I'm about to file for Chapter 7 next week Pro Se and was wondering if anyone has had any luck with Ally and negotiating better terms. I owe about 14k, but it blue books for 7k. I use it for pools (part time job to keep afloat) and to get back and forth to my full time job. I'm 45 days late on the truck payment as of right now. They haven't been helpful at all up to this point. Im at 12.5% interest as well with it. I'm hoping that they will haggle a little with me but I'm not feeling very optimistic.
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If you are that much "underwater" and already 45 days behind on the payment, why are you even thinking about reaffirming? There is simply no chance that your existing lender would agree to "cram down" that much negative equity, and at 12.5%, the payments are probably well over $400 a month.
As long as you file and get your case number before the lender has a chance to repossess, you can continue to drive the truck payment-free for another 2 to 3 months minimum. Most lenders do not file for relief from the automatic stay, and will wait until the discharge is granted (typically 4 months from the filing date) to take back their collateral. If you simply save the money that you are not paying to Ally, you should have over $2,000 saved up by the time the truck is repo'd--enough to buy a running older model without needing a loan.
Alternatively, if you are really attached to this particular truck, you could try to redeem it for its current value--there are special loans available which allow you to do this. A 722 redemption loan would allow you to finance only the truck's current value, albeit at a higher interest rate, thus eliminating over $7,000 in negative equity. This might be worth looking into. -
I should have the paperwork by Tuesday of this week to submit to the courts. I am trying to save as much as possible, but flight instructing and pools barely cover living expenses and child care. I'm not attached to the truck just need something to get my son around and to get to work and back. I was just curious if Ally would budge at all on the interest or principle in order to re coupe some of the money that they will be losing. I'll keep this post updated once I file and actually get to talk to the bankruptcy department.Comment
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