Repo after BK??

[longgunner]

Minnesota

My BK discharged on Dec. 6th 2006. I just found out I am going to be a Father and I need to get a more family friendly vehicle. I kept my truck through the BK but now need a more affordable and safe vehicle. Should I just let the bank repo the truck? Should I call them and turn over voluntarily? I am just wondering how this will affect me down the road? I have been told by a few dealers that the bank is no longer reporting the truck to credit bureaus due to BK so it does not matter if I give it up. They say I should get a new loan to re-establish credit. Regardless, I need a different vehicle that does not cost me $300 a month and is good for family.

Please help?? Any advice appreciated!!

THANK YOU!

[debtcollector`]

1. Congrats on becoming a father.
2. Car dealers will always say it is better for you to finance a car than keep your old one.
3. My thoughts:

The best thing you can do for your coming child is to prepare a secure life. To this end you need to evaluate your financial position. What put you into bankruptcy? Have you changed that behavior? My opinion is that anybody making less than $40k a year has no business buying anything other than a house on credit.

If you can sell your truck for what is owed on it, go for it and pay it off. Then buy an inexpensive more family friendly car with cash. Avoid the payments.

Set aside 10 percent of your pay the minute you get your check. Don't touch it for anything. Then invest that into a strategy that you are comfortable with. I prefer real estate and small business; but business is very risky. Real estate has never let me down.

After a year or two, your bankruptcy will be minor to real estate lenders --- if you have a decent down payment and aren't using a lot of other credit. You could buy a rental property within two years that will pay for your kids college. Something to think about.

DC

[moburkes]

If you didn't reaffirm the loan, then there is no penalty for letting it get repo'd. If you DID reaffirm the loan, you want to keep it, and keep up with the payments.
Congrats on the new baby!