I owe 17k on my Jeep and it is worth like 5k. I need an suv or truck to tow a trailer for my business. Lawyer said try 722 redemption. It has too many miles for them so they tried for a replacement. We got denied because I am a month behind on our 2nd Mort. through them (US Bank). Anyways we are caught up now. They told me I could resubmit and try again once we were caught up.. A friend of mine went through bk last spring. She got a nice used car after she filed. Is this possible to do?
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Yes, it is possible to get a nice, used car after BK. Be prepared though because with the current credit crunch, lenders are being quite strict. It's best if you have a down payment of some kind, like $500 to $1000.
The 722 Redemption carries a very high rate, like 24%, and most dealerships can do way better than that, so if you can hold off until after your discharge, you may be much better off. Besides, you're very upside down on your Jeep and you probably would be better off just letting it go and starting over after your discharge. In my opinion, it's a great feeling to start over and be in better shape as far the loan to value ratio in concerned. Sure, you'll probably be upside down, but nowhere near the extent you are now.Bankruptcy History:
Chapter 7 filed - 10/12/2005 - Asset
Discharged - 02/16/2006
Case Closed - 11/08/2007
A banker is a fellow who lends you his umbrella when the sun is shining and wants it back the minute it begins to rain ~ Mark Twain
All suggestions are based on personal experience and research and SHOULD NOT be construed as legal advice as I am NOT an attorney. Always consult with competent counsel in your area with regards to your particular situation. -
My suggestion is shop around the Buy Here/Pay Here dealerships. While most are charging really high interest rates and too much for the car, sometimes you find an exception. I paid about a $1,000 over book value for my pickup truck but it is at ZERO interest rate. The lot is very friendly and ran no credit check.
If you can find a really small lot, right now they are all hurting pretty bad due to the fact that no one is buying cars.Comment
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I am just afraid that if we don't do the 722 and get a replacement when the time comes after discharge we won't be able to get another car and will have nothing. And I need a suv/truck for my business to pull a trailer....Comment
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the 722 replacement from US bank will still finance you once you've discharged... they just don't advertise that
SO... if you can wait and try for something with a better rate do that. If that doesn't work out you can always go back to US bank!
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