Driven to Bankruptcy in Upside-Down Car

My husband and I are preparing paperwork to file for a Chapter 7 bankruptcy. One of our major issues is we have two cars, and the loans for both of them are upside down. That is, they are for more than the cars are worth. At present, we plan to reaffirm the car loans on our vehicles even though I would prefer to let them go because they're upside down. Our problem is that we live outside of the metro area where we both work. We need two vehicles. But we have no cash to purchase cars. If we chose to surrender the cars we have now, how could we obtain replacement vehicles?

-- Jennifer

Dear Jennifer,
You ask a great question and definitely are thinking about the most important parts of life after bankruptcy. Most families need two cars. And unless the cars are paid in full and reliable, you have to find ways to finance them and make the payments.

Read more:

RESOURCES

• Bad Credit Car Loans
• Secured Credit Cards