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New Member
Posts: 7
Registered: ‎09-12-2017
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Should I keep it?

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?

Established Contributor
Posts: 593
Registered: ‎06-04-2015

Re: Should I keep it?


rcp1986 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.

Ch 7 Discharge May 2015: EQ 588/TU 552/EX 570
Sept 2017: EQ 679/TU 660/EX 668 w/ 24% CC util reporting
Discover/Target/NFCU CLOC/NFCU Cash Rewards/PenFed Power Cash Rewards - $45k total revolving
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Super Contributor
Posts: 11,554
Registered: ‎09-10-2014

Re: Should I keep it?

Excellent advice Steeler!

Current FICO 8 Scores EX569/TU485/EQ543 9/18/2017 Starting scores 553/485/543 08/25//2017
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New Member
Posts: 7
Registered: ‎09-12-2017
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Re: Should I keep it?

Thanks for the information. Trade in value is just under $10000, It only has 21000 miles on it.  

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Re: Should I keep it?

[ Edited ]

rcp1986 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!

Ch 7 Discharge May 2015: EQ 588/TU 552/EX 570
Sept 2017: EQ 679/TU 660/EX 668 w/ 24% CC util reporting
Discover/Target/NFCU CLOC/NFCU Cash Rewards/PenFed Power Cash Rewards - $45k total revolving
New Member
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Registered: ‎09-12-2017
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Re: Should I keep it?

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.

Valued Contributor
Posts: 1,443
Registered: ‎12-17-2015

Re: Should I keep it?

Great advice already dispensed...

I'll just add for others that might read this post
PLEASE don't drive off car lots with 18% auto loans.

Just don't do it.... you're begging for financial issues heaped onto the ones already apparent in being offered 18% in the 1st place ( remember this is a 2016 vehicle, so the writing was likely on the walls when the loan was signing for)

It's one thing to suck down 10 even 12% on a LOW dollar amount loan sub 9k or so because you can fight through the low amounts and erase the loan quickly but higher dollar amounts cause too much financial household pressure... for what?
A depreciating 'car' you're overpaying for...not WORTH the jeopardy...save yourselves!

There are plenty of 5-8k rides that will fill the bill until you can comfortably do something different different.

And again owing 7k at 12% is a world of difference than 13-15k at 18%

Sorry for leaving the reservation U just don't like how so many ppl get caught up behind car notes and insurance based on over buying based upon % rates
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Registered: ‎06-04-2015
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Re: Should I keep it?


rcp1986 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 Smiley Happy

Ch 7 Discharge May 2015: EQ 588/TU 552/EX 570
Sept 2017: EQ 679/TU 660/EX 668 w/ 24% CC util reporting
Discover/Target/NFCU CLOC/NFCU Cash Rewards/PenFed Power Cash Rewards - $45k total revolving

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