Getting a car loan - Chapter 13

[needsome411]

Please forgive me if this question has already been answered on this forum. I tried to do a search, but came up short.

Can anyone offer advice on getting a car loan during a Chapter 13? Our lawyer says the trustee will approve a loan up to $400 per month for a car below $14k.

My question: who should we approach? Is there a national bank or credit union that anyone would recommend? Do we have to go from dealer to dealer to ask?

Thank you!!!!!

[sofarsogood2]

Go to the "rebuilding credit" section of the forum- you'll get some info on BK friendly lenders there.

Good Luck!

[lrprn]

Another really good option is to ask your bk lawyer. If he/she files a fair number of 13s, this is not the first time this has happened to one of his/her 13 filers. Chances are your lawyer will know which local and online auto lenders are more friendly and provide better rates during an active Ch 13. Good luck!

[Flamingo]

Also if you have had a past, paid off, all payments on time car loan with GMAC, Ford Credit, etc., that ups your chances somewhat of getting approved either during a Chapter 13 (with trustee permission, of course, as you would have to supply that permission from the trustee to the creditor) or after you are discharged. If you have had one of those loans from one of the major car lenders, go to a dealership selling the same brand car and ask to speak directly to the finance manager about your situation.

[bkstuff]

To add to this question...if you are in a CH13 and need to get a loan for a car, and the trustee approves, is the loan paid outside of the BK? If you are paying with all of your disposable income, how would someone come up with an additional $400/month?

[needsome411]

Still out of luck

Thanks everyone...
Unfortunately, none of the above scenarios apply.

Does anyone else know of a national bank or credit union that does Ch. 13 loans with trustee approval? I would love the information, and I don't know if I can trust the internet ads I see. I'm willing to pay outrageous interest rates if necessary, and I have some money approved by the trustee for a down payment - I just need a car.

I guess my question is: does such a lender exist, or do I have to go to dealer to dealer and deal with the humiliation that goes with it? And if I have to go dealer-to-dealer, does anyone have some advice on the best way to go about it?

Again, thanks for your help. I'm very glad I found this forum.

[needsome411]

just saw your question "bk stuff" - sorry

I'm not 100% sure, but I believe the loan would be paid outside the 13 plan as a necessary exemption. I need to double check with my attorney - my meeting of creditors is in 3 weeks. My attorney says the trustee will approve the car given the schedule and budget she has put together, but I need to find the lender.

I'm just hoping to avoid $200 per hour phone conversations, and was wondering if anyone knows of a lender, or knows the best way to go about it.

Thanks again.

[SMinGA]

needsome, you can check with Capital One's online 'blank check' application. Read on another site today how someone a few months out from ch. 7 discharge was approved at a rate in the teens. I think the way it works, if they approve they set a max amount and then you can walk onto a car lot with pre-approved financing.

[indebt00]

We will need to buy a car during our bk....2 yrs in....so I am curious who lends too.

We do have good car credit with Mazda and Honda.

We are paying the existing car outside the plan, so for us its just replacing the payment.

[woeisme]

We tried a few of the online places that said they cater to people with bad credit, no credit, etc. and had no luck. I'd also had car loans through Chrysler credit and Ford credit, paid both perfect and in fact paid off both a few years early, but neither would finance us. So we had to go to one of those buy-here-pay-here places, and paid 18% interest :-( But the payment was allowed in our 13 through a plan modification along with the petition to take on the debt, so it really doesn't cost us the 18% interest, since it's all coming out of what used to go to unsecured creditors and now is going to paying the car loan instead. It's paid outside the plan, so it dropped our trustee payments by $300/month.

[terryorr56]

auto loan

After getting court appoval for 400 montly car payment. i appiled on line for bad credit auto loan .i was matched with a local dealer that got me financed with santander. i purchased a 2008 chrysler 300 with 45000 miles at 399 monthly payment .the payments are made outside my plan hope this helps good luck .

[getback]

After getting court appoval for 400 montly car payment. i appiled on line for bad credit auto loan .i was matched with a local dealer that got me financed with santander. i purchased a 2008 chrysler 300 with 45000 miles at 399 monthly payment .the payments are made outside my plan hope this helps good luck .

did you have to update the means test?

[woeisme]

We didn't have to redo the means test, but did have to update our schedules since our income had changed since originally filing. In our case, hubby had gone on disability which changed our income a lot, but son no longer needed daycare since hubby was home and no longer had long commute so gas fees went down... Anyhow, after the new schedules, the petition for added debt, and car payment was included, our plan payment went from $1100/month to $400/month ($400 drop due to all the change in income and expenses, and $300 due to car payment). So yes, we did have to fill out the schedules, but we wanted to because it was to our benefit.

[jamesalip]

There is a company called Prestige Financial services that approves people in chapter 13 with little to no down payment. However, they will be looking to see if you have paid your house payments on time for the last 6 months. The website is www.gopfs.com. Then you can call them and they can give you a list of dealerships that they work with in your area. They will not do an application for open 13 online. You have to go to a dealership to work with them.

If you get approved with them, they have a program that if you make your payments on time then they will lower your interest rate.

[getback]

There is a company called Prestige Financial services that approves people in chapter 13 with little to no down payment. However, they will be looking to see if you have paid your house payments on time for the last 6 months. The website is www.gopfs.com. Then you can call them and they can give you a list of dealerships that they work with in your area. They will not do an application for open 13 online. You have to go to a dealership to work with them.

If you get approved with them, they have a program that if you make your payments on time then they will lower your interest rate.

Is Prestige Financial services available at any dealership?