Keep or let go

[Travelsundays]

I recently filled chapter 7. I did not include my truck. My question is, would it be better for me to let it go after discharge and finance another vehicle? Or just keep up with the payments?

[amber78]

Im reconfirming my car loan.... I know some might advise against that, but Im well with in my means to make my payment each month, its at a descent interest rate, and i love the program I got the loan from (for low income single moms).

I guess your answer depends on you... can you afford to keep this car?  Is the interest rate horrible?  Could you get away with no car or a cheaper car?  Could you get a car loan after bk?  Just some things to think about

[Travelsundays]

I can afford the payment and only about 1 yr left to pay it off. Wasn't sure what would be better on my fico post discharge.

[simi_go]

If you reaffirm it then it will of course look better. I would personally suggest that if the payment is well within your means and the vehicle is worth more than you owe on it to keep it. Otherwise if you are upside down I would suggest letting it go.

[ezdriver]

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@Travelsundays wrote:
I recently filled chapter 7. I did not include my truck. My question is, would it be better for me to let it go after discharge and finance another vehicle? Or just keep up with the payments?

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By that statement, you mean that you reaffirmed the loan. In that case, if you were to miss any payments, the loan company can repossess the truck, auction if off and then pursue you for any deficiency amount. You have not protection of the bankruptcy laws for that auto loan.

[StartingOver10]

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@Travelsundays wrote:
I can afford the payment and only about 1 yr left to pay it off. Wasn't sure what would be better on my fico post discharge.

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If you reaffirmed the debt, then don't let the truck go.  A repo after a BK is a serious hit to your credit. Very serious. So don't let it go. Either continue to pay until pay off or sell it and go get another one. 

If you didn't reaffirm the debt, then you can let it go.

Take a look at your BK petition. The debt should have been listed because all debt has to be listed. What exactly do you mean when you say that the truck wasn't included in your BK.

[cliccmade]

Have you thought about trading it in for a newer model, adding the balance to the loan, then refi in 12 mos?

[Travelsundays]

Hmm isn't it better to let it go

[0REDSOX7]

Or, if your state (and lender) allows, do option 4 on your statement of intentions - and this pay to keep the collateral, but not re-affirm. 

That is what we did.

[StartingOver10]

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@Travelsundays wrote:
Hmm isn't it better to let it go

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It is better to let it go during the Bk. The issue arises because you said you didn't include your truck in the Bk. What does your Bk petition say about the debt? Did you surrender or retain the vehicle on your statement of Intentions?