Should I let my vehicle go in Ch. 7 bankruptcy?

Question

We recently appeared before he trustee in our chapter 7 case. Since we owe more on the car than it's worth, we were planning to let it go. We have not yet been discharged and I'm having second thoughts -- should we let it go, or try to reaffirm the debt now that I have 2 jobs and we can afford it? My main concern is re-establishing credit, but if the car isn't worth it, we could let it go. What do you think?

Answer 1

You need to make the decision on whether or not your keeping this vehicle...If you decide to keep it/let it go, you need to let your attorney know so they can file the paperwork from the courts and include this in your bankruptcy filing, if you haven't done so already. Letting the car go to repo will make it difficult to finance another vehicle without paying very high interest rates for the new vehicle. If you do let it go...make sure it's included in your bankruptcy filing as they will not just put it in the filing until you instruct your attorney to do so, and causing the balance after repo to be due by you and not having the bankruptcy protection on the balance due once they sell or auction the vehicle. Good Luck!!

Answer 2

Since the minute you drive a car off the lot in most cases it loses value. You need to really think about keeping the car if you can make the payments without a hardship. If you struggle struggle to make the payments let it go and save up and buy something and pay cash. Until you get your credit back together.

Answer 3

Use what you have... and can hold