Talk about upside down!!

[teresa]

Wow. Just looked up KBB for my autos -- husbands rig, owe 23219.00, KBB says it's worth 8000.00. My rig, owe 24076, worth 13000.00. 26K upside down. 48-60 months left on loans for both.
Don't know if I'm going to be able to go Ch7 or Ch13. If I wanted to keep both rigs, what would I have to do?
thanks

[keepmine]

If I wanted to keep both rigs, what would I have to do?

Keep making the payments.

[teresa]

looks like that is the way to go. Don't know why I'm so insistant on keeping the rigs...

[SinkingFast]

looks like that is the way to go. Don't know why I'm so insistant on keeping the rigs...

Sometimes you just gotta get over it and move on.

Like one attny told me about selling my truck, "There will be other trucks down the road. Get thru this and then you can replace it."

[aa06a47]

looks like that is the way to go. Don't know why I'm so insistant on keeping the rigs...

I don't either given the book value of them. You might want to look at what the vehicals sell for in the paper / even e-bay. If someone loaned you that much money on a vehical, perhaps it is best if you just give it to them...(at least one of the two riggs)

[FilingOnMyOwn]

If you're 26K in the hole, then WHY would you WANT to keep them? You file bankruptcy to rid yourself of debt, not to keep it.

[DisneyGirl]

We did a redemption loan (I think that's what it's called). They get you a loan based on the KBB value but your interest rate will go up on the new loan. We owed $13500 on our van and through the BK with the red. loan it went down to $4000 and it's almost paid off now two years later. Had we kept the original loan, we'd have yet another two years to go on payments that were sky high! Plus the new loan is a positive on your credit (if you are making payments ontime that is).

Side note: we did the unpopular thing and kept and paid/paying off both our car and van. We needed them and with the red. loan on the van, we could afford them. You don't always have to give up your car during a BK. You do what's right for your situation.

[Ccarter718]

Why Would you wan't to keep the loan.... the purpose of BK is to get out of debt, not keep it.

Well to answer your question, My wife just filed BK and we were upside down on the loan. After BK we were still making payments on the vehicle and then i pulle a CR and found out that the loan was included in the BK. Now we have the option of paying to keep, or give it back with no penalty.

IF you don't want the loans included in the BK you will need to Re-Afirm the loan. Something you should speak with your attorny about. But in your situation I dont think it would be benificial to yourself to keep a loan that's upside down. Don't let the finance company rape you. Start over, you may have to make some sacrafices, but sacrafices is something you must be ready for and willing to do if your gonna go the BK route.

Hope that helps

[Jenny]

Holy Cow! How could you get that upside down? Was the rate high when you took out the loan? How long did you take it out for? I know some places will finance a car for 72 months (6 years), but usually car loans are for 36-60 months. How could you be that far upside down with so long to go?

I would suggest giving up both cars and buying a couple of cheap ones. You can get new reliable cars for way less than what you owe on your current ones.

[DisneyGirl]

I don't know about the OP's situation but for us it was negative equity from a car we had years before. It just followed us from car to car. Finally with the redemption loan, it went away!

[SinkingFast]

I don't know about the OP's situation but for us it was negative equity from a car we had years before. It just followed us from car to car. Finally with the redemption loan, it went away!

They sure can make the numbers look the way they want.

We got $6K for our trade-in last spring. I remember that #. So do my kids. Been putting that down on paperwork with BK attnys for the "Transfer of Property" thing.

I got the paper from the trade to put with our BK papers we're collecting. It says my trade was something like $14K. Hummmmmmmmmm.......... I know when we were talking, they were giving me dealer cash, and dealer sales incentives, and something else. Only thing that shows on the paper is the dealer cash. Everything else got added to the value of the trade.

They'll do that to you the other way too. Give you your whole pay off, and add the amount ON TOP of the price of their car.

Then, if you trade again, that debt just keeps building and building, as you trade and add new debt from new vehicles.

Funny how you can make numbers look any way you want them to. Who says numbers don't lie??!!