Question what is re-afirmation of a car loan? help...

[seamoonil]

I have a kia spectra 08 I bought it in april 08.

I believe I have $16000 left to pay.

I have never miss a payment($280.85 monthly.)

I bought it at car pros kia tacoma dealership

Financing with Qualstar Credit Union, WA

6.4% fix.

My income is $1000 I work part-time and I go to school full-time and I use my federal loans and my grants to help me with other bills.

(I used to survive fine until the credit cards got out of control.)

I want to keep my car; Do you think they would let me keep my car when I got discharged.

By the information that I gave you above what's your opinion?

PS. I always use federal loans to help with the bills, I need a lot of time to study; I am a slow learner.

[StartingOver08]

Based on your actual income, $1000/mth, you can not afford to keep this car. If you do decide to file BK, take a good long look at all of your expenses and dump all of your expenses. Buy a car post BK cash (a $500 beater) until you graduate and get a full time job. Keeping a $16000 expense when you only make $1000/mth is a receipe for disaster after your BK.

[OhioFiler]

I have a kia spectra 08 I bought it in april 08.

I believe I have $16000 left to pay.

I have never miss a payment($280.85 monthly.)

I bought it at car pros kia tacoma dealership

Financing with Qualstar Credit Union, WA

6.4% fix.

My income is $1000 I work part-time and I go to school full-time and I use my federal loans and my grants to help me with other bills.

(I used to survive fine until the credit cards got out of control.)

I want to keep my car; Do you think they would let me keep my car when I got discharged.

By the information that I gave you above what's your opinion?

PS. I always use federal loans to help with the bills, I need a lot of time to study; I am a slow learner.

You are a slow learner regarding accumulating non-dischargable debt. You never survived fine until the credit cards got out of control. You have always lived on borrowed funds, either student loans or credit cards.

Dump the car and walk to the university.

[seamoonil]

do I have a choice?

Based on your actual income, $1000/mth, you can not afford to keep this car. If you do decide to file BK, take a good long look at all of your expenses and dump all of your expenses. Buy a car post BK cash (a $500 beater) until you graduate and get a full time job. Keeping a $16000 expense when you only make $1000/mth is a receipe for disaster after your BK.

"Keeping a $16000 expense when you only make $1000/mth is a receipe for disaster after your BK"

what do you mean with disaster? what kind of disaster?

do I have a choice in keeping the car?

[flyinbroke]

A smart lawyer won't let you reaffirm. That is too large a payment for someone making 1K a month with no other income that is not more debt. You may need to start working and ease up on S/Ls...you are stuck with those as they are not dischargeable unless there is extreme hardship. I hear that is nearly impossible to prove.

By disaster, we mean this: You may very well find yourself exactly where you started, in debt up to your eyeballs with no way out since you used your BK already. Can't file a second chapter 7 for 8 (?) years. A used Kia is only a few thousand.

[HakunaMatata]

Yes, you have choice. You can reaffirm, surrender (the vehicle and your personal liability), or you may be able to "ride-through" (retain vehicle by staying current on payments without personal liability) if your lender is receptive to such.

You likely haven't missed a payment because you've been relying on credit cards and student loans to fund basic expenses. BK eliminates your access to credit cards and there are many who will warn you of the long term costs of student loans.

If you reaffirm, you're recommitting personal liability. If you find yourself in a situation where you're unable to make loan payments, your vehicle will be repossessed and you will be responsible for the deficiency.

[seamoonil]

Yes, you have choice. You can reaffirm, surrender (the vehicle and your personal liability), or you may be able to "ride-through" (retain vehicle by staying current on payments without personal liability) if your lender is receptive to such.

You likely haven't missed a payment because you've been relying on credit cards and student loans to fund basic expenses. BK eliminates your access to credit cards and there are many who will warn you of the long term costs of student loans.

If you reaffirm, you're recommitting personal liability. If you find yourself in a situation where you're unable to make loan payments, your vehicle will be repossessed and you will be responsible for the deficiency.

the reaffirmation will keep the the same rates 6.4% or they could raise the monthly payments making harder for me to keep it?

[StartingOver08]

the reaffirmation will keep the the same rates 6.4% or they could raise the monthly payments making harder for me to keep it?

It doesn't matter. You can't afford the payment on your income. You need to dump the car if you are going to ever recover from your debt. The S/L's are with you until you pay them off as they are not dischargeable. Don't make the same mistake with your car.

[flyinbroke]

It is said that car expenses should never be more than 20 percent of income. This includes payment, insurance, gas, maintenance. Your payment alone is nearly 30 percent of your income. This is not an affordable option.

[NoMoreCards]

I agree with other posters above, dump the car while you can.

Having a car payment that high, and the full coverage insurance that goes along with it are way too much money for someone in your income bracket to pay. Because just the car payment and insurance will equal half your pay each month.

Buy a beater car that is in reliable (although maybe not pretty) condition. You can put basic insurance on it and not have that payment every single month for the next few years. WAY cheaper in the long run!!

Although your student loans are helping you right now, they WILL have to be paid and will be painful when that time comes. No point in adding to the amount you have to get on loans for a car payment.

[seamoonil]

Yes, you have choice. You can reaffirm, surrender (the vehicle and your personal liability), or you may be able to "ride-through" (retain vehicle by staying current on payments without personal liability) if your lender is receptive to such.

You likely haven't missed a payment because you've been relying on credit cards and student loans to fund basic expenses. BK eliminates your access to credit cards and there are many who will warn you of the long term costs of student loans.

If you reaffirm, you're recommitting personal liability. If you find yourself in a situation where you're unable to make loan payments, your vehicle will be repossessed and you will be responsible for the deficiency.

what about redemption? what is that?

Do you see any possibility on my case?