Veta wrote to me through the GetOutOfDebt.org site and asked the following question. If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.
Income from the GetOutOfDebt.org site advertising is used to help alleviate poverty. If you would like to help me to help others, there are easy and free things you can do, click here to learn how you can help.
“Dear Steve,
I’m going to file a Chapter 7 bankruptcy and I would like to keep my car but I might not have enough exemption. Even if I do the judge may not allow me to reaffirm the car loan because the payment is so high. So I don’t know if I should keep making the payment on it and then risk losing it.
Veta”
The Answer:
Dear Veta,
I really think this is a situation you need to discuss with your bankruptcy attorney. If you don’t have a local bankruptcy attorney you can click here for a free bankruptcy consultation with one.
If the payment is high, and you are going to keep the car, by reaffirming the debt, it might be more than you can reasonably afford after your bankruptcy. If you reaffirm the debt, you will not be able to include that debt in a future bankruptcy if you run into trouble again.
The last thing you want is to go bankrupt and still just get by each month because you’ve kept commitments that are more than you can afford.
