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    #1

    reaffirming a vehicle

    I am really contemplating keeping the loan on my vehicle. My biggest hurdle is the monthly note and lack of equity. I bought the car a year ago zero down 1.9% interest 65k car. So you can imagine its a big burden to take on post BK.

    My wife doesn't want me to because it will be years and years before I'm back into a credit position to buy a luxury vehicle again which is true but my feeling is it is a big burden right now.. yet I do have some hold back because I do need a vehicle. I've read on BKF of people getting new loans post BK so that is an option but it isnt a guarantee and thats what worries me. My vehicle credit is flawless. 10 or so loans over the last 10 years, perfect payment history on them all, and during some times I would have three loans at the same period of time..

    so to me, if they go off this it would be an issue of getting into a basic car for now and saving that money each month.. I was really thinking of just buying a beater to get by for 6 months or so, but my question with all this is

    if I don't reaffirm the loan and stopped payments when do they get the car back? when I file, at 341 or discharge?

    thanks
    Tags: None
    #2
    You don't necessarily have to reaffirm a vehicle to keep it in a Chap 7, as long as you can continue to make payments. Only a few lenders will repossess a vehicle because of BK while payments are current. I believe Ford is one of them.

    If a lender does repo, they will have to wait for your discharge or file for relief from automatic stay. Most wait.

    You are smart to consider replacing your car with a less expensive one. You should consider doing that before you file BK. Many people get car loans soon after BK, but you will get better terms before you fie. Don't do anything without consulting with a BK lawyer first. You may need the higher payment to pass the means test.
    LadyInTheRed is in the black!
    Filed Chap 13 April 2010. Discharged May 2015.
    $143,000 in debt discharged for $36,500, including attorneys fees. Money well spent!

    Comment

      #3
      interesting..

      I figured getting into a vehicle loan weeks before filing would be bad.

      I will talk to my attorney and see what he says about this, maybe I will go car shopping this weekend, fun times ahead.... not.. lol

      Comment

        #4
        Buying a car before filing BK is pretty common. Some attorneys will not directly say to finance a car right before filing BK. So, rather than asking if it is okay, ask what the consequences would be.
        LadyInTheRed is in the black!
        Filed Chap 13 April 2010. Discharged May 2015.
        $143,000 in debt discharged for $36,500, including attorneys fees. Money well spent!

        Comment

          #5
          Originally posted by LadyInTheRed View Post
          Buying a car before filing BK is pretty common. Some attorneys will not directly say to finance a car right before filing BK. So, rather than asking if it is okay, ask what the consequences would be.
          got it.. thanks

          Comment

            #6
            Dis, I saw in another thread that you have equity in your house but are late on that loan. I would let the car go, get a new, economical vehicle, and work on the mortgage.

            Why is your spouse concerned with a 65k luxury car? Y'all are behind on your mortgage and bankrupt. Forrest for the trees.

            I think you are on the right track in thinking it will be a burden.
            Chapter 7, above median, no asset. Discharged with no UST involvement.

            Comment

              #7
              Originally posted by TXskyblue View Post
              Dis, I saw in another thread that you have equity in your house but are late on that loan. I would let the car go, get a new, economical vehicle, and work on the mortgage.

              Why is your spouse concerned with a 65k luxury car? Y'all are behind on your mortgage and bankrupt. Forrest for the trees.

              I think you are on the right track in thinking it will be a burden.
              The mortgage was more hypothetical.. i'm paid through on the mortgage but my question was more if I decided or if I should not even worry about making the Oct payment.. if that non-payment won't have to be caught up later.. sounds like I should keep current on that and any exempt property I want to keep.. correct?

              Comment

                #8
                Yes, you are correct. The monthly payments are still due. No skipping payments for things you will keep. You want to be current.

                If you are not going to keep the vehicle, stop paying. You'll get a few months of use out of it, payment-free, until they come get it. Probably best to never leave any personal items in it.
                Chapter 7, above median, no asset. Discharged with no UST involvement.

                Comment

                  #9
                  I will probably try to schedule a pick up because the only time they would be successful in a repo is while I'm grocery shopping and it would suck to come out with a full load of groceries and the car be gone lol..

                  My house is behind a locked gate which as I understand is illegal for them to cross. Which explains why the sheriff serving papers and collectors never come to my door. They just honk to see if I'm home lol.

                  At work I'm behind a locked gate as well so no luck there either.

                  wonder what happens if they can never repo the car

                  I've pretty much decided I am going to keep my other vehicle which has a loan through my main bank currently which should mean I will stay in good standing with my current bank. I only owe 16k on it which is pretty much its street value but its a low payment and I wouldn't be able to do any better if I attempted to go get another loan on a used vehicle right now. It's on a 4% rate for a few more years.
                  Last edited by Dis0314; 11-12-2014, 06:39 AM.

                  Comment

                    #10
                    Originally posted by Dis0314 View Post

                    wonder what happens if they can never repo the car
                    Years ago, I had a friend who did repos occasionally. I went with him one time. His respect for legal and physical barriers is not something I would rely on. He was very much so a "the end justifies the means" type of person.

                    Originally posted by Dis0314 View Post

                    I've pretty much decided I am going to keep my other vehicle which has a loan through my main bank currently which should mean I will stay in good standing with my current bank. I only owe 16k on it which is pretty much its street value but its a low payment and I wouldn't be able to do any better if I attempted to go get another loan on a used vehicle right now. It's on a 4% rate for a few more years.
                    Sounds reasonable to me.
                    Chapter 7, above median, no asset. Discharged with no UST involvement.

                    Comment

                      #11
                      Originally posted by Dis0314 View Post
                      wonder what happens if they can never repo the car
                      If they are not as tenacious as TXskyblue's friend, I believe they go to court and get an order ordering you to turn over the car. Then they send the Sherriff to make sure you comply.
                      LadyInTheRed is in the black!
                      Filed Chap 13 April 2010. Discharged May 2015.
                      $143,000 in debt discharged for $36,500, including attorneys fees. Money well spent!

                      Comment

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