Expert: Terry Leeders - 10/9/2007

Question
I'm upside down in a car loan, The current value of the car is $10,000-$12,000 and I owe $23,000. I can no longer afford the payment. My credit is already poor due to a divorce a few years back so I thought about having the car repossessed, or should I file for bankruptcy before this happens?

Answer
Hi Frank.  You can surrender the car through bankruptcy, it wouldn't really matter when you turn over the vehicle.  There is also a chance you can redeem the car (pay the fair market value) thru bankruptcy and discharge the over-financed portion.  You could contact "722 redemption funding" to get the options...they finance the new car balance for you.  If you are in Illinois, feel free to contact me for a free consult. Thanks.
Terry Leeders
Leeders & Associates, Ltd.
Chicago Bankruptcy Attorney