vehicle question

[floridian]

i have a relatively new toyota truck, that is worth about 18k.... i owe about 29k on it, due to some clever trading...

can bk change the terms to get rid of the upside down part? if so, would it require a 13? i thought about getting one of the fords and chryslers that are going to be cheep and letting the toyota go back...

im sure a trustee would have a fit if i did that... you know, there was a time in my life, that thinking this way would be out of my nature... however, im looking around me and seeing that nice guys really do finish last...

[Ifonly]

I have a Toyota Sienna that I owe almost $39K on and is worth $29K...it has to go back in the 13 not only because of the values but because of the purchase date? Purchased last June when I was still gainfully employed.

[StartingOver08]

If you have had the vehicle for 910 days or more then you can do a cram down with the loan.

Otherwise it is best to surrender given the huge amount of debt over value.

[catleg]

you want to surrender it in BK, but you still want to maximize your car ownership and operation expense for budgeting. In other words you'd probably want to line up the replacement pre-BK. just stop paying on the toyota and let them come get it.

[floridian]

. In other words you'd probably want to line up the replacement pre-BK. just stop paying on the toyota and let them come get it.

which brings up an interesting point.. my neighbor let his vehicle go in a bk and he had to settle for some used junk, as no one would finance him after a repo...

i thought about letting the toyota go on a ride-through type of deal and maybe the trustee would let me keep my motorcycle as i put more miles on it than the truck...then, somewhere down the road, they could have the truck back if they wanted it...

however, i guess that if i was forced into a 13, they would strip me down so far that i couldnt make the payments anyway.

oh well, desparation makes one come up with all kind of impractical solutions....

probably my best hope, is that the bk law gets modified by congress... fat chance! i see, that one of the key architecs of the 05 law, is pushing to save the banks..

[floridian]

I have a Toyota Sienna that I owe almost $39K on and is worth $29K...it has to go back in the 13 not only because of the values but because of the purchase date? Purchased last June when I was still gainfully employed.

what are you going to do for transportation?

im not sure how that works, would i have to give back my truck due to a recent purchase?

[Ifonly]

what are you going to do for transportation?

im not sure how that works, would i have to give back my truck due to a recent purchase?

I'm not quite clear on this yet myself! LOL My attorney said something about me getting a car allowance as part of my monthly expenses as you can not survive in this area without a car. One of those things that I'm trying not to worry about it - just taking it as it comes....

[UhOh]

Cars are always funny in a BK. They don't want you to have an expensive luxury car and I've read where getting one just prior to BK filing has caused the case to be dismissed. Yet as I prepared to file, my lawyers said get a new car on a purchase before you file. You might want to wait 30 days but then let the old lease default in BK and drive your new car. As long as that new car is "reasonable".

Turns out my not paying bills and high debt load made it impossible to get a new car loan before my filing. Heck most even asked why I need a car with a lease still a year to go.

In the end I am going to try and keep my current lease and hope I can get credit next year when it expires. I was planning on the "ride through" that I read about but it seems iffy now. The lease company wants me to sign a reaffirmation. Even my lawyer sent it to me and said sign this but know then you are on the hook for it no matter what. So it seems a ride-through is a nice idea but really doesn't exist for me. I either turn it in or reaffirm. I have 30 days to decide.

[OhioFiler]

Cars are always funny in a BK. They don't want you to have an expensive luxury car and I've read where getting one just prior to BK filing has caused the case to be dismissed. Yet as I prepared to file, my lawyers said get a new car on a purchase before you file. You might want to wait 30 days but then let the old lease default in BK and drive your new car. As long as that new car is "reasonable".

Turns out my not paying bills and high debt load made it impossible to get a new car loan before my filing. Heck most even asked why I need a car with a lease still a year to go.

In the end I am going to try and keep my current lease and hope I can get credit next year when it expires. I was planning on the "ride through" that I read about but it seems iffy now. The lease company wants me to sign a reaffirmation. Even my lawyer sent it to me and said sign this but know then you are on the hook for it no matter what. So it seems a ride-through is a nice idea but really doesn't exist for me. I either turn it in or reaffirm. I have 30 days to decide.

Or just don't sign the reaffirmation agreement and see what happens. At least with that choice you have the chance to keep the car so long as you continue to pay for it or walk away if you find something else you like at a price you can afford.

[floridian]

i wonder if toyota is aggresive about recovering deficits?

[OhioFiler]

i wonder if toyota is aggresive about recovering deficits?

There is no deficit after you are discharged unless you reaffirm then stop making payments.

[floridian]

i was just thinking like a hoodlum for a minute... a car company here is advertizing new 12000 buck pick-up trucks.... if my tainted credit would hold up, i could get one of those... nah... just a fleeting thought..

[catleg]

you'd be surprised. i was able to get approved back in November with a credit score around 580. i was just starting to stop paying credit cards but had not too many lates but just massive debt. if you go to one of the car dealers that can put your app in the computer and it shops the loan around to like 15 different banks you can possibly get financed. the rate may be 15%. it's the choice of paying all that interest (though you could potentially refinance post-BK perhaps) or just hanging onto the toyota. might not be a bad idea to hang onto the toyota, but once you bk then you're really stuck with the deficiency (especially if you wreck it or it gets stolen and the insurance doesn't cover it).