Car Loan and Credit Cards, VA home loan

[SSH0126]

If and when filing BK what happens with car loan? Does the car have to be given back? If so, would we have to pay if it is sold under the amount of money that we owe on it? 

Can we keep the credit cards that we have and continue to pay on them with a chapter 7 even after it is discharged? Navy Federal and Capital One and Military Star..

We have low 400 credit scores now if we can not get secured cards now(which I see advice given) how will we be able to do that post BK? 

How long with a loow pre chp 7 bk will it take to be able to get high enough score for a VA home loan???

[SSH0126]

We will be doing a chapter 7. We have no money saved and 400ish credit scores..at what point when will we have to give it back? Or will the car company come and get it? This is our only means of transportation and honestly it wasn't easy getting this one financed due to our scores.

It's a 2013 Altima 100k miles highway but we ow 17k on it. So because it's only worth 6-7k based on what we've read it would be best to let it go back.

For those that had low 400-500 scores what did you do to get another vehicle pay cash or get a financing?

[Scupra]

Most lenders will allow you to pay and stay in the vehicle. That way you can build your credit up a tad and give the car back. Hopefully someone else chimes in on this as I have not personally done it.

[TXinandout]

That's exactly what we are doing, however you must not be behind on your payments

[SSH0126]

I am not sure if that is what we want to do however becuase its 400 ish per month that we can be saving..we were thinking of either getting a used car not too old cash..not sure if financing another loan with a high interest rate would be the best thing to do..

[SSH0126]

Oh at what point in the perocess does the car go back? 

[Anonymous]

I was in the same position I am in the 400's and have a car that I owe more than it is worth.  I just went through chapter 7 and my lawyer listed it in the bankruptcy but told me since I was current on the payments to just keep it until it broke or when my scores improved to get a better deal.  When I was ready to get another car just drive it back to them and hand them the keys and walk away.  I just got my discharge 1 week ago and I still have the car, but I did just get a capital one auto preapproval letter in the mail for 35000 auto, just not sure if I am ready to take that offer this soon.  My advice is stay current on the car since you need it and after your discharge take it back to them.  Good Luck and watch I will be posting the start of my journey soon.

[SSH0126]

Yeah I looked up the worth and it was 6-7k and we owe 17k and are a couple months behind. We could catch it up but that 450 a month is money that we use for an emergency fund just not sure what to do as I'm learning it's a personal preference. Have you checked your scores yet and are you following the Bk to 700 post? There's like 153 pages on the pin I read 1-60ish last night

[jkjklkjkl]

Your scores will rise, once your accounts are listed as being included in bankruptcy. Additionally, since you've now had a car loan, with potentially positive payment history, your auto fico will be higher. Additionally, most companies won't even think about getting the car before discharge, so you have months before that. I wouldn't waste your time our money on a high rate loan. Because you seem to be ok with a beater, that's the route I would take, after they come and get the car, if your scores aren't high upon discharge and them coming and getting the car. For all you know, they may never initiate coming and getting the car, even without payment, which would buy you time to save more money.

[Anonymous]

I've worked at PenFed and two local Cus in my area doing collections,  most of the time they forget till someone says come get it or there's a mysterious car in the parking lot for a few days,  then they realize someone dropped it off. Not saying that's how everyone is,  but in my cases it was.