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I have been lurking on the boards for forever, but this is my first post. So here goes.......
I will be filing Ch 7 BK in the next week or so. I have an auto loan that is currently at 200% of the car's value so it makes absolutely no sense to reaffirm it. My lawyer is of the opinion that the judge would not even approve a reaffirmation. Drive through is not an option due to the finance company's policies. So that leaves me basically in the situation of having to surrender the car.
The issue is, I need something to drive. I live in a very rural area, and work is 30 miles away.
I need opinions on what to do. I have heard that there are finance companies that will deal with you one day after discharge, but I don't want to run up a bunch of inqiries trying to get a new loan.
My questions are:
1. When does the lender usually repo the car once BK is filed? In other words, how much time have I got?
2. Any suggestions for lenders that would be willing to work with me straight out of a BK? My scores right now are 496-520, with one previous repo that was a co-sign with my ex husband. He got it in the divorce and quit paying.
3. Am I missing anything? Any other options in this situation?
Answering Q3 first.... While I'm not an expert on them; you should try researching something called a 721 redemption. Theoretically, it lowers the balance to the auction value of a vehicle. I've never seen one done, but I know they're out there. If your google-fu is strong, I'm sure you can find out more.
On the other hand, I hate auto loans (they are second only to my loathing of student loans). In most cities it's fairly easy to find a relatively reliable car for between $500 and $1000. It might be a better bet to let yours go and pick up something to "get you by" until you can pay cash for a $2000 car (remember, cheap cars have cheaper insurance and don't lose much value). It's the Dave Ramsey car-buying plan.
Your scores right now are more worthless than normal. As soon as your BK is discharged and your CRs are right, you'll get a pop.
To answer question 1... usually a month or so after discharge, but it varys by state. Ask your laywer.
-SM
<shrug> /me = no experience w/ 721, I just know they exist.
If you do one, maybe you can write a thread.
-SM