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My plan is to surrender my vehicle and file Chapter 7. Thank you very much for the kind advise @Sgoldie.
You're not going to get bankruptcy if this car note is all you owe, so don't waste your time. If you can't make the payment, let them take it back and start saving all the money you can so you can offer a settlement when they come after you for the difference between what you owe and what they sell the car for.
If you have any interest in keeping the car at a lower payment you need to talk to someone other than the dealership finance manager. Unless this is a "buy here, pay here" place - and I doubt that it is because they are usually more than happy to move you into a cheaper car at a lower payment for a much longer term - he didn't loan you the money, he simply acted as a broker for the lending institution. You need to go to the bank that actually holds the note to find out whether you can refinance for a longer payment period to get the payments down. If they say no, try a few more places (credit unions and local banks are more likely to help yo uout).
Honestyly, even if yo ucould get bankruptcy protection, it's not worth it for something like this.
You are exactly right. I am upside down in my car loan. I am young and dumb, and should have never taken this car loan. It appears bankruptcy may be my best bet, as I have a small used car I can use and works just fine. Thanks a lot, and any one else who can provide any comments/suggestions are welcome to do so.
Nah I wouldn't do that for one bad car loan. Worst case it'll get re-popped and sold at auction, then collections will come after you for whatever the bad deficit is. How you deal with a balance with a collection agency is something you can google. Dave Ramsey's website and radio show can provide helpful pointers as well.
You're not going to get bankruptcy if this car note is all you owe, so don't waste your time. If you can't make the payment, let them take it back and start saving all the money you can so you can offer a settlement when they come after you for the difference between what you owe and what they sell the car for.
If you have any interest in keeping the car at a lower payment you need to talk to someone other than the dealership finance manager. Unless this is a "buy here, pay here" place - and I doubt that it is because they are usually more than happy to move you into a cheaper car at a lower payment for a much longer term - he didn't loan you the money, he simply acted as a broker for the lending institution. You need to go to the bank that actually holds the note to find out whether you can refinance for a longer payment period to get the payments down. If they say no, try a few more places (credit unions and local banks are more likely to help yo uout).
Honestyly, even if yo ucould get bankruptcy protection, it's not worth it for something like this.
What he said.
The bank that holds the lien on the car might possibly have some "dire straight" options if you really need out and are facing repossession. They might willing to let you voluntarily give it back to them the way a leased car can be given back to the dealership (not sure on that one). Or they might allow you to sell it for whatever you can get and work out a payment plan with you on the balance.
Been there done that. Don't want to do it again. Financing cars and toys that do nothing but lose value and provide no income is generally a stupid idea in the first place. /soapbox
Do not file bankruptcy that will set you back 7 years!!! What is your current credit score?
Go to a dealership to sell the car get quote of "x"
Then go to a bank and apply for a personal loan for a portion of the difference.
Do you have any credit cards where you can get those 0% apr checks write a check for the remaining balance and pay off the car loan.
Then your wife needs to get a job any job Hotel housekeeper, grocery store, fast food. Where she can get a 450/biweekly paycheck. to pay on the credit cards and personal loan which shouldn't be more than 100 bucks depending on how underwater you are
Do not file bankruptcy that will set you back 7 years!!! What is your current credit score?
Go to a dealership to sell the car get quote of "x"
Then go to a bank and apply for a personal loan for a portion of the difference.
Do you have any credit cards where you can get those 0% apr checks write a check for the remaining balance and pay off the car loan.
Then your wife needs to get a job any job Hotel housekeeper, grocery store, fast food. Where she can get a 450/biweekly paycheck. to pay on the credit cards and personal loan which shouldn't be more than 100 bucks depending on how underwater you are
Do you think a personal unsecured loan is going to be cheaper monthly or even offered vs the current car loan?
Do not file bankruptcy that will set you back 7 years!!! What is your current credit score?
Go to a dealership to sell the car get quote of "x"
Then go to a bank and apply for a personal loan for a portion of the difference.
Do you have any credit cards where you can get those 0% apr checks write a check for the remaining balance and pay off the car loan.
Then your wife needs to get a job any job Hotel housekeeper, grocery store, fast food. Where she can get a 450/biweekly paycheck. to pay on the credit cards and personal loan which shouldn't be more than 100 bucks depending on how underwater you are
OP has close to $20K in CC debt beside the car loan. No one is going to give him any loan.
Not sure what the nature of this wife disability is but someone young and can't get any job just to earn some money? Not sure why he can't get a 2nd job either.
OP has close to $20K in CC debt beside the car loan. No one is going to give him any loan.
Unlikely, but it's possible the current lender would work with him on a personal loan to cover the difference on a short sale or possible refinance at a longer term for a lower payment rather than deal with a repo. But he needs to talk to the lender, not the dealership finance guy.
And even adding $20K to what he'll owe on the car after a repo probably isn't going to qualify him for a BK.
Quote:
Not sure what the nature of this wife disability is but someone young and can't get any job just to earn some money? Not sure why he can't get a 2nd job either.
Yeah, OP should get a second job! It's his fault for being stupid and being fooled by a much more experienced saleman into signing a contract he probably didn't understand. It's unfortunate we don't have protections in place to prevent people from being able to sign up for this abuse. I've never purchased from a car dealership, and I never intend to. I carried a loan on a car once, when I was young, financed by my parents at 0%. I paid it off early anyway. Dealerships suck, and this should be a clear reason to never purchase a car from one before you are a millionaire.
Sorry for those offended. I believe in personal responsibility, but I don't believe that people should be allowed to enter into legal contracts that they do not fully comprehend.
Yeah, OP should get a second job! It's his fault for being stupid and being fooled by a much more experienced saleman into signing a contract he probably didn't understand. It's unfortunate we don't have protections in place to prevent people from being able to sign up for this abuse. I've never purchased from a car dealership, and I never intend to. I carried a loan on a car once, when I was young, financed by my parents at 0%. I paid it off early anyway. Dealerships suck, and this should be a clear reason to never purchase a car from one before you are a millionaire.
Sorry for those offended. I believe in personal responsibility, but I don't believe that people should be allowed to enter into legal contracts that they do not fully comprehend.
My best friend is a financer who approves deals from about 50 dealers in her area. They unturn every stone to make sure the buyer can afford the car before they submit it to one of their banks, and allow the dealer to do it. She was just telling me yesterday about a man who was using his grandmother's credit to get a huge Ford F-250 truck. When she did all her research, come to find out the grandmother is 96 and on her deathbed, and the grandson hasn't worked in years, was lying on his application, and the dealer had finagled the app to get the sale.
She called back the dealer's finance manager and basically cussed him out. See, the dealers don't care whether the person can afford it or not, because they aren't the ones who lose the money on financing; the banks do.
Sorry for those offended. I believe in personal responsibility, but I don't believe that people should be allowed to enter into legal contracts that they do not fully comprehend.
Allowed... really?
So what sort of test would the OP have to pass to get a car loan? Wouldn't this be yet another Big Brother thing?
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