Question Reaffriming Car Loan Question

[debrat4062]

Hello, I am filing for Chapter 7 bankruptcy and will be going to court to meet with the trustee (creditors meeting) next week. I am reaffirming my car lease (2006 Toyota Corolla, and the lease ends in late February), and have a question. Will Toyota Motor Credit probably notify the credit agencies of my payments? I have always made my car payments on time, and none are included in the bankruptcy. If they do not notify the credit agencies, could I call them and request that they do? I will need a car in February, and want these payments to help build my Auto Industry credit.

I know this has been talked about before, but what specific car manufacturers have you had guys had success with after bankruptcy? I emailed a Mazda (Ford) and Chevy (GM) dealership finance manager nearby and he said that financing / leasing a car in February should not be a problem. Any other suggestions?

Thank you!

[WoodSprite]

Hello, I am filing for Chapter 7 bankruptcy and will be going to court to meet with the trustee (creditors meeting) next week. I am reaffirming my car lease (2006 Toyota Corolla, and the lease ends in late February), and have a question. Will Toyota Motor Credit probably notify the credit agencies of my payments? I have always made my car payments on time, and none are included in the bankruptcy. If they do not notify the credit agencies, could I call them and request that they do? I will need a car in February, and want these payments to help build my Auto Industry credit.

I know this has been talked about before, but what specific car manufacturers have you had guys had success with after bankruptcy? I emailed a Mazda (Ford) and Chevy (GM) dealership finance manager nearby and he said that financing / leasing a car in February should not be a problem. Any other suggestions?

Thank you!

I'm still in the 60-day club, so my experience won't be as valuable as that of others, but nobody else has answered yet so I'll bump this up, at least. I was very surprised to see that Honda had already reported my new lease (signed January 08) payments to the credit agencies, which seems to have given my credit score a nice little boost. If your score hasn't taken too big a hit, you may be in a better position than you think. But please, somebody else with some more relevant experience chime in, here.

In response to your question about getting a loan next February, I can tell you what I did six months BEFORE filing. I purposely went to a dealer with whom I had a relationship. I laid it on the line: told them my credit had tanked, I was on the verge of BK, and I needed to get cash out of my trade-in and come away with something reliable and with less than $2300 of equity. They pretty much did whatever it took to make the deal happen.

I know it feels as if you're going to them, hat in hand, begging for clemency, but think of their position. Remember, the car dealers are really hurting right now, and what they want is *the commission from the sale*. They don't care about your financial situation, unless it's going to affect the sale. They're not lending you THEIR money, they're looking for somebody ELSE to do it. So the sales people will really be pushing their financial folks to find you financing one way or the other.

It's up to you to decide whether what they find and offer you is in your best interest, of course. And you almost certainly won't be offered a super-low interest rate for a while yet. If you're granted a fresh financial start,

Hey, good luck with your 341. Let us know how it goes.

[beachymama]

Has anyone had luck trading in their leased vehicle for another leased vehicle right before filing (and your credit already sucked?) My 3 year lease is up in January. I have been leasing Honda Odysseys for the past decade and now Honda is denying me credit this time (I have a charge off and late mortgage payments on my credit reports--nothing else inc. car payments have been late).

[beachymama]

Follow up: I was approved using the link from this website for roadloans.com.

I applied yesterday and today I was approved for $26K, no down payment, up to 72 months but the interest rate is 14.09% interest rate!!!!

Can I get this modified in a bankruptcy to a better interest rate? Does it have to be a Ch 13 to be modified by the trustee? or can it be modified in a Ch 7 if I reaffirm it? I read about this on bankrate about buying a car before bankruptcy and getting it modified to the current value and interest rates.

Thank you...

[Cali]

I filed in June and the one vehicle we are keeping isn't reporting the payments.