Need advice on car shopping/refinancing following BK7

[Anonymous]

Approximately two weeks before my BK7 was filed, my old car died.  I purchased a moderate used car for about $10,000, but got hit with a 12% APR loan on a car I really didnt want, but had little option...I needed a car for work and it was this or something similar. My payments are over $260 a month and I know I can get a much better car at a lower cost when my credit score rebounds.  

My current situation is:

1.5 months out of BK7 discharge

The car loan was discharged, but I am continuing to make monthly payments (Lawyer said that if I stop making payments, I can turn this car back in to GM without effecting my credit score, since its already been written off in the BK7...is this accurate?)

I have applied for and was approved for a Capitol One unsecured card with a $4000 limit.  I have not yet used this card.

My current FICO score is 611 (Still disputing two reports on my credit score that are reporting high balances on cards that were included in the BK7, so it may be slightly higher in a week or so as they were maxed out cards and the card issuers are not disputing my request)

When would be a good time to go back to a car dealership and check into refinancing or trading up for a better vehicle?  I can afford the current payments, but, since most of the money is going to interest I really want to lower this payment or at least put it toward something I like.  Any tips on car buying/refinancing after BK7 would be appreciated.  

[StartingOver10]

Congratulations on your Bk discharge. Welcome to the MyFICO

If you haven't seen it already, take a look at this thread, it has great advice for getting your score up in a relatively short time http://ficoforums.myfico.com/t5/Bankruptcy/HOW-TO-From-BK7-discharge-to-700-in-24-months-or-less/td-...

Next, don't go to a dealership to "refinance".  They don't refinance, they have you trade your vehicle in for another one and make the terms much worse.

However, you can refinance with either a credit union or bank. A credit union is more likely than most banks. You might be able to refi your current vehicle in as little as six months. One of the posters recently refinanced two vehicles from 18% to 1.99% IIRC six months after his discharge. There have been many that refinanced after they had made six or 12 payments.

[Anonymous]

I am well on my way there on the rebuilding process.  I was able to skip right to the Capitol One unsecured card thanks to never missing a payment and nothing on my report except the BK7 (ex-wife built up massive debt that I could afford while married via joint accounts and controlling the "bill paying" chore.  She basically ran up debt on everything and I had no clue, but now I am a credit score watcher).

My main issue is that I really am hoping to ditch this car for something I actually want (Subaru Outback).  It has six months of payments now and is a credit write off.  I will definitely try the CU, but hoping the lawyer was accurate in saying I can turn the keys over without damaging my credit, since the loan has already been discharged.