Posted on: 10th Sep, 2012 12:14 am
I am planning to file Chapter 7 as I'm facing some financial issues. But I need to decide whether or not I should re-affirm my car loan. I currently owe $5800 on that car loan. I know it would be better to walk away from the car but I'm worried that I won't be able to come up with a down payment in time to buy another car. I need to have a car every day and would have to rent a car until I could buy another one. I'm not behind on the payment. Until the BK is finalized, the only money I would be able to save is what I'm paying now for my car payment monthly. My payment is $365.00 a month. Even after the BK is final, I won't have extra money since the BK is on old debts. I'm busy paying the state and the IRS to avoid tax liens.
Hi Vittoria,
As you don't want to lose the car, reaffirming the car loan will be a good option for you. However, you should also check your affordability. Unless you can afford to make the car payments, you shouldn't reaffirm the loan.
Thanks,
Jerry
As you don't want to lose the car, reaffirming the car loan will be a good option for you. However, you should also check your affordability. Unless you can afford to make the car payments, you shouldn't reaffirm the loan.
Thanks,
Jerry
Hi Vittoria!
Welcome to forums!
If you don't have the money to pay off your reaffirmed car loan, then it will be better to not reaffirm the loan.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
If you don't have the money to pay off your reaffirmed car loan, then it will be better to not reaffirm the loan.
Feel free to ask if you've further queries.
Sussane