Keeping your car through bankruptcy, Part II

In a previous post I discussed reaffirmation agreements and how most people can keep their car through a bankruptcy. Now I need to add one caveat: Can you afford it?
Many people have car payments that may have contributed to their insolvency. Most experts agree that your car payment, including your insurance, should not be above 10% of your gross monthly income. When a car payment exceeds this amount it deprives your budget of additional money for emergencies and other discretionary uses.
Remember, a car is a depreciating asset. Once you drive one mile it is a used car. So why not get a used car that’s much more affordable and already significantly lower than its new car price?
Something to think about…

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