Keep the car?

[superdad]

I have read some topics on this but mines a little different 👍🏻

I have a 2020 Malibu 533/month at 11% interest. I've only had the car 2 months and have made one payment. I owe 26k and I believe I'm already 7k upside down.  

with taking a lower paying job because of this virus thing going from 60k to 42k money is super tight. 

Is there any good reason to keep it? I do have a family member that has a car I can drive and no payments. 

[Anonymous]

I'm in the same boat as you sorta, laid off went from 70k+ to 40k.  Brand new is $22,000 and the value drops after you drive off the lot so you are probably more than 7k upside down. I wouldn't reaffirm it I would try to get something cheaper after discharge.  I would keep paying the car though until you file so they won't take it back until after discharge or at least close to it.

[Anonymous]

Personally, I would let it go. I would then try as hard as possible to save up as much money to buy a car outright instead of having a car loan. People think you need to have a car loan, but you really don't.

The math is great too. For example, if you buy a used Honday for $5k and that car lasts you for 5 years with minimal fixes, the monthly payment is like $83-85/month. You are effectively putting hundreds back in your pocket per month and thousands over the lifetime of a loan.

[FireMedic1]

Wait. You want to claim BK just because of a car? Theres got to be more reasons than that I hope. That would be foolish.

[superdad]

The car isn't the reason but it does factor into the over all debt and what my plan is to do after discharge. 

thanks everyone for the helpful info.