow. Are there good financial reasons to keep them?

Get the refi in place before the BK, then don't do a reaffirmation during the BK. Keep current on payments and insurance to keep the trucks.

Tom in Colo