Filing chapter 7 want to keep car, but loan is with NFCU and so is most of my debt!!

[earena]

I am meeting with a lawyer next week to start the process. I've tried for the last year to pay debt, but it just keeps going up and at this point all I'm doing is shifting money around and racking up interest. All and all I have about 45K in CC debt and because of recent medical issues about 8K in medical debt. I'm down to a 1 income house hold from 2 a year ago, so debt just racked up... Most of my debt is with Navy Federal 19K credit card and 15K CLOC. I also have a 21K car loan with them that I want to affirm. Just last week, I missed my first CC payment ever but I'm not late on anything else.  I am going to ask next week, but should I try to refinance and get my loan out of NFCU or will they let me keep the car? I have a preoffer from capital one but they are going to be included too for about 4K.

[Anonymous]

Unless the car is worth considerably more than $21k, just let it go.

Recover and start your new financial life free from that burden. Take what you would have spent on payments the next few months and buy a cheap car for cash. Keep saving that payment and sell the cheap car and upgrade in a year or whatever.

[earena]

It is worh about 29K, I put a 7K down payment on the loan 2 years ago when I was a 2 income household. I can't let it go, it's my means of transporting my family of 7 around so the size is important. I'm afraid that they will repo it to go towards the debt I owe them.

[Anonymous]

Don't make any financial moves like refinancing right now.

Talk to your lawyer and also you can ask the BK department at NFCU. They'll let you know if you can "pay and stay" without reaffirming. This is the best option if it's available, because you can still bail on it if you ever need to down the  road. Some credit unions are weird about it though and will make you reaffirm. Not sure about NFCU.

One way or another, you should be able to keep the vehicle if you want to.