So to make a long story short i am in the process of filing BK 7 now i have sent all required documents over to my lawyer and i'm guessing everything is in the work she advised me that she looks to have me filed by the end of the month. Now my question is I have stopped paying my car i have a finance with Hyundai Motor Finance... I stopped paying as of last month so coming the 28th of this month will be my first 30 day late... My questions are
1. Am I doing it right by not paying so i wont be considered demonstrating "favorism"?
2. I ride 30 miles a day to work and public transportation is not an option should I be looking for a car loan prior to the filing going through?
3. If the answer is "no" to the previous question should i consider still making my payments to avoid repo being that i need my car until i get through my CH7 process?
Please and thank you for all the help.
@Anonymous wrote:To give you the best advice, it would be helpful to know more about your auto loan:
- How much do you owe?
- How much is the car worth?
- What is your interest rate?
Without that information, what I can say is that filing Chapter 7 will do nothing for the lien Hyundai has on your vehicle. If you want to keep it, I'd ask your attorney if it makes sense to stop paying the lender. If you file and they have a delinquent auto loan, they could reuqest for the stay to be lifted so they can recover, possibly in the form of a repossesion. Granted, this is not as likely to happen if you're not even 30 days past due yet.
As far as the preferencial payments concern goes, I paid my mortgage and auto loan as I regularly did right up to filing. No one objected to this, and the trustee did not try to undo my payments. I believe if I make a $5,000 principal payment to a creditor, I would likely have faced a different result. If you intend on keeping the car/loan, then I'd ask your attorney about making the payment now, as you normally do.
Whether or not you should keep the car depends on the answers to the questions I posed above.
Thanks for the quick reply. Currently the loan is upside down by a lot about 10K I have a 2014 Hyundai Elantra se coupe. I owe about 24K on it right now. Per month I am paying $540....interest is about 4% cars worth 10 - 14 per kbb
@Scupra wrote:
Is the payment "reasonable"? It sounds like you should look into a pay & stay until you're rebuilt a bit.
Not hardly lol I wish they were I mean the car is good but what I'm paying for it is madness. About 540 per month.
@Anonymous wrote:Reaffirming an auto loan for a car that's $10k upside down seems like a bad idea. You could try to redeem the car for what it's worth, either by providing the lender cash or alternate financing. Do you, or a family member, have $10k cash you can use to redeem the vehicle? In my case, I got a 401(k) loan to redeem my car. If not, some lenders will provide auto loans (Google search 722 redemption loans) for the value of the car. These loans are typically at high rates (think 24%). You'll want to determine the value by taking the clean retail (KBB figure, or whatever is accepted in your jurisdiction) and deduct the cost of repairs/painting necessary to bring the car to a clean, dealer's retail level.
Alternately, you can try to negotiate a reaffirmation closer to fair market value. If neither work (or are desirable), you can either 1) surrender the car or 2) retain it, continue to pay, but not be obligated to the loan if you change your mind down the road (e.g. if you get financing after discharge and decide to buy a different vehicle).
In the event you choose to retain and pay, but later decide against keeping the car, you would simply call the lender and ask them to pick up the car -- your loan would have been already discharged in bankruptcy, so there's no negative reprecussion.
That was awesome i just went through the redemption place it said they wil contactme and it is preapproved already... It would be saving me $9975 my loan payment would go down to 346.94 with the same amount of term months remaining which is 49...Thanks for that suggestion that seems to put me at ease alot more now i wont have to try to figure out how to secure a car til im rebuilt or worry about repo
@j_casteel wrote:
$10k upside-down?
No way...You file to get away from your debt not reaffirm it. If you had lots of equity and a reasonable payment then I'd say yes, but reaffirming is ALWAYS in the best interest of the lender.
IF they allow the pay and stay option then do it, but DO NOT reaffirm that debt.
If you have to then get a beater until you are in a better place or just keep it until they schedule a pick up (usually that is after DC) and then go to cap one auto and get something. I got a nice van for my wife 3 days after DC with decent terms.
Good luck
Yea the sharks saw my coming at the dealer ship lol.... Ive been paying on the car almost 3 years and still owe $24K sad and the car at base model is 17K new lolz.....idk what i was thinking when i signed those papers... Htyundai knew they had a fool.....