Which is worse?

[Rozi]

A Chapter 7 bankrutpcy or a Voluntary Repo?

[frogger]

A chapter 7 is worse as to your credit score if that is the question........

[HHM]

Both are bad, but I suppose in absolute terms a BK is worse (although not by much).

Here is the problem, when they repo, they can come after you for the difference, so odds are, you end up in BK anyway if you have other debt issues. So, in that sense, it is not a real choice.

[ValleYum]

And lenders (if you ever want to finance a car in the future) would probably rather see a BK only rather than a Voluntary Repo followed by a BK. JMO & YMMV

[Rozi]

Thanks yall! I am still going back and forth on this Chapter 7 idea. I sign the final papers tomorrow but, I just want to make sure I am doing the right thing. I can afford all of my bills but the car so it's just makes me feel really guilty and like a piece of crap

[HHM]

Look at it this way, financially, which way are you better off, eliminating your debt, or keep paying for a car you no longer have? Credit recovers over time, but you can never re-earn money you lost to poor decisions.

[frogger]

Credit recovers over time, but you can never re-earn money you lost to poor decisions.

Excellent advice. Run the numbers and make the best business decision for you and yours.