debt approval

[chucksherm]

The lease is up on my car. I had a payment of $230/mo. I'm interested to hear what experiences others have had in going through the 'trustee approval ' process. This process appears, at least to me, to put people between a rock and a hard place. #1..I have to get someone to accept my offer to buy their car, then I have to try to get financing, all the while all parties know that it will take at least 5 weeks for the court to approve the payment.
What if the payment comes out to $10/mo more than the payment I have now? Will the trustee deny me? What if I go back in 5 weeks and the car is sold? Do I go through all this again? Will the trustee tell me what's the most he/she will allow for a monthly payment so that I know what I can buy?
I've called a credit union and a bank that told me, without even talking any $$
that while in a chapter 13 they could not offer me a loan.
Most dealers don't seem too interested in dealing with someone who can't buy the car today.
I'd be greatful for any advice.

[rrockinggramma]

Finding a lender while in a chapter 13 is tough to do. Many won't come near you and with the credit crunch now, they may be even more fearful. However, a company called 722 redemption (722redemption.com) would finance you and it would all be done through the trustee and your attorney. The only drawback is the high interest rate. However when between a rock and a hard place, not much choice.

[Flamingo]

Your attorney is a great source for financing information as he/she deals with this all the time. Ask him/her for any suggestions. We utilized a broker reference given to us by our attorney when we refinanced to buy out early from our Plan in order to get a new roof on our house which would not have lasted another year. The broker protected us from predatory lending and got us a fixed 30 year FHA loan for 6.5% which was the going average rate in spring 2006. Another trick in finding car financing is going to a dealership (Ford, Chevy, Chrysler) at which you had a former car loan that was paid in full and never late. Your past record works for you in that respect.

[chucksherm]

Your attorney is a great source for financing information as he/she deals with this all the time. Ask him/her for any suggestions. We utilized a broker reference given to us by our attorney when we refinanced to buy out early from our Plan in order to get a new roof on our house which would not have lasted another year. The broker protected us from predatory lending and got us a fixed 30 year FHA loan for 6.5% which was the going average rate in spring 2006. Another trick in finding car financing is going to a dealership (Ford, Chevy, Chrysler) at which you had a former car loan that was paid in full and never late. Your past record works for you in that respect.

Thanks for the advice. The present lease is through Ford Credit and we've never been late. I'm sure they would deal with us even though the rate would probably be 10%.
My main concern is finding out the maximum monthly payment the trustee will approve for me. And then, getting a dealer to give us his best possible deal when the dealer knows that we don't even know how much we can spend and it will take weeks to find out. Car sales people like to have the upper hand. Such as, you're ready to buy the car RIGHT NOW!
They don't like to deal with people who have time to go shopping all over. Especially with used cars. By the time you go through the approval process, the car will probably be gone anyway.

[Flamingo]

A good finance rep/manager at any dealership will work closely with you on that. Yes it's frustrating but most finance folks at dealerships have experience with what you are going through and will work with you accordingly. Just don't be afraid to ask questions and state your fears. Remember, nothing is final until approved by the Trustee so you will not be commiting to anything and just gathering information. We purchased a new vehicle after our buy out (not yet discharged) and obtained 0% financing for 4 years on a brand new GMAC vehicle (we qualified for their promotional special at that time which shocked us). We previously had vehicle loans through GMAC and we were told by the salesman and finance manager that our past record with GMAC helped us to qualify for that promotional special which is usually just reserved for good credit buyers. You never know what can occur. Just do the best you can and submit your informatoin quickly to your attorney and trustee.

[rrockinggramma]

Not saying that Ford won't work with you, but I wouldn't be surprised if they say "no" even with your great payment history. BK scares off many lenders. GL

[chucksherm]

Not saying that Ford won't work with you, but I wouldn't be surprised if they say "no" even with your great payment history. BK scares off many lenders. GL

Thanks for the advice. Especially about working with the finance manager at the dealership. Makes sense. Now that I think about it, I'm sure they have tons of experience with this stuff.