URGENT: Car loan question

[chewy96]

My Chapter 13 case was dismissed in August after my lawyer submitted an amended plan and the payment did not get posted at the trustee's office in time. I happened to be out of town for work during the ten day window that I could file for reinstatement and as a result - my vehicle was repossessed. It has since been sold at auction.

I am retaining a new attorney and am going to file a chapter 7 case, but I need a car! I've tried to get approval from one dealership and from Road Loans - but they won't touch me because I have a "dismissed" bankruptcy and not a "discharged" bankruptcy.

If I find a lender who might finance me, should I do it before I file a chapter 7?

Please help!

[tiredofdebt1]

apply w bankruptcyauto.com u pay 99 dollars the 1st 3 months then fall into ur regular payments, this is a 722 loan...u can get approved but need 2 provide a case number to complete process

[chewy96]

What exactly is this 722 loan that everyone speaks of?

[HHM]

722 refers to a section in the BK Code. That section of code outlines the debtor's right to redeem certain personal property by paying the lienholder. When you file Chapter 7, you must state your intention when it comes to secured property, (Surrender, Redeem, Reaffirm).

A 722 loan refers to a loan you take for the purpose of redeeming an item of personal property (like a car). The loan pays off the original lien holder, and so long as the item of property is exempt from the BK estate (or the loan is large enough to pay the non-exempt value), you now have a new loan and get to keep the property.

First, in order to do a 722 Redemption Loan, you must have an open chapter 7 BK. Second, 722 Redemption Loans are for property you "already" have. For example, if you had immediately filed chapter 7 before your repo'd car was auctioned, you might have been able to do a redemption loan to get your repo'd car back. But keep in mind, as with any second chance (really more like 3rd chance) financing, the rates and deals are lousy.

Thus, in your circumstance, I am not sure you can do a 722...because you have no car to "redeem".

[songbird81]

All of the 722 redemption lenders I've seen also do replacement loans for people in BK, so you don't have to redeem a vehicle to finance one through one of these lenders.

[tiredofdebt1]

right..you would want 2 do a replacement which i just did...all u need 2 have is a case numberassggned..u dont have 2 wait til the 341 meeting

[chewy96]

What type of replacement vehicle can I expect? How old are they? What is typical mileage? Are they dependable? What are the interest rate and payments like?