Question on refinancing a car with a lender who you wrote CC debt off

brokentex · 03-12-2007, 04:55 PM

Has anyone ever had an auto loan with a lender after BK that they had wrote CC debt off with in the past? I got an offer from citi financial to refinance my truck and am 9 months out of discharge on a ch 7. My question is, if they were to actually refinance my loan, is there any way they could try to come after me for unsecured CC debt that I had with them that was discharged in the past ?

CATCHMEIFYOUCAN · 03-13-2007, 03:04 AM

I don't think they can, but I smell a trick ! Get a different Creditor that had nothing to do with your BK FOR NOW. Others will chime in.

Best Wishes, CMIYC

**BassBoy** · 03-13-2007, 04:59 AM

I wouldn't get a CC or a loan with any creditor I had discharged. I highly doubt that the creditor could get away with trying to recoop the loss though (by inflating interest rates and adding fees), but I would stay away from that creditor all together.

**HHM** · 03-13-2007, 07:47 AM

Since it is CitiFinancial, I doubt it is a trick.

But you should really think twice about refi'ing an automobile. There are only limited circumstances in which it makes financial sense (and any of those circumstances is generally not related to the interest rate). 95% of the time, doing a refi costs you more money in the long run. In general, refi'ing any depreciating asset is a bad financial move.

brokentex · 03-14-2007, 06:24 PM

I was approved thru citi financial for a 3.05 % lower interest rated than currently paying. Going to read the fine print before I sign the papers but so far seems to be legit.

**BassBoy** · 03-15-2007, 04:56 AM

Quote:

Originally Posted by HHM

Since it is CitiFinancial, I doubt it is a trick.

But you should really think twice about refi'ing an automobile. There are only limited circumstances in which it makes financial sense (and any of those circumstances is generally not related to the interest rate). 95% of the time, doing a refi costs you more money in the long run. In general, refi'ing any depreciating asset is a bad financial move.

I'm sure you may have stated what limited circumstances would make financial sense, but can you elaborate? My thinking is that let's say you have a 5yr. auto loan and you have a 15% interest rate. Then after a year of timely payments, you refinance at a much lower rate, let's say 8%, and you make the term 48 months. Would this a limited circumstance you speak of? I myself am curious because I have paid for my car loan for almost a year (10 payments made (ON TIME) and about to make the 11th payment and I was wondering if I could refinance at a lower rate, but make the term 48 months or even less.

brokentex · 04-02-2007, 09:15 PM

Loan was final last week.

03-12-2007, 04:55 PM	#1
brokentex Registered User B/F Newbie Join Date: Dec 2005 Posts: 61	Question on refinancing a car with a lender who you wrote CC debt off Has anyone ever had an auto loan with a lender after BK that they had wrote CC debt off with in the past? I got an offer from citi financial to refinance my truck and am 9 months out of discharge on a ch 7. My question is, if they were to actually refinance my loan, is there any way they could try to come after me for unsecured CC debt that I had with them that was discharged in the past ?

03-13-2007, 03:04 AM	#2
CATCHMEIFYOUCAN Registered User B/F Guru Join Date: Sep 2006 Location: Falls Church, Virginia Posts: 1,619	I don't think they can, but I smell a trick ! Get a different Creditor that had nothing to do with your BK FOR NOW. Others will chime in. Best Wishes, CMIYC
	July 2006: Filed Ch13 Oct 2006: Converted to Ch7 Jan 2007: DISCHARGED Nov 2007: CLOSED

03-13-2007, 04:59 AM	#3
BassBoy Moderator B/F Guru Join Date: Oct 2005 Location: Northeast, Ohio Posts: 2,070	I wouldn't get a CC or a loan with any creditor I had discharged. I highly doubt that the creditor could get away with trying to recoop the loss though (by inflating interest rates and adding fees), but I would stay away from that creditor all together.
	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.

03-13-2007, 07:47 AM	#4
HHM Moderator B/F Guru Join Date: Dec 2004 Posts: 9,515	Since it is CitiFinancial, I doubt it is a trick. But you should really think twice about refi'ing an automobile. There are only limited circumstances in which it makes financial sense (and any of those circumstances is generally not related to the interest rate). 95% of the time, doing a refi costs you more money in the long run. In general, refi'ing any depreciating asset is a bad financial move.
	The information provided is not and should not be considered legal advice or establish an attorney/client relationship. Nor do I promise or guarantee that the information contained on this post or any linked site is accurate, correct, complete, or current. You should seek the advice of competent counsel licensed to practice in your state to answer specific legal questions. My favorite resources http://www.bankruptcylawnetwork.com/ http://askmethner.com

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03-14-2007, 06:24 PM	#5
brokentex Registered User B/F Newbie Join Date: Dec 2005 Posts: 61	I was approved thru citi financial for a 3.05 % lower interest rated than currently paying. Going to read the fine print before I sign the papers but so far seems to be legit.

04-02-2007, 09:15 PM	#7
brokentex Registered User B/F Newbie Join Date: Dec 2005 Posts: 61	Loan was final last week.

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