Buying/Leasing a car after BK

[katt3344]

Our discharge was in 03/2009 and we bought a used car in 01/2010 and the dealer financed us thru BMW at a rate of like 14%. But we then we came home and went online and applied for a refi thru Captial One and got 8%, which dropped our pymt like $100.00/mon. Never had to make a pymt thru BMW, just thru Capital One. And last weekend we bought a used car thru CarMax and they were only offering like 11.25%, but again, we applied for a second refi thru Cap One and this time got 6.25%. They have good rates for those with credit issues including BK. Also, we found the refi rate is better than the actual original loan rate thru them. However, they will only refi/finance 30K and the terms as far as years and rate are based on the year of the vehicle as well as credit.

[backtoschool]

Cramming down a car loan can only be done in a chapter 13. In a chapter 7 you either have to reaffirm the car loan, or give the car up as is.

[Rickfox911]

Anyone heard of getting a car loan restructered to fair market value after or during a BK through the same lender? I'm upside down probably about 10K on my truck and my lawyer that I only have retained right now, said he could do that. I have no idea how anything works for the BK stuff, I just know that I pretty much have to do it now that my wages are being garnished from divorce. Beginning this process I hope is the worst.

[LSUTiger32]

Okay, please don't think I am too crazy and sorry inadvance for being so long winded, I have a lot on mind and its been a really frustrating 3 years for us.

We would like to dump our leased vehicle (have not made September's payment) but otherwise current. We did not sign reaffirmation agreement, our attorney told us to look around to see what our options are after our 341 in August. We have talked with a few dealers and they all suggest that we wait until after discharge. Why I don't know. We have been to the same dealer twice and actually took a few vehicles and like 2 they are both 2007's, one has 40,000 the other has 25,000 miles. Interest rate on both was 18.95% not sure of the term, with $500.00 down. Payments are roughly what we are paying on the lease. Why is it better to wait for the discharge, we are scheduled for October 18 (my wedding anniversary)

We filed Chapter 7 since I was laid off in 2009, I was able to find another job within a few weeks, but for alot less pay. Essentially we could no longer afford the credit card payments and have not been able to pay for them for a very a long (6-8 months at least prior to filing). Our financial situation is no better since we have filed, other my phone does not ring like crazy any longer. Bottom line I need to find a better paying job roughly was I was making before I was laid off would be great I have been persistent with doing so, but nothing is happening. I recently applied for a position with my previous employer who laid me off in October 2009. Not sure how that will pan out as they do a credit check, I explained the situation to the office manager, she also knew my financial situation somewhat when I worked there (had two house payments, house finally sold, has to do short sale, etc.) and she totally understood where I was coming from, as she filed several years ago. I just hope its not held against me for the position.

I would love to sell our house and move for something cheaper, but like everyone else no one is making squat on their houses. (I also think me all of my neighbors are nuts), but where would we go, mostly who would give us a loan. We are renting people as you don't like the home is really yours. I would not want to explain anything to our kids (6 & 10) either as well as our family members. No one in our families know we have filed, my in laws would understand my family would not, my siblings would never let hear the end of it and the jabs would be endless.


Any comments or suggestions are greatly appreciated. Thanks for listening.

First.....If you are filing and have the chance to get out of the car lease, get out. However.....DO NOT go and buy another one at 19% interest!!!!! You are saying in this post that you cannot really make the payments and that your financial situation is still going to be nip and tuck even after the discharge. You have to sacrifice something. Dump the house or the car but you know you can't keep it all right now. You should seriously consider dumping it all and getting a clean start, but I certainly understand wanting to hold on to the house. When you get another better paying job, then you can consider a newer car but you need to get out of a car payment for right now. It's going to mean driving a older used car for a while, but I don't really see where you have a choice.

Second....DO NOT worry about what other people think. You would think your siblings would be supportive of you, but forget about them if they are not. Don't let other people dictate your financial future. I totally understand about the kids, mine are the exact same age but remember they will survive no matter what you decide. Just keep loving them and they will be fine. The best thing you can do for them is get yourself right now financially, so that they can go to college later. That will mean more to them than what house they lived or what kind of car you drive for a year or two while you re-group. Believe me, I was there and now we are making some serious headway towards a promising financial future.

Whatever you decide to do......good luck and I hope it all turns out well!

[backtoschool]

Okay, please don't think I am too crazy and sorry inadvance for being so long winded, I have a lot on mind and its been a really frustrating 3 years for us.

We would like to dump our leased vehicle (have not made September's payment) but otherwise current. We did not sign reaffirmation agreement, our attorney told us to look around to see what our options are after our 341 in August. We have talked with a few dealers and they all suggest that we wait until after discharge. Why I don't know. We have been to the same dealer twice and actually took a few vehicles and like 2 they are both 2007's, one has 40,000 the other has 25,000 miles. Interest rate on both was 18.95% not sure of the term, with $500.00 down. Payments are roughly what we are paying on the lease. Why is it better to wait for the discharge, we are scheduled for October 18 (my wedding anniversary)

We filed Chapter 7 since I was laid off in 2009, I was able to find another job within a few weeks, but for alot less pay. Essentially we could no longer afford the credit card payments and have not been able to pay for them for a very a long (6-8 months at least prior to filing). Our financial situation is no better since we have filed, other my phone does not ring like crazy any longer. Bottom line I need to find a better paying job roughly was I was making before I was laid off would be great I have been persistent with doing so, but nothing is happening. I recently applied for a position with my previous employer who laid me off in October 2009. Not sure how that will pan out as they do a credit check, I explained the situation to the office manager, she also knew my financial situation somewhat when I worked there (had two house payments, house finally sold, has to do short sale, etc.) and she totally understood where I was coming from, as she filed several years ago. I just hope its not held against me for the position.

I would love to sell our house and move for something cheaper, but like everyone else no one is making squat on their houses. (I also think me all of my neighbors are nuts), but where would we go, mostly who would give us a loan. We are renting people as you don't like the home is really yours. I would not want to explain anything to our kids (6 & 10) either as well as our family members. No one in our families know we have filed, my in laws would understand my family would not, my siblings would never let hear the end of it and the jabs would be endless.


Any comments or suggestions are greatly appreciated. Thanks for listening.

The longer you can wait after discharge, especially if you work on repairing your credit, the better interest rate you will get. If you can stay current on the lease, you will be in good shape in a couple of months to get a better car for a lower interest rate.

[Beachlover2]

Okay, please don't think I am too crazy and sorry inadvance for being so long winded, I have a lot on mind and its been a really frustrating 3 years for us.

We would like to dump our leased vehicle (have not made September's payment) but otherwise current. We did not sign reaffirmation agreement, our attorney told us to look around to see what our options are after our 341 in August. We have talked with a few dealers and they all suggest that we wait until after discharge. Why I don't know. We have been to the same dealer twice and actually took a few vehicles and like 2 they are both 2007's, one has 40,000 the other has 25,000 miles. Interest rate on both was 18.95% not sure of the term, with $500.00 down. Payments are roughly what we are paying on the lease. Why is it better to wait for the discharge, we are scheduled for October 18 (my wedding anniversary)

We filed Chapter 7 since I was laid off in 2009, I was able to find another job within a few weeks, but for alot less pay. Essentially we could no longer afford the credit card payments and have not been able to pay for them for a very a long (6-8 months at least prior to filing). Our financial situation is no better since we have filed, other my phone does not ring like crazy any longer. Bottom line I need to find a better paying job roughly was I was making before I was laid off would be great I have been persistent with doing so, but nothing is happening. I recently applied for a position with my previous employer who laid me off in October 2009. Not sure how that will pan out as they do a credit check, I explained the situation to the office manager, she also knew my financial situation somewhat when I worked there (had two house payments, house finally sold, has to do short sale, etc.) and she totally understood where I was coming from, as she filed several years ago. I just hope its not held against me for the position.

I would love to sell our house and move for something cheaper, but like everyone else no one is making squat on their houses. (I also think me all of my neighbors are nuts), but where would we go, mostly who would give us a loan. We are renting people as you don't like the home is really yours. I would not want to explain anything to our kids (6 & 10) either as well as our family members. No one in our families know we have filed, my in laws would understand my family would not, my siblings would never let hear the end of it and the jabs would be endless.


Any comments or suggestions are greatly appreciated. Thanks for listening.

[mikemike]

Lease?

I was wondering if anyone ever got approved for a lease?

[kidomanus]

My question is whether I can get a car loan in an open Chapter 7 bankruptcy after the 341 meeting and before the discharge is issued without the approval of the Trustee? My car was totaled last week and I need another one soon to get me to work. Thanks.

[nomoneynomore]

Bought a brand new vehicle...EEKKKK

We bit the bullet this week and bought a brand new vehicle. I admit, I broke down in sheer terror when signing the paperwork. I was sick to my stomach, sweating, shaking, the whole nine yards. Here are the details of our deal.

Discharged Ch 7 Sept 2008

We have had 2 vehicle loans since at 2 seperate credit unions. We borrowed $11500 (12% for 60 months $380 pmnts) in Sept 09 for a vehicle and paid it off in May. We took out a $10,000 (8.75% for 53 months $325 payments) loan at that time for a vehicle and paid it down to $7000 in July. Since we made that large payment, we were able to finance this loan at the end of August. ($7000 @ 6.25% for 48 months at $250).

Credit scores as of the end of August 2010 were:
Hubby 660, 699 & 644
Mine 675, 711 & 676
He makes $3000 gross monthly & I'm a homemaker. Our living expenses (bills, insurance, groceries etc run around $500 monthly) We have no other monthly income or expenses (house included w/ job that he started 6 months ago).

We bought a 2011 Kia Sorento for $26850 or $30000 after all the wonderful fees. We didn't put anything down on it. We were approved through the same credit union who did our first loan. The terms are:
$30,000
6.24%
78 months
$472 month

We plan to use our tax refund to pay off the lower balance loan then apply the rest to the Kia loan. We will then take the $250 from the first loan and put it toward the Kia loan. Any tax refunds will be applied toward the balance until it's paid off. We did a lot of research before choosing to do this. We also have almost $20k in savings, just in case something happens we "hopefully" would pay down the loans and refinance if needed.

[dirkdigler]

.

[tramettrust]

Maybe ask your parents/spouse/relative to get the car for you, cause i believe once you're were bankrupt before, it's kinda hard for you to get anything again. it will take some time.

[rrj]

hi

I have bought 3 cars through are goverment surplus
dui and seized cars

I paid 200.00
each car lasted about year,
my way of thinking the dui ones had to be running when they got stopped
I got 93 caliver
and 90 sunbird

i wont pay over 200.00, i know if there not any good i will least get my money back at teh car crusher

you can google goverment surples for your state

tn oh and pa have them

[Gillsbroke]

When you consider a new vehicle or spending a lump sum on anything that has to do with creditors/debt keep in mind the "look-back period". They bankruptcy court can dismiss your petition if you have a "preferred" creditor that you have paid more than $600 to in the 70 days previous to your filing. They look at each payment differently, so iif it is your mortgage or a utility bill they will allow those type of expenses, even a car payment, but if you put down a substantial amount on a vehicle they may say that you should have used that money to pay creditors. You might want to speak with your BK attorney before making a purchase like that.

[mm2009]

If you have a credit union account go there for your loan...they are more likely to approve you since you are a shareholder. I was approved 12 days post BK for a reasonable rate (under 7%). Going rate for good credit is 4.5%. ....best news no spam!

This is encouraging.. I belong to one credit union.. i havent filed for BK yet.. i was about to make a mistake and buy a new car pre-Filing, thinking i may be stuck at high interest rates later ( i still may).. but i really need this cash i'd be putting into a new/used car now, upfront..

I saw another thread, the avg seems to be between 7 and 13%, but who knows what the factors are.

For me, i still have a job, have been here 5 years.. my income level should be high enough for a credit union to possibly approve me i'm guessing..

Perhaps i should join another credit union now, pre stopping payments, so i have another one to fall back on (2 options) (my car just got rear ended, it has 195k miles, 10 years old, paid up, i hope that the insurance pays for the damage, other wise i may have to get *something* pre filing/stopping payments i guess.

**Anyone in here manage to get a car loan from a credit union before discharge, after stopping payments.. and at what rate?

[Gillsbroke]

If you have a credit union account go there for your loan...they are more likely to approve you since you are a shareholder. I was approved 12 days post BK for a reasonable rate (under 7%). Going rate for good credit is 4.5%. ....best news no spam!