Al Bundy
06-28-2004, 01:18 PM
I filed Chapt 7 last year. I decided to keep my car. I don't recall
signing a reaffirmation with Toyota Finacial Services (TFS). I'm
still making monthly payments at 12% interest rate even though I'm not
getting a monthly bill from them anymore. My credit report shows that
TFS has closed my account, which does not help me rebuild my credit.
I just learned of this last week while trying to do a trade-in for a
new car. The reason why I kept the car was so that I could rebuild my
credit.
Since there's no reaffirmation with TFS, I read that I can basically
surrender the car and not have to pay anything. I still owe $17K and
the car is worth around $15K. I still have 3 more years to go on the
loan and $22K more in payments before I pay it off.
I was thinking about turning the car in to TFS and buying a new car to
rebuild my credit. Anybody familiar with how to surrender a car? Do
I just drive it to a Toyota dealer or will they come take it from my
house? How would this affect my credit?
Also, I was thinking about refinancing or negotiating the interest
rate with them. In my opinion, it is still to their advantage if I
just payoff the loan amount ($17K) interest free. If they were to
auction/sell the car they would probably only get $11-$12K. Has
anybody gone through this process? How would this affect my credit?
Any other suggestions?
Thanks... Al
signing a reaffirmation with Toyota Finacial Services (TFS). I'm
still making monthly payments at 12% interest rate even though I'm not
getting a monthly bill from them anymore. My credit report shows that
TFS has closed my account, which does not help me rebuild my credit.
I just learned of this last week while trying to do a trade-in for a
new car. The reason why I kept the car was so that I could rebuild my
credit.
Since there's no reaffirmation with TFS, I read that I can basically
surrender the car and not have to pay anything. I still owe $17K and
the car is worth around $15K. I still have 3 more years to go on the
loan and $22K more in payments before I pay it off.
I was thinking about turning the car in to TFS and buying a new car to
rebuild my credit. Anybody familiar with how to surrender a car? Do
I just drive it to a Toyota dealer or will they come take it from my
house? How would this affect my credit?
Also, I was thinking about refinancing or negotiating the interest
rate with them. In my opinion, it is still to their advantage if I
just payoff the loan amount ($17K) interest free. If they were to
auction/sell the car they would probably only get $11-$12K. Has
anybody gone through this process? How would this affect my credit?
Any other suggestions?
Thanks... Al
