Chapter 7 - Keeping Your Car?

Question:
I'm curious to hear your take on this, I've already asked my lawyer and I'd feel more comfortable hearing your take too. I owe the bank $28K on a car that's only worth $13K. I asked my lawyer if there's anything I need to do in order to keep the car (IE: sign a reaffirmation agreement). He said since the car is worth less then half of what I owe, the trustee would never try to take it and sell it since it wouldn't generate any revenue for the creditors, so as long as I stay current on the payments I'd be fine. Do you agree with his statement? I'm a little nervous since I can't afford to loose that car.

Answer:
I would think that you would want to abandon the car and get rid of that $28K loan if the car is only worth $13K. Buy a similar car and get a $13K loan on it instead, even if you have to pay high interest rates due to your bankruptcy. Why start out with an additional $15K in debt right away? You probably have your reasons (preserving appearances perhaps) but that's my thinking. But I'm not you, and I'm not a lawyer.





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