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coltonzephyr t1_j2dn4t1 wrote

Research Chapter 13 bankruptcy. I did it years ago. It's kind of like a debt restructuring. I reaffirmed on my auto loan, which was for a Toyota I purchased new. The court basically took all my confirmed debt, lumped it together and divided by 60. I was able to pay it off early, and most importantly kept my automobile, which I needed to get to my job.

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squarybuttholes OP t1_j2e90zc wrote

Thanks. I think she needs to try some more of our local banks for a loan before we resort to that, but this is the experience I was looking for. How did this ordeal affect your credit, if you don’t mind me asking?

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coltonzephyr t1_j2fi27o wrote

OK, well, FWIW the title asks for bankruptcy advice, so...

It wrecked havoc on my credit for a while. The irony is it's easier to reestablish credit after a Ch 7, which wipes out your debt but stays on your report for like 10 years, than it is after a Ch 13, where you actually pay back what is owed. Because you can't file Ch 7 very frequently (7yrs? 10 yrs? something like that...) I had to work hard to prove myself credit-worthy. Started with secured cards, and went from there. Keeping my auto loan helped tho. And it's been close to 20 yrs ago, so it's long since gone from my reports. It was painful...but if I recall correctly, the total payment to the bk trustee was around what I was just paying for my monthly car note. So it worked out for me. As always, your/her MMV

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