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I will be filing for chapter 7 soon an was trying to decide what I should do about my car. I need a car an dont have the cash to buy a used one right now,
I currently have a 2016 Elantra that I owe $13,500 on with 18% interest, $325 a month. Should I let the car go back an try to get one after discharge?
@Anonymous wrote:I will be filing for chapter 7 soon an was trying to decide what I should do about my car. I need a car an dont have the cash to buy a used one right now,
I currently have a 2016 Elantra that I owe $13,500 on with 18% interest, $325 a month. Should I let the car go back an try to get one after discharge?
You don't always need to decide. In many cases you can keep making the payment and keep the car without reaffirming. (Then if you do want out, you just tell them to come get the car and are off the hook for it.) Your attorney can likely tell you if this is an option.
What is the book value on the car? Despite your interest rate, I would guess that you're not underwater on the loan. If you like the car and it's in good shape and your loan amount is under or close to book value, it could make sense to keep it, get through your BK, follow steps here to rebuild, then refinance it. You could easily get a rate 10% less 6 months into a successful rebuild.
Excellent advice Steeler!
Thanks for the information. Trade in value is just under $10000, It only has 21000 miles on it.
@Anonymous wrote:Thanks for the information. Trade in value is just under $10000, It only has 21000 miles on it.
Trade in value . . . so it would retail for thousands more.
I think I'd keep it. Try to avoid reaffirming if you can . . that option to bail later if you need/want to could come in handy. Then if you can, throw extra $$ at it as you rebuild. If six months after discharge you could refinance 10k for 5% your payment would drop to $189 for 60 months. Or $300 for 36 months and have a paid off car sooner.
Good luck!
Any recommended lenders to try to refinance with in 6 months? Any easier then others that you know of? Right now the loan is from Santander.
@Anonymous wrote:Any recommended lenders to try to refinance with in 6 months? Any easier then others that you know of? Right now the loan is from Santander.
You can try the CapOne Auto Navigator prequal . . it's a soft pull.
A lot of folks here have good luck with Navy Federal, PenFed, and DCU credit unions (but they aren't an option if being burned in your BK.)
For this plan to work you will have to be very diligent after your discharge. Use the tips you find here. Make sure lenders you apply to are BK friendly, don't waste inquiries, only let one card report a small balance and all that good stuff